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Hoping to mimic the runaway success of Apple's App Store, Vodafone is enticing developers with a cut of the profits for each app download and 'network capabilities', which will allow developers to tailor apps to specific locations around the globe.

Developers have previously been able to create applications for Vodafone customers, though only through a time-consuming phone-by-phone basis, while also facing strict controls from network carriers.

Under the new service, customers will be able to charge the apps directly to their monthly bills, instead of charging to a credit card, which analysts say gives Vodafone a leg-up against its fearsome competitors, including Apple, Google and Microsoft.

Unlike Apple, Vodafone's app store will be open source and not limited to proprietary devices, opening the door to any number of creative apps.

The service will also be network specific rather than device specific, meaning that apps will work for a wide range of phones, from high to low functionality.

Vittorio Colao, CEO of Vodafone, said: "Vodafone is making these changes to make it easier for third parties to develop attractive new services as well as bill and support our customers through our network capabilities in all markets.

"By giving them simple access to our global customer base and network assets, such as direct billing and location awareness, we will help them to make more money while providing our customers with the innovative services that they want."

The app store will be released by the end of the year beginning with Vodafone's Symbian S60 handset range, starting in the UK and Ireland, Spain, Portugal, Germany, Greece, the Netherlands and Italy.

Last month Apple announced its App Store served its billionth download. However the company has seen a surge of controversy lately about their application approval process.

Recent app rejections, including those for the band Nine Inch Nails and The Sun newspaper, have raised the ire of iPhone users. Apple is expected to ease its approval process with the release of the iPhone's 3.0 operating system, due out in June.

Vodafone rival Nokia recently announced plans from its own app store, named Ovi - Finnish for 'door' - which boasts a catalogue of 20,000 apps, launching with its N97 handset later this year.