Billboard reports that after lots of early hype, Motorola's iRadio service has to go back to the drawing board. Apparently phone carriers decided that the service, which "cached" audio data using PCs and then transferred it to the phones for clear audio quality, wasn't using their own data networks enough. In other words, they couldn't make enough money off the service.

iRadio could still have launched in Europe, because European carriers (or "operators," as they're called there) are more open to the idea, according to the report. But Motorola doesn't have the same licensing deals set up for music over there the way they do over here, so no dice either way.

Motorola's iRadio Delayed [Billboard via MocoNews]