AOL is preparing to launch a PC-to-mobile service using Winamp Remote, allowing users with a cell phone on a data plan to access the music collection on their PC. As we understand it, installing the software on your PC turns it into, essentially, a music server that streams to your phone using mobile broadband instead of wifi.

AOL hasn’t announced the bitrate music will be transmitted at, saying only that it will be ‘appropriate.’ Whether this means it will be adjusted on the fly based on current bandwidth, or if this just means it will go for the lowest common denominator, is unclear. One thing that is known, though, is that music with DRM will not be playable, so that rules out music from the iTunes store, as well as virtually every other legitimate online music store.

AOL is clearly looking for a way to ace out the iPhone and rejuvenate phone-based music players, which have seen such limited success in North America, with a software-based solution. The concept in this PC-to-mobile service is admittedly pretty cool: your 500GB home computer can house a whole lot of music for cheap, and your phone doesn’t need a very big flash card just to hold the necessary software. We suspect this strategy won’t pay off in any significant form, though.

Flash cards keep gaining capacity without taking up much space or power, so though home computers still have the edge, few of us are complaining about only having 80GB of music and video on our iPods. One of the largest obstacles is simply how few people have unlimited data plans on their phones. While this is sure to increase, it’s a pretty small niche now, and for those on plans that aren’t unlimited, this could use up your quota very quickly. As mobile video becomes more popular, there’s also the question of whether there will be the bandwidth to stream video that can match an iPhone or iPod in quality. As for no-brainer issues, laptops are the fastest growing PC segment right now, and assuming we’re not alone, it’s common to listen to our iPods while carrying our laptops, cutting out any streaming possibilities.

The iPhone has many competitors, but AOL shouldn’t exactly be one that fills Apple’s heart with fear.

Filed under: iPhone News