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I can now see why Apple approved this app -- it's not that useful actually. The sound quality from a 3G-streamed song is a bit faint. What's worse, I never thought I'd feel so crippled having a music player that can't run as a bg process. I can't use Spotify and at the same time, for instance, read/write email or write this post. I'm sorry to say the Spotify iPhone app is not for me...

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Using HSDPA here (which you might call 3G or 3.5G or just HSDPA) but the quality is perfect - I have it connected to good quality speakers. Note I'm using the Android version too so that may make a difference.

you can use Spotify in the background, if you jailbreak and install Backgrounder. Then when you have Spotify open you just hold the home button and it enables backgrounder and keeps it running in the background, so you can use your mail or other apps. Tried it today and it worked perfect. :-)

I'm sure it works fine, but far from everyone (including me) wants to or has the possibility to jailbreak their phones.

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