Optical media technology company Vmedia has teamed up with Indian mobile phone manufacturer Spice to integrate their optical drive into mobile phones. Spice unveiled their "Movie Phone" a few days ago; it includes Vmedia's optical drive, and supports Vmedia discs -- which can each cram in a two-and-a-half hour movie.

The discs are based on the latest blue laser technology. These 36 mm wide discs can currently hold up to 1 GB. There are plans to release a 2 GB version in a year's time. The disc can be popped into the phone much like how UMDs are inserted into the PSP.

Spice is in deals with movie studios, and has said that 40 (mainly Bollywood) films will be available during its launch. They're hoping that number will increase exponentially, but no-one can be sure... we'll have to wait and watch if the idea takes off.