Telegraph Article. Click the link for the full article. I don't think the journalist understands much about tech though as he suggests the service might help the popularity of the Zune which we can't buy over here.
Either ad supported or £9.99 premium. The bitrates don't seem to have been announced. Also, hardware support on the X Box which will appeal to many who already use that platform but not to audiophiles as it is noisy and unreliable. No mention of a mobile service.
Hopefully this will give Napster a kick as they're starting to look seriously uncompetitive in streaming.