AT&T, which already sells eMusic songs over the air, will now be selling Napster downloads as well, at $1.99 per track or $7.49 for a bundle o' five. With an average cost of $1.50, that's still 50 cents higher than the going online rate of 99 cents, where Sprint now prices its OTA download tracks. (Verizon is still $1.99.) When asked about the cost, AT&T's spokesman called the young target audience "very price insensitive." (Maybe before their parents get that first $150 phone bill.) While Reuters didn't say which phones were compatible with the new Napster service, it did say the iPhone was definitely not one of them. I'm guessing this is for 3G HSDPA handsets only. [Reuters]

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