The Motorola ROKR E2 is finally here, will it be as much a failure as ROKR E1? This new music-centric cellphone no longer carries the ROKR E1’s iTunes feature. Instead, it prides itself on being the first cellphone to feature iRadio.

What is iRadio? It is a paid service where 435 commercial-free radio channels can be streamed over-the-air to the ROKR E2. The service is not limited to the ROKR E2 of course, it allows users to download channels to their computer and transfer them to play on devices such as cars and home stereos. Subscribers can also use iRadio to put their own collection of MP3 onto their ROKR E2. The service is expected to cost between $7 to $10 per month via mobile operators.

New features on the Motorola ROKR E2 includes a USB 2.0 connection for faster transfers, up to 2GB of optional external SD memory, dedicated music controls on the front and the side of the cellphone, a standard 3.5mm stereo headset jack to support your favorite headphones, support for compatible Bluetooth stereo headphones up to 30 feet away, a 1.3-megapixel camera, MPEG4 video capture and playback (15fps), and a 2-inch 240 x 320 262k colors TFT screen.

No pricing details yet, but we do know that it should be available for sale first half of 2006.