When ring tones were initially conceived almost every big telecom provider said NO, and when they were introduced in Japan and Korea, they became a super hit and every vendor followed the suit to catchup. And ring tones became killer app for 2003 in revenue(value added services). Now Korea introduced ring-back tones and it became hit in korea and every body is trying to follow the suit hoping it will become killer app for 2005.
Verizon & T-Mobile are introducing in US. Don't know if it is already introduced in India.
For a sample Implementation n/w diagram, look in this file.
Some news & analysis regarding at forbes
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WWDC 2011 Session Videos are now available for all, for Free.