AOL came up with an iPhone application that won the Apple award for "Best Entertainment Application" at this year's WWDC.

Going by the name of AOL Radio, the new application enables users to access the radio service through  EDGE or Wi-Fi. 

The users of the 3G iPhone should also know that this application is ad-supported, therefore it will come free of charge.

The AOL developed application was highlighted during the "iPhone Developer Showcase" and it was created using the iPhone SDK.

According to Kevin Conroy, an executive vice president of AOL, the sound quality offered by AOL Radio is as good as that of CD music.

The service will include around 200 AOL stations, as well as about 150 CBS stations, all of which are divided into 25 genres.

Up to this point, AOL has had a very eventful 2008. Last month the company announced its decision to support the OpenSocial project, announced by Google in October. AOL joined the heavy name group formed so far, which includes Linkedln, Hi5, Bebo and Plaxo.

Halfway through April, AOL agreed to buy contextual display company Sphere Source. During its three years of activity, Sphere Source has raised about $4 million in venture funding from companies such as Hearst Publishing, Trident Capital, True Ventures and also from About.com founder, Scott Kurnit.

In March, AOL announced it has acquired Bebo, one of the most popular social networking sites Europe. AOL agreed to pay for its acquisition $850 million in cash. Bebo has 40 million worldwide users and is considered one of the leading social networks in the UK.