Converting mp3 to AAC for mobile use - how to make files smaller?

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Hi,

when I use the Nokia Music Manager to transfer music to my N95 it converts my mp3 files to AAC at 128kbps thereby compressing a 6mb file down to 1.7mb. I'd like to replicate this for my entire collection so I can stream some music when I'm on the move without hitting vodafones measly 120mb cap. However, when I try to convert a 6mb mp3 to AAC using dbpoweramp at a constant bitrate of 128kbps the file ends up around 4mb. Is there a way of compressing it further? And how come Nokia Music Manager gets it down to 1.7mb when dbpoweramp only manages 4mb? What am I doing wrong?

Cheers.
 
Thanks for the replies. I figured out that Nokia Music Manager was actually using HE AAC v2 to shrink the file down to a bitrate of around 44kbps. Tbh it sounds ok to me so thats what I'll be going for. Unless anyone could recommend a comparable (in size) format that offers better quality? (must be N95 compatible)
 
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