It will if it's available in your country, but you can only subscribe to iTunes Match from a computer's iTunes, and upload your own music to it from your computer. To stream music from Match you will need an internet connection on your phone.
Subscribing to iTunes Match : http://support.apple.com/kb/HT4914
Using iTunes match on an iOS device : http://support.apple.com/kb/HT5637
As an alternative you could change the format of the songs on your computer's iTunes so that they take up less space - you can then delete the current versions from your phone and sync the new versions.
Converting a song : http://support.apple.com/kb/HT1550