TipAdept Dot Com

Nokia, the world's leading mobile phone maker, said Thursday that it had added EMI and smaller record labels to its "free" music package to challenge Apple's dominance in the digital music market.

Nokia said Carphone Warehouse, the exclusive retailer in Britain for the first mobile phone to include the "Comes with Music" package, will sell it for pound(s)129.99, or $230, starting Oct. 16.

The package will differ from other bundles on the market because users can keep all the music they have downloaded during the 12-month duration of the mobile subscription period. Music can be downloaded for no extra charge since the cost is bundled with the phone price.

The music industry hopes that "Comes with Music" will help the recording companies make up for falling CD sales while challenging Apple's hold on digital sales. The industry is also looking at the "free" model as a way to fight piracy.

After the deal with EMI, Nokia has all major labels on board, after having signed up Universal, Sony BMG and Warner Music Group.

Nokia, which is based in Finland, will also add millions of tracks to its catalog through deals with independent record labels, including the Orchard, Beggars Group, the Independent Online Distribution Alliance, the Ministry of Sound, PIAS and Pinnacle, all of which were introduced on Thursday.

The market for mobile music is increasingly crowded, with Sony Ericsson starting its music service this month in Sweden, while the South Korean company LG Electronics is planning a service similar to Nokia's.

'"Comes with Music' could potentially bring free music to millions of consumers, radically changing the music industry, and offering a significant threat to Apple's dominance," David MacQueen, an analyst for Strategy Analytics, wrote in a research report.

"In a market where price and selection are so much more important than brand to consumers, Apple cannot count on...