Nokia signs up EMI for "Comes with Music"

LONDON (Reuters) - The world's top mobile phone maker Nokia said on Thursday it has signed up EMI and many smaller labels to offer their tracks as part of Nokia's "free" music bundle "Comes with Music."

Nokia said Carphone Warehouse, the exclusive retailer in Britain for the first "Comes with Music" model, will sell it for 129.99 pounds ($230) starting from October 16.

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

Nokia's "Comes with Music" bundle of phone and music service and its followers could help the music industry make up for falling CD sales, while challenging dominance of Apple's iTunes in the digital music market.

After the deal with EMI, the Finnish phone maker has all major labels on board, after earlier signing up Universal, Sony BMG and Warner Music Group.

Nokia will also add millions of tracks to its catalog through deals with The Orchard, Beggars Group, the Independent Online Distribution Alliance (IODA), the Ministry of Sound, PIAS and Pinnacle, all unveiled on Thursday.

(Reporting by Tarmo Virki; Editing by Jon Loades-Carter)