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Last Updated: Wednesday, 29 August 2007, 15:28 GMT 16:28 UK
Nokia launches web music service
Nokia N90 mobile
Network providers already offer music for existing Nokia phones
Mobile phone maker Nokia has launched a music and games download service, challenging both rival handset makers and mobile phone network providers.

The Nokia Music Store should make it easier for customers to use Nokia handsets as music players, making them stronger rivals to Apple's iPhone.

It will also make Nokia a rival to the sellers of its phones, the network providers, which also offer downloads.

Nokia has also unveiled handsets better suited as multimedia players.

Nokia predicts that the market for such phones, which can be used to surf the web, play music and games, and even make calls, is set to grow by 50% to 120 million units this year.

"Looking into the future, we will deliver great devices, combined with compelling experiences and services, to make it easy for people to unlock the potential of the Internet," said Nokia's chief executive Olli-Pekka Kallasvuo.

Nokia's music store will be part of the company's Ovi umbrella brand, which gives consumers access to all of Nokia's online content.

The store will charge 1 euro ($1.40; 70p) per single track and from 10 euros for an album, while games will cost between 6 and 10 euros.

The BBC's Rory Cellan-Jones examines the new service

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