Sony Ericsson is reported to be on the verge of announcing a deal with Omnifone for the launch of a mobile music download service intended to compete with Nokia’s new ‘Comes With Music’ service. According to a CNET report, the tie-up has secured music catalogues from the ‘big four’ record labels; EMI, Sony BMG, Universal and Warner Music Group. British firm Omnifone already offers Vodafone UK users unlimited access to mobile music downloads for £1.99 a week, although the business model does not allow users to keep the music once their subscription ends. Its service is also available via partners 3 Hong Kong, Telenor (Sweden) and Vodacom (South Africa). Earlier this month the Financial Times reported that Sony Ericsson was working on an unlimited music download service for its mobile phones, believed to be an enhancement of its ‘PlayNow Arena’ offering.

A potential Sony Ericsson/Omnifone deal is being regarded as a challenge to Nokia’s highly anticipated Comes With Music service. Unlike many rival mobile offerings, Comes With Music will allow users to keep all the music they have downloaded, even after the one-year subscription period has ended. Universal, Sony BMG and Warner have signed deals with Nokia to offer their tracks on the service, and Nokia is reportedly confident of having EMI on board by the time of its premier launch in the UK. According to a Reuters report yesterday, Nokia’s first phone model (5310 Xpress Music device) with free access to the music service is scheduled to go on sale on October 17 in the UK via retailer Carphone Warehouse.