It’s being rumoured that Nokia will be launching an online music store at the end of August which is set to rival iTunes.

Last year Nokia acquired mobile music service company Loudeye for $60m. Loudeye is a global leader of digital music platforms and digital media distribution services. Existing Loudeye services have over 1 million music tracks available for download and it is expected the Nokia music service will offer a similar amount of tracks for download.

The service will probably work in a similar way to the Apple iTunes service, where music is downloaded to a PC and synched across to a connected mobile phone.

It is expected that the service will be announced at an event at the Ministry of Sound on August 29th, where Nokia will also be announcing some new music handsets.