Nokia (NYSE: NOK) may be the dominant handset-maker worldwide, but it too apparently feels the need to develop an iPhone wannabe, and is currently working on its first touchscreen phone, codenamed “Tube,” according to InfoWorld. The sighting comes a week after AT&T (NYSE: T) said ”within months” all of its smartphones, including the iPhone, will be running on 3G, and other reports are surfacing today, saying that WSJ’s Walt Mossberg says the 3G iPhone will be here in two months.

Competition in the handset business is fierce with Apple (NSDQ: AAPL) setting the new bar for ease-of-use, attractiveness and the ability to use multimedia content. InfoWorld said Nokia’s “Tube” was shown in a slide at the Evans Data Developer Relations Conference in Redwood City. The touchscreen device uses a lot of graphics and will allow photos to be easily uploaded. There’s no date for when the phone will be shipped. Of course, Nokia likes to point out that its not a close race. Since the launch of the iPhone in June, Apple has shipped up to 6 million devices, and Nokia ships that many overnight, the company said.

But perhaps, the 3G iPhone will be a closer match, offering users the ability to consume content much faster. Last week, AT&T Mobility’s CEO Ralph de la Vega, said that within months all of the carrier’s smartphones will be running on the 3G network. When asked to clarify that statement to see it included the iPhone, he essentially said yes. CNET reports today that Mossberg recently said publicly that the iPhone “will be 3G in 60 days,” which lines up nicely with Apple’s Worldwide Developers’ Conference and when the phone’s App store goes live. 

• @ CTIA: AT&T Hints 3G iPhone ‘Months’ Away; Sprint’s Not A Threat; Android Is Good