Nokia and Yahoo announced a worldwide partnership to work together on mapping, email and chat services, as the two companies attempt to boost their respective positions in the wireless market.
Under the new deal, Nokia will provide Yahoo with mapping and navigation services, while Yahoo will run email and chat offerings for Nokia’s Ovi platform.
“It’s a great example of an approach to partnership, which is increasingly part of our DNA,” said Carol Bartz, Yahoo’s chief executive.
Nokia and Yahoo said they will start by giving Ovi users access to select Yahoo services.
“This fits well with two companies with key complimentary strengths,” said Olli-Pekka Kallasvuo, Nokia’s chief executive. “We expect this alliance will be crucial in growing Ovi services on mobile and the Web.”
For Nokia, the alliance brings added benefits from Yahoo’s strong brand awareness in North America. The Finnish phone maker has been struggling to build recognition for Ovi, particularly in the U.S. It hasn’t had much success getting wireless carriers to push its Internet products after spending more than $10 billion to build the business.
Meanwhile, Yahoo, which has fallen behind rival Google, will be able to focus its resources on consumer experience while benefiting worldwide from Nokia’s chat and messaging services.
Both beleaguered companies hope the partnership will improve their standings in the wireless industry, especially in the emerging markets.
The role of online services and software has jumped sharply since Apple and Google entered the industry, forcing traditional handset makers like Nokia, Samsung and Motorola to beef up their offerings to compete in the smartphone sector.
Nokia and Yahoo said the new services will launch later this year and be available worldwide in 2011.