25 May 2010 | Author: D. Warburton Search Copywriter

Yahoo! and Nokia strike mobile web deal

Yahoo! and Nokia have announced a mobile web deal that will see the internet giant powering Nokia's mail and chat services, while Nokia in turn provides Yahoo!'s maps and navigation services. By combining their respective strengths, the companies may be hoping to take on Google's Android mobile operating system.

The Register reports that the partnership will see Ovi by Nokia being 'powered by Yahoo!', due to the latter's experience at operating email and messenger services that Nokia is still new to.

Similarly, Nokia's acquisition of the world's largest mapping data provider Navteq in 2007 will provide a boost to an area in which Yahoo! was previously lacking, compared to competitors such as Google.

Speaking at a press conference to announce the partnership, Yahoo! CEO Carol Bartz revealed: "Many of you know we haven't been focused a lot on our maps platform. This changes that.

"By using Nokia's maps and Navteq services, it will be a much richer experience for users."

The Yahoo! boss also explained that the deal will allow Yahoo! to penetrate international markets further, particularly in developing countries where Nokia has risen to prominence by offering some of the lowest cost phones available.

"For us, this alliance has an especially important application in the developing world," Bartz said.

"Nokia has by far the strongest track record in these markets and now Yahoo! gets to leverage that position."

Conversely, Nokia only has a small market share in the United States, something that CEO Olli-Pekka Kallasvuo hopes to change with the partnership. "This is one step we are taking to change that," he said.

"As we continue to get more of our devices available through U.S. operators, we expect this alliance will be crucial in growing Ovi services across the mobile Web."

Both companies will retain their own branding for these services, which will acknowledge that they are 'powered by Yahoo!' or 'powered by Ovi' respectively. The first combined services are expected to be launched in the US in the second half of the year, with a global roll-out anticipated for 2011.