Yahoo and Nokia extend partnership

The companies deepen their relationship with a new deal that brings Nokia maps to Yahoo services and Yahoo messaging services to Nokia.

NEW YORK--Web portal Yahoo and cell phone maker Nokia announced Monday that they will extend their partnership, giving Nokia greater access to Yahoo's e-mail and messaging services and Yahoo access to Nokia's Navteq mapping technology.

Carol Bartz and Olli-Pekka Kallasvuo
CEOs Carol Bartz and Olli-Pekka Kallasvuo. Nokia

The two companies have had a partnership since 2005. Yahoo services have already been preloaded on some Nokia devices. This new partnership extends that relationship so that Yahoo's e-mail and instant-messaging services will now be integrated with Nokia's Ovi Internet platform. Nokia's mapping services, which the Finnish company acquired from Navteq, will power Yahoo's mapping service.

Carol Bartz, CEO of Yahoo, said the deal is not exclusive. Yahoo will continue to work with other cell phone manufacturers and will be integrated into other smartphone operating systems. This means that Yahoo will still be on Research In Motion's BlackBerry devices, Apple's iPhone, and even Google Android devices.

Olli-Pekka Kallasvuo, CEO of Nokia, said the deal will help the company get a stronger foothold in the U.S. market. He acknowledged that the company has been struggling in the North American market. While Nokia leads worldwide in the overall cell phone market and also in the growing segment of smartphones , it has lagged in the United States.

"We are not only selling devices, but also services associated with those devices," Kallsvuo said. "Services like navigation, location, and maps will get more mindshare. This is one step toward offering more of that and making our position stronger in this market."

Financial terms of the deal were not disclosed.

 

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