UPDATE 3-Nokia and Yahoo forge maps, e-mail deal

* Nokia to power Yahoo maps, navigation

* Yahoo to provide Nokia’s Ovi e-mail service

* Yahoo shares up 1.8 pct, Nokia up 0.4 pct
(Adds executive comment, shares)

By Tarmo Virki and Yinka Adegoke

HELSINKI/NEW YORK, May 24 (BestGrowthStock) – Yahoo Inc (YHOO.O: )
and Nokia Oyj (NOK1V.HE: ) said they would team up to boost their
mobile Internet offerings, seeking to regain market share lost
to rivals like Apple Inc (Read more about Apple stock future.) (AAPL.O: ) and Google Inc (Read more about Google Stock Analysis) (GOOG.O: ).

Starting in the second half of this year, Yahoo will be the
exclusive provider of e-mail services on Nokia phones, while
Nokia will exclusively provide maps and navigation for Yahoo.

At a news conference in New York on Monday, the companies
highlighted the importance of expanding services for users in
emerging markets, for whom the phone is increasingly the
primary device for using the Web.

Nokia is the leading handset vendor in many emerging
markets, but it has struggled to grow in North America. Nokia
Chief Executive Olli-Pekka Kallasvuo said working more closely
with Yahoo would help it compete in the United States.

“Location, maps and navigation will get more mind-share,
will get more attention in the U.S. and many more users in the
North American market,” said Kallasvuo. “This is one step we’re
taking in making our position stronger in the U.S.”

The role of mobile services and software has become much
more important since Apple and Google entered the phone market,
forcing traditional handset vendors like Nokia and Samsung
(005930.KS: ) to hurry to build up their offerings.

Nokia has splashed more than $10 billion in just a few
years to build a new business by offering Internet services
ranging from music downloads to e-mail, but these have so far
won few paying customers. [ID:nLDE60J0JT].

Similarly, Yahoo has far less market cachet than Google,
whose Android mobile operating system is used by many cellphone
vendors from Motorola Inc (MOT.N: ) to HTC Corp (2498.TW: ).

“One could always say the partnering of losers doesn’t make
a winner,” said Pierre Ferragu, analyst at Bernstein Research.

“It is often true, but for Nokia, the right future that
could lead to an interesting investment case is more about
stabilizing its existing position and being successful in the
mobile platform game, riding on the back of Apple and Google
coattails only.”

Yahoo CEO Carol Bartz said the company had not invested
sufficiently in its maps offering and hoped the partnership
with Nokia would help it leap forward. “Yahoo lost its focus on
maps a couple of years ago,” she said.

Bartz said that while the Nokia deal was not an advertising
partnership, the offer of improved location and navigation
technology would help drive Yahoo’s bid to build local
advertising and marketing services for consumers.

“The ability to do local performance advertising is really
on our radar screen,” she said. “Having location combined with
great local content is what our users are looking for.”

The companies also said they would start to cooperate on
access to services, beginning by making it easy for people to
use Nokia’s Ovi user credentials across select Yahoo services.

Last month, Yahoo also struck a deal with Samsung to put
its services and software more prominently on cellphones of the
world’s second-largest cellphone company. [ID:nLDE63P14J]
[ID:nLDE61C0D8]

Shares in Nokia were 0.4 percent higher at 8.05 euros after
the news, underperforming the 1 percent firmer European
technology shares index (.SX8P: ), while shares in Yahoo were 1.8
percent higher at $15.75.

Investing

(Reporting by Tarmo Virki and Yinka Adegoke; Editing by Dan
Lalor, David Cowell and Robert MacMillan)

UPDATE 3-Nokia and Yahoo forge maps, e-mail deal