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Nokia and Yahoo join forces on mapping, email and IM

Nokia will power Yahoo's maps and Yahoo will power Nokia's email and instant messaging services under the terms of a new alliance between the companies

Nokia and Yahoo have announced a strategic alliance around mapping, email and instant messaging services.

The deal, announced on Monday, will see Nokia become the exclusive global provider of Yahoo's maps and navigation services, under the branding 'powered by Ovi'. Yahoo will similarly power Nokia's Ovi Mail and Ovi Chat services with its own Mail and Messenger products.

In a statement, Nokia chief executive Olli-Pekka Kallasvuo said the alliance was intended to span online and mobile markets, and to let Yahoo customers in areas such as North America — traditionally a difficult market for Nokia — "discover the unique capabilities that Ovi Maps brings".

As part of the deal, Nokia and Yahoo said they plan to work on ID federation between their services. This project's first result will allow people to log in to Yahoo services using their Ovi user IDs.

According to the companies, some of the co-branded services will become available from the second half of 2010, with the rest of the world being targeted next year.