Nokia and Yahoo are to pool their respective online tools as both firms look to regain ground lost to rivals. Under a new partnership unveiled in New York on Monday, the two firms are to share email, instant messaging and mapping services across both PCs and mobile devices. The deal appears to address weaknesses in both current portfolios. Leveraging its strength in mapping, Nokia will become the exclusive provider of Yahoo’s maps and navigation services, which will now feature ‘powered by Ovi’ branding.  In return, Yahoo – the stronger player in email and messaging – will take responsibility for Nokia’s Ovi Mail and Ovi Chat services, which will be branded as ‘Ovi Mail / Ovi Chat powered by Yahoo!.’ The two companies also plan to develop what they term an ‘ID federation’ between their respective services, allowing people to use their Ovi user IDs across select Yahoo properties. The first co-branded service offerings are expected to become available from the second half of 2010, with global availability expected in 2011.

Both firms hope that the new partnership will allow them to better compete in online and mobile-based services with rivals such as Google and Apple. “Delivering great user experiences – both online and on your mobile – is what this alliance is all about,” said Nokia CEO Olli-Pekka Kallasvuo. “We’re enabling millions of Yahoo! customers in key markets including North America to discover the unique capabilities that Ovi Maps brings. Similarly, Yahoo!’s online expertise will bring exciting mail and messaging enhancements to millions of Ovi Mail customers across almost every country around the world, many of whom will have their first Internet experience on their mobile.” The deal builds on an existing five-year alliance between the two firms. “It feels like two brands that have both lost a lot of relevance in the markets that are coming together to try to make something meaningful,” Michael Gartenberg, an industry analyst with Altimeter, told the Financial Times.