In an effort to better compete with more established smartphone manufacturers, Nokia Corp. (NOK)  and Yahoo Inc. (YHOO) have agreed to team up on their e-mail, chat and navigation services.

As part of the agreement, Nokia will run Yahoo's map and navigation service, while Yahoo will power the e-mail and chat programs on Nokia's Ovi.  

No financial terms of the deal were disclosed.

The two companies hope to bolster competition with the likes of iPhone maker Apple Inc. (AAPL), Research In Motion (RIMM), maker of the Blackberry, and Google Inc. (GOOG), which runs the Android system.

Yahoo investors liked the deal, pushing the stock up slightly in Monday trading, while shares of Nokia  dropped slightly.