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The YouTube deal will allow users to view YouTube clips via a Web browser on Nokia handsets through the new YouTube Mobile site, which is set to be launched soon.

'Internet services are getting mobilised and drive the value for the whole ecosystem,' Nokia's Chief Technology Officer Tero Ojanpera told Reuters at 3GSM, the world's biggest wireless communications trade show.

'We are going to see dozens of announcements like this from different players in the market,' Ojanpera said about the partnerships between young Internet companies and established telecommunications operators and cell phone manufacturers.

Bengt Nordstrom, chief strategy officer at telecoms and technology consultancy inCode, said the main theme of 3GSM this year is the influence of the Internet on the mobile industry.

Nokia also unveiled new mid-priced phones and models targeting business users to strengthen notorious weaknesses in the portfolio of the world market leader.

'We are strong in the low end and we are at least as strong in the high end. Our mid-range is not where we would like it to be,' Kai Oistamo, head of Nokia's mobile phones unit, told Reuters in an interview at the 3GSM mobile telecoms trade show.

Nokia also took aim at the potentially lucrative real-time navigation market, which it considers crucial to its core business, launching a new smartphone with fast data connections, maps and full navigation software.

The new 6110 Navigator is expected to begin shipping in the second

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quarter with an estimated retail price of 450 euros (£299) before subsidies or taxes, it said, adding the cost would include regional maps and full navigation software.

It will also be one of the first Nokias to offer faster mobile data transmission speeds over 'super 3G,' or HSDPA (High Speed Downlink Packet Access) technology.

The 6110 will use Navteq Corp. maps, a Nokia spokesman said. Nokia will offer those as well as maps from Tele Atlas NV on the smart2go navigation and mapping service it unveiled last week.

On that service, mobile users can put maps and route - finding services on cellphones for free, but will be charged for more advanced services, such as voice commands and turn-by-turn car navigation.

'The 6110 is the most innovative product on show from Nokia here,' said Ben Wood, consultant at CCS Insights.

'Having staked a claim to the embedded GPS space, it has upped the ante with its competitors both inside and outside the industry with this product.'

Standalone route-finder firms such as European market leader TomTom BV have said they do not see mobile phones as an immediate threat and they could even create a new opportunity to sell route-finding software to mobile users.

'They are releasing a unique handset for that purpose and it should be an interesting and important field for Nokia in the future,' said Jari Honko, an analyst at eQ Bank in Helsinki.

Among the new models from the Finnish-based company is the 3110, which will retail for 150 euros, before subsidies and taxes and a mid-range N77 multimedia phone for watching television broadcasts on the go.

Nokia also announced three models aimed at business users - the E90 Communicator and the E65 slider phone, as well as an updated version of the E61 phone, which has been pitched as a challenger to the market-leading BlackBerry of Research In Motion Ltd.

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