Carphone Warehouse and AOL Europe are to launch a co-branded internet portal accessible through mobile networks as well as PCs and television.
Mviva is to be launched in five European countries this summer including the UK.
AOL Europe has paid the retailer $25 million (£17 million) to acquire 15% of the service and will provide content and marketing. In return, AOL's fixed line content will be promoted through Carphone Warehouse's network of 800 shops.
Mviva will be installed on internet-enabled phones and will be network compatible. It will offer a range of information and e-commerce services on launch from over 50 third-party providers as well as e-mail and specific AOL services including instant messaging. Revenues will come from advertising, carriage and transaction costs.
The number of web enabled mobile phones in Western Europe is estimated to grow from one million in 1999 to 220 million in 2004. Charles Dunstone, Carphone Warehouse's chairman and chief executive, said mobile phones would become an increasingly important way of accessing the internet.
"Carphone Warehouse has the pan-European distribution network to make Mviva a leading pan-European internet portal while AOL injects all the advantages of its world leading infrastructure and content as well as online advertising support and the opportunities for cross-promotion," he said.