Mobile phone giant T-Mobile has teamed up with US firm ALK Technologies to launch CoPilot Live - a new satellite navigation system based on two of its mobile handsets.
The two devices, the SDA smartphone and larger-screen MDA Compact, both use Microsoft's Windows Mobile operating system.
Connected via bluetooth to a windscreen mounted satnav receiver, CoPilot software transforms both into an advanced satellite navigation and route planning system.
In addition to satellite navigation, CoPilot offers realtime location tracking, messaging and the ability to send new destinations to the driver.
This is of particular interest to businesses and mobile professionals and works by using a secure web site to track the location of staff on the road at any one time.
Brian McBride, managing director of T-Mobile UK, said: "The lucky few have been able to enjoy satellite navigation in their cars or boats.
"Now it's coming to your TMobile. In a few years, what was the privilege of the few can be taken for granted by all of us. It's another demonstration of the power of mobile as we enter the mobile internet age."
Simon Ainslie, T-Mobile's director of sales, also said: "The Windows Mobile-based MDA Compact and SDA bundled with CoPilot Live open up an exciting new functionality for our customers - not just how to stay connected while on the road, but also how to navigate your way to your important business meeting."
He added: "The addition of CoPilot Live to the MDA Compact and SDA strikes a real chord with anyone who has ever been lost on the way to a Saturday night party, dinner with friends or on the way to a wedding."