Nokia on Tuesday announced that its new Booklet 3G netbook will be powered by Microsoft's Windows 7 operating system -- a move that should help Redmond bolster its presence in the compact computing space.

Buyers of the Nokia Booklet 3G, which is powered by an Intel Atom processor, can choose either Windows 7 Starter Edition, Home Premium, or Professional. System prices start at $810, placing the offering in the higher end of the netbook price range.

Unlike a number of less expensive alternatives, however, the Booklet 3G comes with a robust complement of hardware, software, and communications tools.

Integrated Nokia services include Ovi Suite 2.0, Nokia Music for PC, Ovi Maps, and Social Hub—which aggregates feeds from online social networks like Facebook and Twitter. Internet Explorer 8 is the default Web browser.

For connectivity, the Booklet 3G offers built-in WLAN and WWAN support for connecting to the Internet through WiFi or cellular networks. The system features 1 GB of DDR2 RAM and 120 GB of storage.

Nokia's decision to include Windows 7 on one of its first netbook offerings is the latest sign that Microsoft and Nokia are cooperating more closely in the mobile computing market. Last month, Microsoft pledged to optimize a mobile version of Microsoft Office for use on Nokia's Symbian OS-based smartphones.

Microsoft needs to promote Windows 7 adoption on netbooks, the PC industry's fastest growing market segment.

Many first-generation netbooks shunned Windows in favor of free software such as Linux in order to keep a lid on prices. The trend has resulted in a significant falloff in Windows sales in recent quarters.