Nokia, the world’s biggest cell phone maker has announced its decision to halt investment in a media sharing site, which was its first major Internet service push.

“Ovi Share … is planned to be maintained in its current state,” a spokesman for the company said. However, the company plans to keep the service up and running.

The service was opened to the public at the Mobile World Congress trade show in February 2008. It was based on the acquisition of U.S. firm Twango in 2007. It was seen as one of the main points of Nokia’s services.

The site is probably getting lesser traffic due to stiff competition from sharing sites such as Facebook or Yahoo Inc’s Flickr.

The phone demand is slowing and so Nokia wanted to build a new business of Internet services (games or maps?). But the company is halted further investments because of the slowdown. Probably it will look into merging the delivery of services.

Nokia has reported first-ever quarterly pretax loss for January-March. Nokia is into a big cost-cutting program and have cut 3,500 jobs so far.

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