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Microsoft paid more than $1 billion to Nokia to beat Android?

According to a report on Bloombery Business Week, Microsoft will pay Nokia more than $1 billion to promote and develop Windows-based handsets as part of their smartphone software agreement.

Nokia will pay Microsoft a fee for each copy of Windows used in its phones, costs that will be offset as Nokia curtails its own budget for software research and development, said one of the people, who declined to be identified because the final contract hasn’t yet been signed. The agreement runs for more than five years, the people said.

Microsoft is willing to pay out serious money in order to not only give Windows Phone 7 some much needed market penetration, but also reign in the Android train which is fast becoming the ‘go to’ OS of choice for anyone outside of Apple. Part of the deal also gets Microsoft access to Nokia’s Ovi Maps service which is a very popular geolocation service and gives them a solid platform for location based advertising which they are looking to get into.

nokia windows phone 7 concept phones

 

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