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Microsoft pays $1 billion to Nokia to get support

Posted: 11 Mar 2011 ?? ?Print Version ?Bookmark and Share

Keywords:Windows OS? Microsoft-Nokia deal? Nokia handsets?

A Bloomberg report quoting unidentified sources claims that Microsoft has commissioned cellphone maker Nokia to promote and develop handsets running the Windows OS. The software giant is reportedly paying Nokia more than $1 billion for the service.

Intel CEO Paul Otellini had hinted that Nokia had been paid to jump ship when he recently discussed the departure of Nokia from an alliance with Intel called MeeGo. MeeGo is a Linux-based open source mobile OS targeted at a range of mobile devices.

Otellini said at the time that Nokia's CEO Stephen Elop had concluded that Nokia could not "afford" to stay with the MeeGo project after receiving offers to switch from both Microsoft and Google.

Under the terms of the deal between Microsoft and Nokia that is due to run for more than five years, Nokia will pay Microsoft a royalty on each copy of Windows used in its phones. But the benefit will come in terms of the saving on software R&D, Bloomberg said. The final contract has yet to be signed, the report added referencing one of its unnamed sources.

- Peter Clarke
??EE Times

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