Rumor: Microsoft paid Nokia more than $1 billion to pick Windows Phone over Android

Nokia announced last month that it was switching to Windows Phone as its primary smartphone platform. The two companies have not yet reached a final agreement; that will be signed in the next few months. A new rumor has sprung up, however, suggesting that Microsoft is paying Nokia more than $1 billion as part of the deal, according to "two people with knowledge of the terms" cited by

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The part of that deal missing in this news stub (If the rumors are indeed true) are:

- Microsoft gains access to Nokia's patents
- Nokia will have to pay license fees for every Windows Phone 7 device sold
- MS and Nokia will share advertising revenue brought in by the WP7

MS didn't just GIVE away billions of dollars... but it is clear that Nokia is being rewarded for helping WP7 get a solid start into the market.

inst that really just pocket change for MS

I'm not sure how I feel about this deal. I really enjoy WP7, but it could be sold on its OWN merits.

I think I'm excited about this. My last two phone have been Nokia phones and I gotta tell you, Symbian is SHITE! And well frankly, the hardware wasn't always that great. My phone zooms in and out when it feels like. Well, actually it doesn't really matter to me though - I'm convinced never to buy a Nokia again.

Good point, Windows have some catching up to do before it gains the same status as Apple on the mobile market - it will be required of MS to be very creative on this one (almost as creative as, say, Google).

Also, MS will have to come up with something new "market-wise" that Apple have not. The recently discussed iBoobs for instance, may very possibly be a common application on WP7's.

Wonder if Nokia considered this? Wonder if this billion-$-deal was part of some kind of insurance against this.