Microsoft will pay Nokia more than $1 billion in its Windows Phone 7 deal, Bloomberg reported Monday.
The report cites unnamed sources with knowledge of the deal. Nokia will pay Microsoft a fee for each copy of Windows Phone 7 installed on its handsets, according to Bloomberg, and the agreement lasts for more than five years.
In our February interview with Stephen Elop at Mobile World Congress in Barcelona, Nokia's chief executive and the former president of Microsoft's Business division said the deal was worth billions of dollars. This is what Elop said:
"Windows Phone is a royalty-bearing product, and we will be paying royalties to Microsoft in recognition for its software development work.
At the same time, where that would be a normal OEM [original equipment manufacturing] relationship, there are many other elements of this. We are contributing services assets, all sorts of know-how and the chance to help Windows go global.
We are contributing the opportunity to shift a very substantial part of the market to Windows Phone. ... We could have shifted it over to Android. There is value associated with that decision alone.
There are B's, not M's, of value being transferred to Nokia."
Dania Ramirez Lucy Liu LeAnn Rimes Adrianne Curry Jennifer Gimenez
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