Microsoft to pay Nokia more than $1 billion in deal

According to the information from two different sources of Bloomberg, Microsoft will pay more than $1 billion to Nokia for promotion and development of a smartphone platform with Windows Phone. The amount was intended to convince Nokia to choose  Windows Phone 7 instead of Android. At the same time, the Finnish company will pay a licensing fee for each phone sold to the Americans, but this amount will be justified by reduced costs of the Nokia research and development of new services. The contract between the two companies have not yet been signed, but according to some sources, it’s duration is over 5 years and will allow Microsoft to use patents of Nokia.

As part of the transaction platform, Microsoft will use the navigation services of NAVTEQ, as to them will be added and localized advertising. This will bring additional revenue for Nokia, which will receive part of their revenue. The two companies will share and benefit from search and advertising.