Nokia, Microsoft on Track for Software Deal

By Erin Harrison April 05, 2011

Negotiations on a software deal between cell phone maker Nokia and Microsoft are on schedule, company officials said this week.

Nokia officials confirmed the two companies are on track following the Feb. 2011 agreement for Nokia to start using Microsoft software as its main platform in smartphones, according to Reuters. A large number of Nokia Windows phones should be sold in 2012, the report said.

“Negotiations have progressed very well. They will be concluded well on schedule,” Kai Oistamo, head of corporate development at Nokia, told Reuters this week.

The companies signed a non-binding agreement on Feb. 11. At the time, Nokia chief executive Stephen Elop said it would take at least a couple of months to sign a deal.

“The long negotiation process has led analysts to question whether the partnership can produce quick results. Some analysts have said talks should be concluded by end-April when Nokia plans to start talks over job cuts stemming from the agreement,” Reuters reported.

A Nokia blog post in February said Nokia will use Microsoft’s Windows Phone for its main smartphone operating system:

“The reason for this is that the smartphone battle is now a war of ecosystems rather than just devices. An ecosystem consists of devices, services, third-party providers, a strong app market and delighted customers. Microsoft, Nokia and its other partners will form a strong ecosystem to bring innovation and choice into the market.”

In an open letter issued by Nokia’s Elop and Microsoft’s Steve Ballmer, the chief executives said each company brings significant assets to the table.

“Nokia’s history of innovation in the hardware space, global hardware scale, strong history of intellectual property creation and navigation assets are second to none. Microsoft is a leader in software and services; the company’s incredible expertise in platform creation forms the opportunity for its billions of customers and millions of partners to get more out of their devices,” the Feb. 11, 2011 letter said.


Erin Harrison is Executive Editor, Strategic Initiatives, for TMC, where she oversees the company's strategic editorial initiatives, including the launch of several new print and online initiatives. She plays an active role in the print publications and TechZone360, covering IP communications, information technology and other related topics. To read more of Erin's articles, please visit her columnist page.

Edited by Janice McDuffee

Executive Editor, Strategic Initiatives

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