Nokia and Microsoft set to make billions from Windows Phone agreement

The Nokia and Microsoft partnership to create a new global mobile ‘ecosystem’ has been finalised. The Nokia Windows Phones will aim to compete properly with the iPhone and the Android platform.
The companies said they are already “collaborating on a portfolio of new Nokia devices” i.e. making some phones.
“Our agreement is good for the industry,” said Steve Ballmer, CEO of Microsoft. “Together, Nokia and Microsoft will innovate with greater speed, and provide enhanced opportunities for consumers and our partners to share in the success of our ecosystem.”
Nokia will deliver mapping, navigation, and certain location-based services to the Windows Phone ecosystem. It will also deliver in areas such as imaging, hardware design and language support.
Microsoft will provide Bing search services across the Nokia device portfolio and bring to the table other assets/skills such as productivity, advertising, gaming, and social media.
The combination of navigation with advertising and search will deliver new ad revenues for both companies.
On the app side of things the deal means the two firms will open a new Nokia-branded global app store. Developers will be able to publish and distribute apps through a single developer portal to the hundreds of millions of consumers that use Windows Phone, Symbian and Series 40 devices.
In terms of money changing hands, Microsoft will receive a running royalty from Nokia for the Windows Phone platform. These royalties will be substantial, i.e. likely to be in the billions rather than the millions. Nokia is smiling too. “Nokia will receive payments measured in the billions of dollars,” said the company in a statement.