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Nokia CEO Stephen Elop
"I'm gonna make him an offer he can't refuse."

Nokia ruffled more than a few feathers when it announced that it would be shacking up with Microsoft when it comes to smartphone operating systems. Feeling the heat from smartphone operating systems like Apple's iOS and Google's Android, Nokia is winding down its efforts with MeeGo and Symbian in order to embrace the nascent Windows Phone 7 (WP7) operating system.

Now, a new report from BusinessWeek suggests that Nokia was offered a sweet deal to go with Microsoft’s WP7 operating system over the rival Android OS. BusinessWeek says that Nokia will receive roughly $1B as a part of a 5-year deal with Microsoft.

Microsoft, of course, will also profit handsomely from its $1B investment if Nokia's WP7 offerings take off in the marketplace. Unlike with Google's freely available Android OS, Nokia will pay Microsoft a royalty fee for each WP7 handset that it sells.

“This gives Microsoft scale and allows Nokia to rip out costs,” said Colin Gillis, an analyst at BGC Partners in New York, who recommends buying Microsoft shares. “Microsoft is getting the platform boost.” 

Although $1B USD is a nice motivator to adopt WP7, Nokia's Stephen Elop claims that Nokia would have gotten lost in vast sea of me-too Android devices, and that the Microsoft partnership gives it a chance to shine. “A decision to go with Windows Phone creates a very different dynamic. Windows Phone is a challenger. It becomes a three-horse race,” said Elop according to Mobile Beat.

Nokia’s Symbian operating system has been under a constant assault from Android. Android overtook Symbian as the world’s best-selling smartphone operating system in Q4 2010 (33.3 million units versus 31 million units).

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RE: is this any surprise?
By someguy123 on 3/8/2011 12:08:34 AM , Rating: -1
Entering a market already dominated doesn't necessarily negate the fact that they're attempting to take over, or at least become a major player of said market.

Android being free is anti-competitive because it requires resources that very few have to make a reality. It's a completely subsidized platform and is gaining massive adoption, in part due to good functionality, but mainly due to being functional and free. I'm not even sure if google has anything implemented currently within android to make money through other means.

Other platforms may have already achieve semi-monopoly status, and free software may promote competition through other means when it comes to hardware, but that doesn't excuse google from pushing some pretty anti-competitive tactics in the software space.

RE: is this any surprise?
By Taft12 on 3/8/2011 12:06:30 PM , Rating: 2
Android being free is anti-competitive because it requires resources that very few have to make a reality.

What?? You and I have the same resources available to us that Google used and is using to build Android!

This is why the GPL is a good thing. Don't reinvent the wheel when you already have it sitting there right in front of you.

Operating systems are commodities now. Save your development resources for filling niches. That's the way the software world works today and we are all so much better off for it.

RE: is this any surprise?
By someguy123 on 3/8/2011 1:54:45 PM , Rating: 2
Yes it's open source but that doesn't mean you or I have the man power to produce a fully functional phone OS.

It's just insane that google gets love for this merely because it's open source. How are people going to compete with free software developed through a massive company like Google? It is the very definition of anti-competition when it comes to software, especially since they're not only developing, but also actively pushing and distributing.

If you appreciate what this does for the industry, that's another thing, but to deny that this stifles competition is ridiculous.

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