Bloomberg: Microsoft to Give $1 Billion Allowance to Nokia?

Microsoft and Nokia have sealed the deal to collaborate in the upcoming Windows Phone 7 mobile platform which will run on Nokia handsets. This is a give and take relationship: while Microsoft gets to ship its OS to different parts of the world, Nokia gets a decent OS for its smartphone.

Nokia will need to pay Microsoft licensing fee for each handset running WP7 and this billion-dollar stash maybe a starter kit for production.

According to Bloomberg:

“Nokia’s royalty payments will help Redmond, Washington- based Microsoft make a profit on the accord even after the payments to Nokia, one person said. Some of the payment to Nokia would be made before the company starts selling the phones, meaning Microsoft bears some upfront cost in the partnership.”

Apparently, the deal is held up “for more than five years.” So when are we gonna see a “Microkia” phone?

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