New York – Microsoft (NASD: MSFT) will pay Nokia (NYSE: NOK) more than $1 billion
over five years to use its Windows operating system software on Nokia
smartphones, Bloomberg reported, citing two people with knowledge of the deal’s
terms. Last month, Nokia announced it would discontinue its Symbian mobile
operating system, and use Microsoft’s software on future smartphones.

The deal
also will reportedly see Nokia pay Microsoft a fee for each copy of Windows
used on its phones, but those costs are expected to be offset by Nokia’s
shelving of development on Symbian.

Microsoft is expected to make a profit on
the deal via the per-unit payments — even after the $1 billion in payments to
Nokia — a source told Bloomberg.



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(DMW previous coverage)