Citing “two people with knowledge of the terms,” Bloomberg is reporting that Microsoft will pay Nokia to promote and develop Windows Phone 7 handsets. The payment is part of the recent agreement between the two companies.
According to the Bloomberg sources, the payment was one of the reasons that convinced Nokia to opt for Windows Phone 7 over Google Android. Another was the smaller number of manufacturers using Microsoft’s mobile OS may give Nokia a better chance to stand out.
While neither company confirmed the rumour, a Nokia spokesperson did indicate that the final contract had not yet been signed but that Nokia would share further details once negotiations are complete.
Nokia, for its part, will still pay Windows Phone 7 license fees to Microsoft. Essentially, Microsoft appears to be bearing much of the initial costs but could end up benefiting later should Nokia’s Windows Phone 7 devices become a hit.