From the joint blog post byÂ Kai Oistamo, Executive Vice President and Chief Development Officer, NokiaÂ & Andy Lees, President, Mobile Communications Business, Microsoft,
After 10 weeks of intense collaboration, we areÂ pleased to report that Nokia and Microsoft have signed the definitive agreement for our strategic partnership to build a new global mobile ecosystem that is unlike any other. Itâ€™s a bold claim. But collectively weâ€™ve moved from intent to agreement in such a short period.Â Actually, itâ€™s even faster than we expected which makes this a perfect example of our commitment to our partnership and the speed at which we plan to move together.
As a result of our negotiations and discussions, weâ€™ve aligned our teams and assets, and clearly see the potential to change the way people use their mobile devices for the better. Hundreds of our team members are already working together toward a multi-year product roadmap and are on-schedule to deliver volume shipments in 2012 although the pressure is on for first delivery in 2011. In the coming years we will aggressively work to take Nokia products using Windows Phone to new geographies, at new price points and sharing new experiences for customers around the world to enjoy.
Full Press Release after the break.
ESPOO, Finland and REDMOND, Wash. â€“ April 21, 2011 – Nokia (NYSE: NOK) and Microsoft (NASDAQ: MSFT) today announced the signing of a definitive agreement on a partnership that will result in a new global mobile ecosystem, utilizing the very complementary assets of both companies. Completed ahead of schedule, the definitive agreement is consistent with the joint announcement made on February 11.
In addition to agreeing to the terms of their partnership, including joint contributions to the development of the new ecosystem, Nokia and Microsoft also announced significant progress on the development of the first Nokia products incorporating Windows Phone. With hundreds of personnel already engaged on joint engineering efforts, the companies are collaborating on a portfolio of new Nokia devices. Nokia has also started porting key applications and services to operate on Windows Phone and joint outreach has begun to third party application developers.
“At the highest level, we have entered into a win-win partnership,â€ said Stephen Elop, President and CEO of Nokia Corporation. â€œIt is the complementary nature of our assets, and the overall competitiveness of that combined offering, that is the foundation of our relationship.â€
“Our agreement is good for the industry,â€ said Steve Ballmer, CEO of Microsoft. â€œTogether, 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.â€
The relationship is structured around four broad areas:
1. A combination of complementary assets, which make the partnership truly unique, including:
|â€¢||Nokia to deliver mapping, navigation, and certain location-based services to the Windows Phone ecosystem. Nokia will build innovation on top of the Windows Phone platform in areas such as imaging, while contributing expertise on hardware design and language support, and helping to drive the development of the Windows Phone platform. Microsoft will provide Bing search services across the Nokia device portfolio as well as contributing strength in productivity, advertising, gaming, social media and a variety of other services. The combination of navigation with advertising and search will enable better monetization of Nokiaâ€™s navigation assets and completely new forms of advertising revenue.|
|â€¢||Joint developer outreach and application sourcing, to support the creation of new local and global applications, including making Windows Phone developer registration free for all Nokia developers.|
|â€¢||Opening a new Nokia-branded global application store that leverages the Windows Marketplace infrastructure. Developers will be able to publish and distribute applications through a single developer portal to hundreds of millions of consumers that use Windows Phone, Symbian and Series 40 devices.|
|â€¢||Contribution of Nokiaâ€™s expertise in operator billing to ensure participants in the Windows Phone ecosystem can take advantage of Nokiaâ€™s billing agreements with 112 operators in 36 markets.|
2. Microsoft will receive a running royalty from Nokia for the Windows Phone platform, starting when the first Nokia products incorporating Windows Phone ship. The royalty payments are competitive and reflect the large volumes that Nokia expects to ship, as well as a variety of other considerations related to engineering work to which both companies are committed. Microsoft delivering the Windows Phone platform to Nokia will enable Nokia to significantly reduce operating expenses.
3. In recognition of the unique nature of Nokiaâ€™s agreement with Microsoft and the contributions that Nokia is providing, Nokia will receive payments measured in the billions of dollars.
4. An agreement that recognizes the value of intellectual property and puts in place mechanisms for exchanging rights to intellectual property. Nokia will receive substantial payments under the agreement.
With the definitive agreement now signed, both companies will begin engaging with operators, developers and other partners to help the industry understand the benefits of joining the new ecosystem. At the same time, work will continue on developing Nokia products on the Windows Phone platform, with the aim of securing volume device shipments in 2012. The scale of the mutual commitment from both companies is significant and is in keeping with the intention to build a new ecosystem based on a long-term, strategic partnership.