comscore Nokia to pay Microsoft more money than it receives for choosing Windows Phone for the rest of the agreement period
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Nokia to pay Microsoft more money than it receives for choosing Windows Phone for the rest of the agreement period

Till now Nokia had been receiving $250 million every quarter from Microsoft as platform support fee for opting for Windows Phone over Android. The two companies had agreed that Microsoft will pay Noki

Till now Nokia had been receiving $250 million every quarter from Microsoft as platform support fee for opting for Windows Phone over Android. The two companies had agreed that Microsoft will pay Nokia a platform support fee and Nokia has an annual minimum software royalty commitment, which it has to pay Microsoft quarterly. Till now the platform support fee had exceeded the royalty payment Nokia had to pay, which resulted in Microsoft paying $250 million per quarter. However, it turns out that the agreement was made in such a way that now Nokia’s payments to Microsoft will exceed what it gets from them for the remainder of the agreement. In other words, Nokia will pay Microsoft more money than it receives for opting for Windows Phone every quarter for the rest of the agreement period. Also Read - Garena Free Fire codes for today, December 4: How to redeem, avail diamonds, skins, characters, more

Nokia insists that the payments it receives from Microsoft during the lifetime of the agreement will slightly exceed what it pays them as software royalty. The company has not revealed the duration of the agreement. Here’s the relevant excerpt from the earnings result: Also Read - "Mobile payments exceeded ATM cash withdrawals for the first time" in India last year: PM Modi

Over the life of the agreement the total amount of the platform support payments is expected to slightly exceed the total amount of the minimum software royalty commitment payments. To date the amount of platform support payments received by Nokia has exceeded the amount of minimum royalty commitment payments to Microsoft. Thus for the remainder of the life of the agreement the total amount of the minimum software royalty commitment payments are expected to exceed the total amount of the platform support payments.
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  • Published Date: January 24, 2013 5:45 PM IST



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