Microsoft Buys Nokia Devices and Services Division

[MikeB]

Nokia has announced the sale of its Devices and Services business to Microsoft for 5.44 Billion Euros in a cash deal. Since the rise of the iPhone and other SmartPhone devices Nokia had been rushing to play catchup, with little success, eventually dropping it's Symbian Operating System in favour of Microsoft.

A few years ago at MWC in Barcelona Microsoft hammered the nails in its own coffin by killing off the established market leader, Windows Mobile, just before announcing that the Windows Phone replacement would not be available for almost a year.

This left phone manufacturers rushing to the Android camp leaving both Microsoft and Nokia high and dry. Microsoft and Nokia announced a strategic partnership back in 2011 putting Windows Phone 7 on Nokia handsets. This was widely regarded as being a win-win situation for both companies, but WP7 arrived too late into the market. The Window Phone powered Nokia devices were unable to disrupt the market in a major way leaving Nokia playing second fiddle to Apple, Samsung, HTC et al.

Back even further in time Nokia, hoping to break into the location market in a big way, bought NavTeq which was fully integrated into corporate Nokia in 2011. This of course is where our interest lies. But what is happening to the mapping division?

The deal that Microsoft will sign states the following:

Microsoft will acquire substantially all of Nokia's Devices & Services business, including the Mobile Phones and Smart Devices business units as well as an industry-leading design team, operations including all Nokia Devices & Services production facilities, Devices & Services-related sales and marketing activities, and related support functions.

However Nokia retains and will focus on its three core business divisions:

NSN, a leader in network infrastructure and services; HERE, a leader in mapping and location services; and Advanced Technologies, a leader in technology development and licensing.

This means that Nokia will retain its mapping and location based services and not sell them to Microsoft. Microsoft will, however, become a strategic licensee of the HERE platform in a four year license agreement at an additional fee that is on top of the purchase price of the Devices and Services. Interstingly and slightly contradicting is the statement:

Microsoft will grant Nokia reciprocal rights related to HERE services

This is in the section regarding patent licensing and management implying that Microsoft may have some claim to patents used by Nokia.

The full press release from Nokia can be read here.

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Mike Barrett

[Snudge]

Nokia are making a comeback with the Lumia range and Win8. I've just got a bottom of the range 520 and it's a good phone and great value.
I'm not impressed with HERE Drive navigation - compared to TomTom it is very basic.

[MaFt]

[Snudge]

Well, I've just bought a Nokia Lumia 520 Sim free (currently the world's best selling Windows phone) for £115 from Amazon. You must be looking at the top of the range 925 @ £370 ?

I can buy a TomTom for less than £100.

HERE Drive does work but you have to accept the route planned by the device - TomTom allows 'go via' which I find useful.

I don't see if I can download the Speed Camera Database to my Windows phone - is that possible?

[MaFt]

[Snudge]

Ok thanks - fair enough as Win phones are currently less than 10% in UK. It's useful as a back-up if TomTom stopped working and there are some free apps for cameras although they have mixed reviews from 'great' to 'rubbish'!

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