The software major Microsoft is buying Nokia phone business for $7.2 billion. Nokia brand will disappear from Nokia Lumia and Nokia Asha smartphones in phases.
As per the current deal, Microsoft has permission to use Nokia brand in feature phones and not smartphones such as Nokia Lumia and Nokia Asha.
Microsoft has agreed to a 10 year license arrangement with Nokia to use the Nokia brand on current Mobile Phones products. Nokia will continue to own and maintain the Nokia brand.
Under the terms of the transaction, Microsoft has agreed to a 10 year license arrangement with Nokia to use the Nokia brand on current and subsequently developed products based on the Series 30 and Series 40 operating systems.
Upon the closing of the transaction, Nokia would be restricted from licensing the Nokia brand for use in connection with mobile device sales for 30 months and from using the Nokia brand on Nokia’s own mobile devices until December 31, 2015.
Microsoft is currently building a team to set up the phone business that follows the software giant’s culture. Stephen Elop, who will move from Nokia to Microsoft, will steer head the transition of Nokia phone business.
The software giant promises that there will be more product development and new products in coming months.
Microsoft will gain from the usage of Windows Phone OS platform in the growing smartphone ranges. It will also continue to work with other phone OEMs.
Mobile phones users will benefit from a much bigger brand support. Microsoft is known for adding value to its eco-system. It will enhance its support to developers.