Nokia Looks to Windows Phone 7

Watch out iPhone and Android, here come Nokia.

Granted such fighting words probably aren’t causing anyone in Silicon Valley to lose any sleep, but mobile phone giant Nokia, to date an also-ran in the U.S. market, is talking boldly about its new alliance with Microsoft (NASDAQ: MSFT).

“Nokia and Microsoft will combine our strengths to deliver an ecosystem with unrivaled global reach and scale. It’s now a three-horse race,” said Nokia’s CEO and president, Stephen Elop.

Under the terms of the deal — not all of which have been worked out yet — Nokia will adopt Microsoft’s Windows Phone 7 as its principal smartphone operating system. In return, Nokia will “help drive the future of Windows Phone,” the two companies said in a joint statement.

Nokia said it plans to contribute its expertise in hardware design and language support. Additionally, because of Nokia’s global marketing and distribution infrastructure, as well as billing systems already in place, the agreement promises to make Windows Phones available at a broader number of “price points, market segments, and geographies.”

“The partnership announced today provides incredible scale, vast expertise in hardware and software innovation and a proven ability to execute,” said Microsoft CEO Ballmer.

Check out Enterprise Mobile Today’s report on the big mobile deal.

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Nokia: Windows Phone 7 Will Anchor Its Smartphones