The Biz of Coding

Nokia to buyout stake in Symbian

by Ujwal Tickoo on June 24th, 2008

Nokia under pressure from Apple's iPhone and Google's Android efforts has announced to buy over UK based Symbian — the popular mobile phone OS maker. Nokia does not plan to control (and kill) the OS. Symbian OS will be available as open source  (quite like Android) and the licence fee paid by phone makers will be removed:

Nokia will contribute the computer code behind Symbian's operating system to a new non-profit organisation to be called the Symbian Foundation. The foundation will make the code available for nothing to software developers, in a move aimed at spurring innovation on the mobile internet.

Nokia is also handing to the foundation the code behind the S60, its user interface for smartphones. Last year, Google announced plans for its Android mobile software platform, which will also be made available on an open-source basis.

…The code held by the foundation will be made available progressively on an open-source basis to web developers from next year, and in full by 2010.

Analysts said the move would fuel innovation and accelerate the pace at which mobile software applications were rolled out. Significantly, mobile makers that are members of the Symbian Foundation will no longer have to pay royalties for use of Symbian's operating system or Nokia's S60 user interface from next year. The mobile makers pay royalties worth $5 per phone to Symbian but Nokia declined to disclose its fees. Ben Wood, analyst at CCS Insight, the research and advisory firm, said the end of royalties should cut the price of Nokia's mobiles, and therefore increase sales.

Mobile Phones using Symbian OS would get cheaper (Apple (AAPL) iPhone 3G will be $199 in US).Open source (at which Google (GOOG) is a champ) should fuel innovation…All looks like the right moves from Nokia and good for the avg consumer.

POSTED IN: Mobile Devices