Microsoft CEO says Nokia tie-up shows mobile allegiance.

Microsoft CEO Steve Ballmer has reiterated the company's resolve to succeed in the mobile space following its landmark deal with Nokia.

In his keynote speech at this week's Mobile World Congress conference in Barcelona, Ballmer said Microsoft's partnership with the Finnish handset giant will see Windows Phone 7 become Nokia's primary operating platform (nma.co.uk 11 February).

"It will drive volume, create innovation and new products, and will accelerate the adoption of the Windows Phone platform," he said, adding it will "help consumers get new hardware, fresh choices and amazing services".

Ballmer also announced a number of improvements to Windows Phone 7, which was unveiled last autumn, including Internet Explorer 9 support, simultaneous app use and integration with its Xbox Kinect controller.

He said the update to the operating system will help developers create sites that work on both PC and mobile.

The update to Microsoft Kinect will let Windows Phone owners use their phone as a remote control for Xbox games that use the sensor. Ballmer said Microsoft's strength across multiple platforms - PC, games console and mobile - gives it an edge on competitors. "The mobile industry is moving from a device battle to a platform battle," he told delegates.

He also said future Windows Phone devices from its legacy OEM partners, such as Samsung and HTC, will be launched later this year despite the alliance with Nokia. "Windows Phone will only work with scale and variety," he added.

Nokia CEO Stephen Elop also took to the stage as part of Ballmer's address at MWC. He told delegates that the partnership would bring additional revenues opportunities to developers and publishers.

"This is good news for developers as we can bring location services [to the Microsoft platform]," he said, adding that Nokia's mapping service Navteq would let them introduce location-based advertising.

Elop also said the relationship between Nokia and Microsoft would provide scale and the possibility of operator billing support. "This is something that's not available through other ecosystems," he said.

Ballmer told delegates that there are currently 8,000 apps on its Marketplace outlet and that more than 30,000 developers had registered with Microsoft's developer programme, while 1,000 had been actively involved.

Industry views on the Microsoft-Nokia deal

Ben Wood, principal analyst, CCS Insight

It's a clear admission that Nokia's platform strategy has faltered. Microsoft is the big winner in this deal as the tie-up will help it scale up its Windows Phone platform. But there are no silver bullets for either company given the strength of Apple's iPhone and Google's Android OS.

Jonathan Mew, head of mobile, IAB

From an advertiser's perspective it's a positive thing. Both Nokia's Ovi and Microsoft's Windows Marketplace still don't have a lot of traction with brands. With this consolidation it will be easier for brands to reach more mobile users without having to worry about developing for two different platforms.

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