Microsoft to cut license fees for Indian makers of Windows Phones

Microsoft would not charge at least two Indian smartphone makers for placing Windows Phone on devices. This would allow the company to better compete with Android. There have been rumors before that Microsoft wanted to cut the license fees.

Microsoft announced at the end of February that nine device manufacturers will release new Windows Phones, including big names such as LG, Lenovo and ZTE, but also lesser-known such as the Indian companies Lava and Karbonn. The latter is incidentally a dualboot smartphone with Windows Phone and Android.

According to sources from The Times of India, Microsoft had been in talks with Lava and Karbonn since late last year to put Windows Phone on affordable devices. However, the negotiations were only successfully concluded after Microsoft agreed to abolish the license fee. Until now, the manufacturers released Android phones, for which they already do not have to pay. The fact that Windows Phone is now free to them shows that Microsoft is willing to try new strategies to gain market share.

“The company is clearly exploring new business models for Windows Phone,” a source within a telecom manufacturer told the Indian newspaper. “The company understands that the old model with operating system licenses didn’t work out well, even with Nokia’s support.”

Even Nokia reportedly had to pay Microsoft up to $30 per Lumia device. It is unclear whether the larger manufacturers such as ZTE, LG and Lenovo no longer have to pay licenses, but similar agreements have probably been made to convince them. Rumors about the cancellation of license fees were already circulating at the end of 2013. Microsoft would also experiment with free versions of the desktop version of Windows.