The deal indicates a cooling down of the rift between the two companies, who have refused to collaborate in the past due to Nokia’s fear of turning the mobile industry into a computer service.
The partnership will produce a mobile music platform which will allow wireless operators to provide their services to consumers who will be able to transfer songs from a PC to a mobile phone and vice versa. Microsoft will also offer software that coordinates e-mail, calendar and contact information between future Nokia phones and computers.
As a further part of the agreement, the companies will aim to develop a plug-in that will enable Windows Media Player to store music files in Advanced Audio Coding format and OMA Digital Rights management. A locker device for these files will also be provided, making purchases permanent.
Music bills will appear on regular monthly phone bills, removing the need for a payment plan, in the hope of encouraging consumers to buy more songs from internet music stores.
Joining the alliance is internet media data provider Loudeye, who will supply its digital music archive and infrastructure to the new business that is expected to make cell phones a usable alternative to music players like Apple’s iPod.
