Feb 11, 2011 08:15 GMT  ·  By

Today, Finnish mobile phone maker Nokia and Redmond-based software giant Microsoft announced a strategic partnership that would result in the availability of Nokia smartphones powered by the Windows Phone operating system.

Somehow expected, the alliance will create new opportunities for both companies, while driving their market share up on the smartphone segment.

According to the agreement, Nokia would adopt the Windows Phone operating system as its principal smartphone strategy, while also aiming at innovating the platform in certain areas, including imaging, where Nokia is a market leader.

The partnership would mean a lot in various other areas as well, especially in the application development, as Nokia's content and application store will be integrated with the Windows Phone Marketplace.

As result of this agreement, Microsoft's development tools will be available for those interested in coming up with applications for Nokia Windows Phone devices.

Moreover, Microsoft will adopt Nokia's Maps and make it a core part of its own mapping services, while Nokia will have Bing powering the search capabilities of its devices.

Some highlights from the announcement would include:

- Nokia’s extensive operator billing agreements would make it easier for consumers to purchase Nokia Windows Phone services in countries where credit-card use is low, - Bing would power Nokia’s search services across Nokia devices and services, - Microsoft adCenter would provide search advertising services on Nokia’s line of devices and services, - Nokia and Microsoft would closely collaborate on joint marketing initiatives and a shared development roadmap to align on the future evolution of mobile products. - Nokia Maps would be a core part of Microsoft’s mapping services

Nokia is committed to help driving the future of Windows Phone, and announced plans to provide its expertise in areas like hardware design, language support, while being set to make the mobile OS available for a wider range of users, at more price points and in more markets.

“Today, developers, operators and consumers want compelling mobile products, which include not only the device, but the software, services, applications and customer support that make a great experience,” Stephen Elop, Nokia President and CEO, said at a joint news conference in London.

Nokia and Microsoft will combine our strengths to deliver an ecosystem with unrivalled global reach and scale. It's now a three-horse race.”

In an open letter, he and CEO Steve Ballmer, Microsoft, noted that they plan on bringing other mobile OSes to their knees, overcoming any challenges, and working together to succeed.