In an unprecedented move, Microsoft reportedly offered Indian phone makers its Windows operating system, sans the license fee, the Times of India reported Thursday.
According to the report, two Indian manufactures inked deals with Microsoft to make devices with the Redmond giant's OS--on the condition that the license fee was waived. While the names of the companies were not mentioned, the report did hint at two manufacturers, Lava and Karbonn, which joined the Windows bandwagon at the Mobile World Congress in Barcelona last month.
"For our planned Windows Phone handsets, we are not paying Microsoft a license fee. The company is obviously exploring new models for Windows Phone. It must have realized that the older model where it licenced the OS did not work out well, even with Nokia's support," a senior executive of an Indian phone manufacturing company said, according to the Times of India.
Nokia was charged between $20 and $30 for each Lumia in 2011, which is when the manufacturer was exclusively making Windows phones, according to Think Digit.
Windows Phones account for less than 10 percent of the Indian market, which is largely dominated by Android-based phones, according to The Inquisitor. Yet research firm International Data Corporation (IDC), which estimated the market share of devices, anticipates improvement in the share of Windows phones if Microsoft extends the waiver to other small manufacturers.
According to The Times of India, an IDC market analyst stated that "If Microsoft has decided to waive the licence fee for Windows Phone, it is great news for local phone makers. Local phone makers are comfortable with Android. They are still not sure of the appeal of Windows Phone. If the OS is free to use, they will feel more confident while experimenting with it in the market."
However, a Microsoft spokesperson refused to reveal details when contacted.
