Nokia to Use Symbian in Open-Source Play

Nokia plans to give RIM, Google and Microsoft a run for their money with its $411 million acquisition of mobile phone operating system developer Symbian.

Nokia then will create an open-source OS, much as Google is doing with its now-delayed Android.

The deal -- announced Tuesday -- will pit Nokia, the world’s largest handset maker, against the likes of Windows Mobile and promises to upend the mobile business model. That’s because Nokia intends to offer its open-source Symbian software royalty-free to handset makers including Motorola Inc., Sony Ericsson and Samsung.

"This is seen as a strategic move to stave off competition from Apple, RIM, Windows Mobile, upstart LiMo (Linux Mobile Foundation), and Google's Android and to position Nokia as more than a Mobile Phone Company,” said James Brehm, a senior consultant for Frost & Sullivan. “Nokia will now own relationships with all of the big five handset manufacturers and a tremendous developer ecosystem."

ABI Research Director Kevin Burden said Nokia might be planning to position the Symbian platform for mid-tier devices with another platform powering high-end devices. Sony Ericsson does this now, he pointed out.

Nokia already owned a 47.9 percent share in Symbian. It bought the remainder from Panasonic, Ericsson, Sony Ericsson, Siemens and Samsung. The acquisition should close in the fourth quarter. All Symbian employees will become Nokia employees, Nokia said.

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