Nokia pondered Android alliance

The shock alliance between Nokia and Microsoft nearly never happened, with the Finnish company admitting that it gave serious consideration to switching to Google Android mobile OS as opposed to Windows Phone 7.

"We spent time with our colleagues at Google," CEO Stephen Elop confessed. "It’s an attractive ecosystem, but we have a fundamental belief that it would have been difficult to differentiate ourselves within it.

"The value is going to become commoditised as a number of devices rush in, and eventually that’s going to push all the value to Google. The Microsoft option gave us the best opportunity to fight with a new ecosystem, and that allows us to offer customers the best choice."

Nokia has confirmed that as of April 1st it will be split into two different business units – Smart Devices and Mobile Phones. The former will operate Nokia’s new WP7 operations as well as Symbian smartphones and MeeGo computing, while the latter will push on with the company’s lower-price basic handset offerings.

"Our number one priority now is the evolution of the Windows Phone 7 ecosystem," Elop added. "And that includes work done by our competitors. We see this as a good thing as it will help Windows Phone 7 thrive."

Each will be independently run and file their own financial reports.