Microsoft Will Charge for Mobile OS

Ballmer was quoted as saying: "I think there's something clean and simple and easy to understand about our model. We build something, we sell that thing ... I think it's not only in our best interests, but it's a simple model that's easy for developers, handset manufacturers, and our operator partners to deal with, to understand, and to build from."

"I think it comes down to creating value," said Kirk Parsons, senior telecommunications analyst at J.D. Power and Associates. "The fact that Microsoft's OS system offers built-in applications like Office -- featuring Word, Excel and PowerPoint -- increases the value proposition to OEMs and carriers. Whether that model will be sustainable in the long term remains to be seen."

OEMs who want to feature Windows Phone 7 Series will still pay a fee for each device

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