Microsoft won't be setting Windows Mobile free

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Despite Nokia and Google both offering free mobile operating systems, Microsoft has said it will keep on charging licensing fees to handset makers for its Windows Mobile OS.

The pressure on Microsoft's high licensing fees has increased over 2008 with Google rolling out free Android technology and Nokia offering to buy out others from Symbian and also make its software royalty-free.

"We do," chief executive Steve Ballmer told Reuters, when asked whether his firm would stick with licensing fees. "We are doing well, we believe in the value of what we are doing."

"It's interesting to ask why would Google or Nokia, Google in particular, why would they invest a lot of money and try to do a really good job if they make no money. I think most operators and telecom companies are sceptical about Google," he said.

Google tries to promote web surfing on phones and the use of their services such as e-mail and search so they make advertising revenue.

"In the case of Nokia - are they really open sourcing, or are they really making Symbian their own operating system? We have to wait and see," Ballmer said in an interview.

Microsoft's market share in smart phone operating systems has stayed at about 10 per cent for several years, despite the US technology giant's efforts to win more.

Microsoft charges $8 (£4.5) to $15 (£8.43) per phone, according to Strategy Analytics.

"Handset makers are sceptical of Nokia, operators are sceptical of Google, I think by actually charging money people know exactly what our motivations are," Ballmer said.

He said there was no reason to expect Microsoft to enter the mobile phone making business, like some analysts foresee.

"I do not anticipate us building a phone. Sorry, we are not going build one," Ballmer said.

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