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Windows Phone deal is good news for Microsoft. But what about Nokia?

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Newscom

(Read caption) Windows Phone software will soon power Nokia phones, reps for both Nokia and Microsoft announced today. Here, Nokia Chief Executive Stephen Elop (pictured) chats with Microsoft CEO Steve Ballmer during an event in London on Friday.

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Windows Phone 7 software will soon power all Nokia phones, reps for both Microsoft and Nokia announced today, effectively making the global cell phone market a "three horse race" between the Apple iPhone OS, Google's Android, and Microsoft-Nokia. According to Nokia CEO Stephen Elop, Nokia phones will now run the Windows Phone OS, instead of the in-house Symbian OS; in exchange, Nokia would help Microsoft improve its hardware.

Bing, meanwhile, will become the default search engine on Nokia handsets.

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