Microsoft chief executive Steve Ballmer has reportedly decided not to offer its mobile operating system for free, and plans to continue charging licensing fees from handset makers.

Unlike other players like Google and Nokia, Microsoft intends to stick to its present stand of charging high licensing fees for the use of the technology in mobile phones. There has been a certain amount of pressure on Microsoft throughout this year, as Google and Nokia have rolled out royalty-free technology like Android to the handset makers.

In what might be seen as an arrogant comment, Ballmer has reportedly responded, "We do," when asked whether Microsaoft planned to continue charging licensing fees. He added: "We are doing well, we believe in the value of what we are doing."

Raising doubts over Google’s motives, Ballmer questioned why Google would invest a lot of money and try to do a really good job if it wasn't going to make money. He claimed that most operators and telecom companies are cynical about Google.

According to Ballmer, Google may be trying generate advertising revenue through the promotion of its services on mobile phones. Discussing Nokia, Ballmer questioned whether Nokia is really open sourcing or just using the Symbian operating system.

Microsoft has failed to make a mark in the smartphone OS segment, grabbing only a meagre market share of about 10 per cent. It charges a fee of somewhere around $8 to $15 per phone, CIOL reports.

Ballmer clearly denied market speculation that Microsoft planned to build a phone. X