Rumors  of a Nokia phone running Android stepped up this week. While at first glance it seems unlikely that Microsoft would continue to support this project once its acquisition of Nokia is complete, there is actually a scenario where it might make sense for Microsoft to try out an Android phone.
For Microsoft to accept a Nokia Android phone, it would have to first conclude that the point of Windows Phone is not to earn revenue from licensing the OS but to earn revenue from the various Microsoft services and products that run on the phone.
There has been increasing pressure on Microsoft to forgo the licensing fee  given that most OEMs likely to use Windows Phone also already sell Android phones and the Android OS doesn’t have a license fee. Since Windows Phone already has some downsides, namely its lacking app catalog, the licensing fee only makes it less attractive.
If Microsoft acknowledges that the licensing fee is holding it back, a Nokia Android phone starts to make sense. Nokia could use Android in much the same way Amazon does on the Kindle. A Nokia Android phone could integrate with and preload Microsoft products and services like Bing, Skype, Office, and Internet Explorer. Buyers of the phone could use any apps from the extensive Android app catalog – a big benefit over Windows Phone which is often criticized  for lacking many popular apps.
Many experts think that Microsoft earns more  in licensing fees from Android than it does from its own Windows Phone. Under Microsoft's wing, Nokia might have an advantage then over competitive OEMs that have to pay Microsoft to use Android.
The result would be that arch rival Google invests in maintaining an operating system that Microsoft piggybacks on to deliver its own revenue-generating products and services. Not a bad strategy for Microsoft.
We won’t know how Microsoft feels about the Nokia Android phone (if one in fact exists) until its acquisition of the handset maker is complete. U.S. and European regulators have approved  the deal, which Microsoft has said should close this quarter. When that happens, we'll finally find out what Microsoft thinks of the Nokia Android phone.