Nokia on Thursday announced that its deal with HMD Global Oy, a new company formed to revive the Nokia brand in phones, has come into force and that HMD has opened for business.

HMD has today announced the completion of transactions between HMD, FIH Mobile Limited (a subsidiary of Hon Hai Precision Industries) and Microsoft, which means that HMD can begin operations as the new home of Nokia phones, under an exclusive global brand license for the next ten years.

HMD said the first smartphone products carrying Nokia's name would be launched in the first half of 2017, while the company will continue operating its Nokia-branded low-cost phone business.

"With a leading position in the feature phone market already, HMD has a significant global foothold ...from day one," HMD said in a statement.

Nokia branded feature phones remain one of the most popular choices of mobile phone in many markets around the world today and HMD will continue to market them as part of an integrated portfolio, alongside a new range of smartphones and tablets to be announced later by HMD.

Under the agreement, Nokia will receive royalty payments from HMD for sales of every Nokia branded mobile phone and tablet, covering both brand and intellectual property rights. Nokia is not an investor or shareholder in HMD.

Today also sees the return of Nokia branded phones to the Nokia website at www.nokia.com/phones. The website for Nokia phones is operated by HMD.