Pay what? Royalties on Android? Nokia?
Certainly if Nokia had gone Android it would not be paying anything to MS, in contrast to what it will have to do now, i.e. pay a license for WP on its handsets, as publicly stated.
Differently from other Android phone producers, Nokia's IP would have prevented it to pay any royalties to MS. Probably MS would own IP to Nokia on its WP as Apple did and would have settled to pay Nokia royalties as well. Remember Nokia invented the smartphone segment in the first place.
In reality Nokia's latest problems are totally related to Elop, who is carrying on a MS agenda and not caring of what Nokia's fate is.
A few examples:
1) Burning Platform memo: he practically stated current Nokia products were terrible and doomed. Without having any substitute in the short term! Isn't that crazy for a company's CEO to do? And he said he wanted to sell 150m more Symbian phones? Of course nobody is buying any longer products that its own producer is saying they are doomed!
2) Nokia N9 with Maemo Harmattan. Possibly the sexyest non Apple phone out of the market according to reviews from the blogosphere. Well, Elop said it will only ship in minor markets, in limited quantity, and that even if it's successful it will have no future (interview on Finnish newspaper). In practice Elop is burning everything else apart from WP, leaving no exit strategy if WP fails. Terrible risk management (unless you are covertly still working for MS)
3) The three ecosystems joke. What third ecosystem? Nokia had the FIRST ecosystem by size, and it was zapped by Elop in February. The three ecosystems were Nokia, Apple and Android. MS was nowhere in sight. It might one day become the 7th ecosystem, or roundabouts. Bada by Samsung is already much bigger, as RIM's is, etc. etc.. This third "ecosystem" bs can only make sense to MS, which dreams of creating a third ecosystem.
The problem is that MS's Elop (ex MS head of Business and current MS shareholder) was so aggressive in carrying on the MS agenda that he killed his pray much to early. Elop is a trojan horse and MS a leech.