Microsoft and BT get together to target mobile users

BT's CEO, Sir Peter Bonfield, and Microsoft chief, Bill Gates, have deepened their relationship with a deal to jointly develop mobile devices based on the Windows CE operating system.

The deal will also see Microsoft and BT providing services and developing applications for wireless devices to enable the access of Internet and personalised content.

The two companies have also announced their intention to set up an open industry forum on the development of applications for the third generation and Global Packet Radio System (GPRS) arena. They are to commit "substantial resources" to the collaboration.

This news comes hot on the heels of Palm Computing and Symbian declaring that they are in talks to develop interoperable mobile applications. This earlier move was widely seen as an attack on Microsoft's ambitions in the wireless market.

BT says the first services and products from this alliance will be launched next year.