Microsoft wins major mobile deal

Microsoft's mobile operating system got a massive boost today with news that Cingular - the second largest US network - is to use the software.

It is thought the phones will be made by UK-based start-up Sendo, of which Microsoft owns 10 per cent.

The tie-up represents the first commercial airing of the Redmond giant's Smartphone system (which was code-named Stinger).

It's been looking to increase the number of device manufacturers using it by helping those that already use the Pocket PC operating system to build smartphones.

But to date, Microsoft is yet to show-off its Smartphone offering in a commercial environment.

It also faces stiff competition from Symbian, which does have smartphones in the shops. The company's shareholders include the mighty Nokia (21 per cent), Ericsson/Sony Ericsson (21 per cent), Motorola (21 per cent) and Psion (28.1 per cent).

Paul Cockerton, head of communications at Symbian, was not impressed by Microsoft's latest announcement. He said: "It sounds quite good but it's actually one operator, with one small UK hardware maker delivering a smartphone at sometime in the future.

"Microsoft has been trying to convince these companies (Symbian shareholders) to come over to the Stinger platform."

Cockerton claimed these attempts have failed. "Nokia is very committed to Symbian," he said.

But analyst and mobile specialist Dale Vile of Quocirca was less convinced. He told silicon.com: "Nokia's pretty confused at the moment."

He cited products such as the 5510, which despite its MP3 function failed to take off. "It's testing around for the right kind of product and there's still a lot of fluidity behind the scenes."

Andy Brown, research manager of mobile computing at IDC, painted a more black and white picture. He said: "It's quite simple - Microsoft needs to persuade those backing Symbian to come over. Unless something gives, Microsoft will find it hard to break in."

The Cingular deal follows an announcement made last week with Deutsche Telekom which will see the German telco and Microsoft work together to produce next generation mobile phones loaded with MSN internet services.