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Microsoft smart phone software shelved by T-Mobile
Blow for Redmond but a boost for Nokia, Symbian and co

By Reuters Reuters

Published: Thursday 15 May 2003

T-Mobile International, Europe's second largest mobile phone operator, has shelved plans to introduce a smart phone powered by Microsoft software.

"We have decided not to introduce this phone,'' a T-Mobile representative said on the sidelines of a Deutsche Telekom news conference. "For the time being, we are not pursuing this project further.'' German-based T-Mobile is a subsidiary of Deutsche Telekom.

T-Mobile announced in February plans to introduce the phone with Microsoft's Windows Smartphone software this summer in a move analysts saw as a blow to mobile handset industry leader Nokia.

But industry sources said the phone software still has "fundamental problems'' leading to high failure rates.

Microsoft was not immediately available to comment.

French mobile carrier Orange was the first company to launch a smart phone based on Microsoft software late last year. The model, called the SPV, is manufactured by Taiwan's High Tech Computer. Early versions had software glitches that Microsoft said it had meanwhile patched up.

T-Mobile was supposed to be the second big catch for Microsoft.