"Motorola will launch a mobile phone based on Microsoft software later this year, the first top five handset maker to do so," said a Reuters news service story last week. "Motorola told Reuters in February it would bring out a Microsoft phone, mainly in response to U.S. operators' requests, but then declined to give details or timing," the story added.

A story at The Register noted that the offering of a SmartPhone powered mobile handset by Motorola "would represent a major win for Redmond, which has failed to sign a Tier One handset vendor for its software platform despite lobbying hard for six years. And Motorola is a prize indeed: it's the world's second largest phone manufacturer."

"However," The Register added, "senior Motorola sources indicate that although the company has had a Microsoft phone project for some time, but no decision has been taken to bring the model to market . . ."