The device had been expected to launch this summer. T-Mobile said in a statement that it remained committed to the launch of a Smartphone device, but added: The exact launch date for the Smartphone is still to be confirmed.

A spokesperson for Microsoft said: Both parties are still looking at the launch in the future, be it the summer or not, she said.

Microsoft hopes to use Smartphone to translate its hegemony over desktop operating systems to mobile devices and mobile phones, ensuring future growth through new markets.

T-Mobile, Europe’s second largest mobile phone operator, announced plans to introduce a phone running Microsoft’s operating system at the 3GSM World Congress in Cannes, France, in February.

Currently, Orange is the only European carrier shipping a Smartphone-based phone, the SPV. Vodafone Group Plc, Telefonica SA and TMN have all announced plans, with TMN planning a summer launch.

T-Mobile’s decision comes as Microsoft finds itself embroiled in a legal action with handset manufacturer Sendo Ltd. The manufacturer claimed Microsoft illegally passed on intellectual property it had developed around Smartphone 2002 and its hardware integration to a number of Asian OEMs.

In a counter action, Microsoft said Sendo failed to meet contractual obligations leading to the scrapping of the Windows Smartphone-powered Z100 project in November 2002.

Source: Computerwire