Cingular to sell phone with Microsoft software

NEW YORK - Cingular Wireless, the No. 1 U.S. cellphone service provider, said on Wednesday it would begin selling a mobile phone running the latest Microsoft Corp. (MSFT.O: Quote, Profile, Research) software for mobile phones.
The Cingular-branded 2125 Smartphone, made by High Tech Computer Corp. (2498.TW: Quote, Profile, Research) will go on sale for $199 on Wednesday. Cingular, a venture of AT&T Inc (T.N: Quote, Profile, Research) and BellSouth Corp. (BLS.N: Quote, Profile, Research), is aiming the phone at both business and consumer customers, spokesman John Kampfe said.
It will be the U.S. first phone based on Microsoft Windows Mobile 5.0 software that has a typical cellphone dial pad instead of a tiny computer-style keyboard.
Palm Inc (PALM.O: Quote, Profile, Research) and UTStarcom Inc. (UTSI.O: Quote, Profile, Research) already sell phones in the United States using Windows Mobile 5.0 but these are aimed mostly at business customers and have small computer-like keyboards.
In the first half of the year Microsoft plans to provide a software upgrade that will let the phone automatically deliver e-mails from Microsoft's office e-mail system, potentially helping it compete better with Research In Motion