Smartphone Talks keep Verizon Busy

A day after reports of Apple’s (AAPL) potential deal with Verizon (VZ) on a new version of the iPhone, Microsoft (MSFT) was said to be eying the launch of a touch-screen multimedia cell phone on the carrier’s network by early 2010.

Citing people close to the matter, the Wall Street Journal reported on Tuesday that Microsoft's "Pink" project is aiming to produce a phone that would extend its Windows Mobile cell phone operating system in a bid to compete directly with the iPhone.

While Microsoft may involve a third party to manufacture the device like Google (GOOG) did with the Android platform, the Redmond, Washington-based tech giant is likely to play an integral role in its design and development.

The iPhone presently is available exclusively on AT&T’s (T) wireless network. However, in spite of not having the iPhone on its network, Verizon managed to beat AT&T in terms of net customer additions in the first quarter. The addition of a smartphone on its network may further help Verizon boost its future earnings. Shares of the company were up 47 cents to $31.01 at noon on the New York Stock Exchange.

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