Reuters says that Microsoft and Motorola confirmed talks about development of a new Windows Mobile Smartphone to be launched by Orange.
A deal with Motorola, which recently unloaded its 19 percent stake in Symbian, a Microsoft competitor in mobile phone software, would represent a significant step for the world's largest software maker, which is trying to penetrate the market for mobile phone operating systems.
Orange, in a statement, said that it would strike "deals with Microsoft to develop new Windows Mobile-based Smartphones" as well as a cell phone for business customers featuring an operating system from Palm.
Orange said it was trying to offer its customers a choice of operating systems for its service.