"We have decided not to introduce this phone,'' a T-Mobile representative said on the sidelines of a Deutsche Telekom news conference. "For the time being, we are not pursuing this project further.'' German-based T-Mobile is a subsidiary of Deutsche Telekom.
Industry sources said the phone from the world's largest software maker still had "fundamental problems" leading to high failure rates.
A Microsoft spokesman said Microsoft and T-Mobile remained "committed to launching a Microsoft Windows-powered smartphone," but added a launch date had yet to be confirmed.
