The software giant has announced that it will improve the music playing capabilities of its Windows Mobile operating system, as part of a strategy to boost sales of the product. Recent studies have shown that people are more and more interested in mobile phones that are able to play music.

"One thing that Apple has leveraged on is the music scenario, and I think that that is something the operators and ourselves are partnering on, just to make sure that consumers can use live music in the best way," said Andy Lees, senior VP of Microsoft's Mobile Business Communication.

Late last year Microsoft announced the acquisition of the French company Musiwave, a provider of mobile music entertainment services to operators and media companies.

Musiwave is responsible for a variety of products and services such as MODS (Music On Demand Service) a solution based upon Musiwave's Music Player, SDC’s Java DRM solution, and Coding Technology's AAC+ optimised audio codec. The service works on Symbian devices such as Siemens SX1, Nokia 3650, 3660, N-Gage and other Series 60 handsets.

With 1 billion music-capable mobile phones to be sold until 2010, the mobile music market is a potential gold mine for every company involved in the market. Every major carrier and mobile phone maker is involved in selling music or ringtones to its customers.

Already Microsoft mobile technology runs on a variety of mobile platforms, featured on more than 140 mobile phones made by 50 handset-makers, sold by more than 160 mobile operators around the world.

Some of the companies that have chosen Windows Mobile to run on some of their devices are Samsung Electronics, Motorola Inc., and High Tech Computer, better known as HTC.