Internet and software firm Microsoft is planning to purchase mobile music service provider Musiwave in a move that would see it competing with other mobile music services such as Apple's iPhone.According to TechTree.com, the deal would bring together Microsoft's Connected Entertainment technologies and services, such as MSN and Windows Mobile, with Musiwave's relationships with music labels, device makers and mobile operators.
Based in Paris, Musiwave provides 2.5 and 3G mobile music services, such as full-length and protected digital music downloads, real music ringtones, mobile video and digital music recognition.
Some of the world's biggest phone operators are among its customers, including Orange, O2, Vodafone and Virgin Mobile.
Microsoft, which would purchase Musiwave from Openwave, has signed an exclusivity agreement concerning its intention to buy the company, although financial details have not been disclosed, IDG News Service reports.
Commenting on the deal, Matt Rosoff, an analyst at Directions on Microsoft, stated: "They're probably looking at the success of the iPhone and are concerned that it could build into something. If [the iPhone] doesn't cut into Windows Mobile sales, it could stall growth."
Founded in 2000 by music and telecommunications experts, Musiwave was acquired in January last year by software innovation firm Openwave.
According to the company, its services, which are distributed throughout Europe, Asia and the Pacific Islands, "generate significant traffic growth and revenue for carriers".
