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By Ben Charny, 6 January 2003 10:40

NEWS Microsoft will step up its fight with Nokia today with plans to unveil software that powers mobile phones based on Code Division Multiple Access (CDMA) technology. The software giant has been competing in the cell phone operating system market with what amounts to one hand tied behind its back. The company's mobile operating system worked with only one major standard, GSM (Global System for Mobile Communications), which is dominant in Europe. Nokia, on the other hand, is a backer of Symbian, an operating system that sits on phones that use both major standards, GSM and CDMA. Hitachi's Multimedia Communicator and Samsung's i700, to be announced today, are among the first phones to use a version of Microsoft's phone software for CDMA networks. They will both be demonstrated on Wednesday at the 2003 Consumer Electronics Show in Las Vegas. The phones are meant for the North American market, the world's largest concentration of CDMA phone users, said Ed Suwanjindar, a Microsoft spokesman. There are about 100 million CDMA phone users in the US, compared with 17 million GSM subscribers. GSM use is much more prevalent in Europe, where nearly every phone is a GSM phone. "The CDMA market is one that's been underserved by our competitors like Nokia" because of the Finnish phone maker's focus on making primarily GSM phones, Suwanjindar said. "We can understand that. There are 750 million GSM subscribers worldwide. But we see an opportunity to address a key market." A Nokia representative declined to comment, citing a policy of not discussing a competitor's product. The operating systems from Nokia and Microsoft power smart phones, devices that cost between $300 and $500 and combine the functions of a mobile phone and a PDA (personal digital assistant). Smart phones will make up about a third of the 700 million phones being sold every year beginning in 2007, Suwanjindar said. Verizon Wireless is a likely candidate to sell the Samsung and Hitachi devices because it's a CDMA carrier and has a service that features easier wireless access to Microsoft content such as Hotmail and Outlook calendar functions. Sprint PCS is the only other major CDMA carrier in the US. Representatives from both wireless carriers could not be reached for comment late on Friday. Additional information about the Hitachi and Samsung devices, including price and availability, was not available. Ben Charny writes for CNET News.com.