Microsoft could unveil an own-brand smartphone in a similar vein to Google’s Nexus One device at next month’s GSMA Mobile World Congress, according to media reports citing Jefferies & Company analyst Katherine Egbert. “Our recent industry checks indicate Microsoft will be debuting its own phone sometime in the next two months,” Egbert said, reports ars technica. Egbert added that the company is “partnering with a few OEM manufacturers” to create a Zune-like phone (based around its music-player software) which will have HD video capabilities, at least a 5 MP camera and will run Windows Mobile 7.

This is not the first time Microsoft has been linked to launch of its own-branded device. Last April the Wall Street Journal reported that the company was planning the launch of a ‘Pink’ smartphone with Verizon Wireless. However, Egbert’s comments contradict previous denials from Microsoft that it is willing to enter the hardware space. Earlier this month Microsoft’s president of its entertainment and devices division, Robbie Bach, took aim at Google for its move with the Nexus One, saying that handset vendors may fear the Internet giant will prioritise its own product over theirs and drop their support for Android as a result. What is certain is that Microsoft’s plans for Mobile World Congress are the subject of major speculation; yesterday Mobile Business Briefing reported that the company could announce two versions of the Windows Mobile 7 platform at the event; a business version and a media version.