Microsoft's efforts to regain lost ground in the mobile phone business will see the company offering two different versions of its operating system next year.

The company will continue to broadly sell Windows Mobile 6.5 to a large variety of handset makers, while working more closely with several handset makers to sell phones built on a new version of Windows Mobile that has been several years in the making, according to a source familiar with the company's plans.

While Windows Mobile 6.5 is a fairly interim update to the mobile operating system that Microsoft has been selling, Microsoft has also been working on more radical efforts to overhaul the operating system. Both its plans for Windows Mobile 7 and its long-running "Pink" project aim to match the kinds of experiences seen on the iPhone and Android, using more advanced voice and touch interfaces and higher-end hardware.

Full story: c|net