In May Microsoft launches its belated entry into the world of digital music sales in the US by teaming up with MTV to launch URGE - a service that integrates digital music sales directly into Windows Media Player 11. URGE partners Microsoft's technology with MTV's brand profile in the music industry in order to present a challenge to the dominance of iTunes in the digital music download market.

Now, according to industry sources, Microsoft is closing in on a partnership that will see the launch of a digital music download service in the UK - but with a difference. I have been informed that Microsoft is in final discussions not only with content providers such MTV but also with a number of major British telecommunications companies.  Whereas Microsoft's partnership with MTV is mainly designed to deliver brand and marketing value, a partnership with a telco could potentially secure the Microsoft a valuable additional channel of delivery.

A partnership with a telecommunications company could present a useful future opportunity for Microsoft, in the UK music downloads to mobile phones are becoming increasingly popular and companies such as Sony Ericsson have made convincing attempts to break into this market with hybrid phone/digital music players. 

When asked if they could confirm the rumors a Microsoft spokesperson gave the following statement:

"Microsoft's strategy has been, and always will be to innovate and invest in technologies, products, services and partnerships that enhance the digital lifestyle of all our customers around the world. Music is a big part of today's digital landscape, evidenced by the music experiences we currently create with our partners. While we continue to explore new ways to drive innovation and growth, there are no specific announcements to share at this time."

Hmmmm, I guess that's "no comment" then.