According to industry sources, Microsoft has almost completely stopped offering solutions featuring MSN Messenger to handset makers after telecom carriers complained about the function undermining their revenues generated from voice and data transmission services.

Microsoft was actively promoting the MSN Messenger function to handset makers, but telecom carriers did not want the service to be included in the handset. If the application was to be offered, the telecom service providers wanted it to be an additional feature that they could provide and collect revenues on.

So, Microsoft is now offering the MSN Messenger service through telecom carriers, the sources said, adding the market will not see any new handsets with built-in MSN solutions in the near future.

Motorola recently launched two handset models with MSN Messenger – the V3x and Ming. But Tom Hsiao, president of Motorola Electronics Taiwan said today because of contract terms with Microsoft, the two models will be the only Motorola handsets to have the functions.

Sources with handset makers indicated that high-end and mid-range handsets using the Windows Mobile platform will not be affected by the Microsoft strategy change because the segment is a niche market and telecom carriers do not feel threatened by it. It is Java-based handsets that will be affected, the sources added.