Microsoft has unwrapped a low-cost GSM/GPRS mobile phone platform based on its Windows Mobile software.

The software giant said that 'Peabody', co-designed with Flextronics and showcased at the 3GSM World Congress in Cannes, is a low-cost design which can be brought to market quickly and at high volumes by original equipment manufacturers (OEMs).

Flextronics vice president Tom Deitrich said: "As mobile phones become increasingly customised consumer products, OEMs are under pressure to produce low-cost, feature-rich phones that address the demands of this growing market."

Microsoft said that, as a Windows Mobile-based device, Peabody offers OEMs access to more than 18,000 applications for business and consumers for product line customisation.

Flextronics said that it is also developing a family of devices based on next-generation Windows Mobile software for deployment on GSM/GPRS/Edge networks.

Microsoft also unveiled research which claimed that Microsoft Windows Mobile-based devices drive the highest uplift in average revenue per user by 37 per cent compared with some competitors.

The company claimed that, in addition to receiving email, users are more likely to access other data services, such as internet browsing, on Windows Mobile-based devices.