MANILA, Philippines?Dominant carrier Smart Communications Inc. has been named as Microsoft?s exclusive partner for the launch of the software giant?s line of Windows Phone 7 devices in the Philippines.

In a memorandum of understanding signed Thursday, the firms formalized their collaboration ?to bring new offerings that promise to transform the Filipinos? mobile lifestyle.?

?The Windows Phone 7 promises to fit the capabilities of the PC in a pocket device,? the two companies said in a statement.

Similar to its business model with personal computers, Microsoft does not manufacture hardware. Instead, it sells operating systems that are needed to run these devices, which, in this case, are mobile phones.

?In the past year, we have seen a rise in the use of data?something that we have eagerly anticipated for quite some time now. We saw the surge in the use of mobile Internet?for e-mail, browsing and social networking?plus a host of other data-related transactions using Smart mobile phones,? Smart president Napoleon Nazareno said.

Smart and other local telecommunications firms are banking on the growth of broadband Internet usage in the country to drive revenues going forward following the saturation of their traditional market for call and text services.

?These developments are clear opportunities for Smart services to grow and move forward, to help us succeed in bringing our customers closer to the future of telecommunications,? Nazareno said.

Since last year, Microsoft and Smart have worked closely to provide a special combination of service platforms and introduce Windows Phone 7 locally. Smart said it was bracing to make the devices and the service packages available to the local market this fourth quarter.

?We are very happy to join forces with Smart as we bring an enhanced digital experience to the Filipino public through Windows Phone 7,? Microsoft Philippines managing director John Bessey said.

?With this partnership, we hope to maximize the potential of the smartphone market and let the Filipinos take full advantage of the benefits of the mobile lifestyle,? he said.

The new phones are distinguished by a unique design and integrated experiences built from Microsoft?s innovations such as Microsoft Office Mobile, Windows Live and Bing.

Smart?s rival, Globe Telecom Inc., has a similar exclusive deal for the distribution of the iPhone in the country.