Microsoft unveils new operating system for handhelds

Microsoft has unveiled a new operating system for handheld computers.

The company hope it will lay down the gauntlet to rivals by improving wireless networking and entertainment functions.

It includes a new version of Windows Media Player to improve audio and video playback and offers more options for connecting to other devices.

Executives demonstrated the Pocket PC 2002 at a trade event in San Diego.

"Pocket PC has set the standard for PDAs (personal digital assistants)," said Ben Waldman, vice president of Microsoft's Mobile Devices Division.

He added that its upgraded business and consumer applications would make devices running the software the most capable on the market.

The software supports Bluetooth - emerging technology that links devices wirelessly over short distances using radiowaves.

The firm is working closely with hardware partners to ensure the software is available by the beginning of next month.

Current partners include Casio, Hewlett Packard, Sagem, Mitsubishi and Toshiba.