Verizon Wireless is reportedly working with software giant Microsoft Corp. to develop a new smart phone device that could rival the popular iPhone.

According to a report by the Wall Street Journal on Tuesday, Microsoft and
Verizon are in talks to develop a touch-screen mobile phone that would run on Window"s Mobile, Microsoft"s mobile device operating system that has seen its position come under attack from devices like the iPhone and BlackBerry, which use competing software platforms.