Going by a recent statement by analyst Katherine Egbert, of Jefferies & Company, software bigwig Microsoft is all set to release its Windows Mobile 7-based phone – probably the long-rumored “Pink” handset!

As per the information forwarded by Egbert to the clients, the Microsoft-branded handset will be a “Zune-like phone,” featuring a five-megapixel camera; supporting 720p HD video; and based on a music subscription model.

Noting that the phone is likely the result of an OEM partnership, Egbert added that the device would, in effect, be the “third screen” - together with Windows and Xbox - and the final constituent of the “3 screens and a cloud” strategy of Microsoft.

Egbert further revealed that the Microsoft phone will be released within the next two months - either at the Mobile World Congress in February or CTIA in March. However, there was no disclosure about the cost of the forthcoming Microsoft handset or the carriers that will offer it.

Meanwhile, with the rumors about Microsoft’s ‘Zune-like’ phone resurfacing, more so with the Windows mobile 7 on the horizon, a WMExperts’ report says that the handset will have two “flavors” of Windows Mobile 7 - a media version and a business version.

The report further added that HD media playback and capture, and apps for Xbox Live, Twitter, and Facebook will be among the key features of the media version of the Microsoft phone.