French mobile phone maker Sagem has launched a device that integrates high-speed wireless technology with Microsoft's Pocket PC platform.

The Sagem WA3050 combines data and voice capabilities in one device with support for GSM and GPRS (General Packet Radio Service) mobile networks. The device will be available in France this month, with Europe-wide availability during the first quarter of next year. It will cost around 1000 euros (£600).

Adam Anger, a business manager at Microsoft's mobile devices group, said: "This new device from Sagem offers all the capabilities of the Pocket PC platform plus the features of a high-end mobile phone in a single integrated product."

The smartphone will compete against Symbian-based devices such as Ericsson's R380, a keypad-based device released early this year.

The WA3050 has a high-resolution, greyscale touch screen interface and 16Mb of memory. It comes preloaded with the Pocket versions of Microsoft applications such as Word, Excel, Outlook and Internet Explorer. The device can also be used as a hands-free speakerphone.

Users can surf standard websites with Pocket Internet Explorer and obtain real-time access to email. Wap sites can also be viewed using the device, and audio files can be downloaded and listened to using Windows Media Player.

Microsoft said the device would not replace the need for separate handheld computers and mobile phones among most users, who only occasionally access information on the internet. The phone will therefore be marketed to mobile professionals and business customers, such as day traders, who are heavier internet users.

Henry Harrison, senior consultant at telecoms consultancy Schema, agreed that there would continue to be a demand for all manner of devices, as evidenced by Nokia's work on developing handsets that suited users' ergonomic preferences.

However, he warned that the Sagem device, and products like it, depend on the success of GPRS services, which are still mainly under trial. Unless GPRS uptake is high, smartphones will be regarded as "too clumsy for a lot of people", he said.

Although not available in the US, the device will go on display at next week's Comdex trade show in Las Vegas, alongside a number of products that bring wireless connectivity to the Pocket PC.