Here is a list of specs that industry insiders claim are true: The Zune phone will be a smartphone device and will have an interface similar to the music player.
The handset would work with Marketplace and will be able to sync with the Xbox 360. Video streaming from system to the phone via wireless Tipsters also claim that it won’t run on Windows Mobile platform and will be ready by the Holiday season. This one is a little hard to digest but hey stranger things have happened right?
Fact or fiction? Only time will tell but looks like the internet is abuzz with the fact that there is a Microsoft Zune Phone on the horizon, so be ready for the ultimate showdown between MS and Apple!
Information from source: http://www.mobilewhack.com/microsoft-zune-phone-coming/