SEOUL, South Korea — South Korea-based LG-Nortel Co., Ltd. announced it will team with Microsoft Corp. to develop a business-enabled IP desktop phone built on Microsoft's newly-announced unified communications platform.

The IP desktop phones will work with Microsoft Office Communications Server 2007, have powerful IP call management features and enhanced instant messaging capabilities, LG-Nortel said.

The initial target market for the phone is small- to medium-sized companies and government departments in selective markets across North America, Europe and Asia, including South Korea, the company said.

Both Microsoft and LG-Nortel will market the IP desktop phone to Microsoft customers worldwide as well as through LG-Nortel's global distribution network of operators and channel partners.

LG-Nortel announced a strategic relationship with Microsoft in May 2006 when the two companies signed a memorandum of understanding for collaboration in VoIP, including the joint development and marketing of Windows CE-based IP terminals and the new Windows CE 6 videophone.