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Microsoft, Inc will team up with Toshiba, Victor, NTT DoCoMo, and five other companies in Japan to offer audio players and content that is compatible with the Windows Media Technology operating system, in order to compete against Apple Computer Inc's iPod, the Redmond, Washington-based company said.

Microsoft will develop the software while consumer electronics makers Toshiba and Victor, will make the portable device and Napster Japan, NTT Communications Corp and Aoyama Capital Co will provide content and other services.

NTT DoCoMo, Japan's largest mobile-phone operator, is also expected to come up with a mobile phone that can be used as a music and video player in the summer, it said, adding five other companies, including NTT Communications, will also be a part in the project.

Masao Nakamura, on Wednesday Said "Customers will be able to use (the improved service) by the end of this year."

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