Microsoft and Palm battle again... in the cell phone arena. Bloomberg Boot Camp, a report on today's technology. The next generation of devices is arriving that combine the functions of PDAs and cell phones. And Palm and Microsoft are fighting again for dominance. At Palm, Palmsource CEO David Nagel says Samsung will ship the first phone that will use version 5 of the Palm operating system...

"And so it has much more computing power. It has multimedia capabilities. It has powerful security features built in which is really the first device to ship with OS 5.2 security features."

Nagel says that will allow secure connections to corporate networks for business users. The SGH i500 includes a built in digital camera and will run on GSM networks used by T-Mobile, AT&T and Cingular. Samsung is also making a new phone using Microsoft's PocketPC operating system. Microsoft lead product manager Ed Suwanjindar... the new device will operate CDMA networks, more popular in the U.S., initially with Sprint..

"We've been shipping on another standard, the GSM standard earlier last year. But the CDMA standard which Sprint and Verizon support has over a hundred million subscribers and growing here in the U.S."

Microsoft and Palm face competition from phone PDAs that use the Symbian operating system being used in devices from Nokia and Sony Ericsson. Bloomberg Boot Camp, I'm Fred Fishkin.