As WMC (world Mobile Congress) draws near, more and more rumors are point to the fact the might be a Zune phone in existence and Microsoft will be show casing it at the event
Spanish blog muycomputer
They claim that Microsoft will be unveiling the long-rumored Zune Phone at Mobile World Congress 2010. According to their inside source, the Zune Phone will be introduced by Microsoft with NVIDIA by its side and will even feature an NVIDIA Tegra processor, leading muycomputer to surmise that the handset will indeed be a Zune HD with phone and PDA functionality probably provided courtesy of Windows Mobile 7.