Microsoft is working on a counterpart to Apple's FaceTime. Someone has been digging around in the Windows Phone 7 registry keys and found mentions of "VoIP" and "SIP" which were hidden in the "ControlPanel" section.

Both entries were disabled obviously. Microsoft were asked why they would not use Skype to which they replied the FaceTime competitor will reach beyond the hand of Skype.

This news is sure to start some waves in the industry, Microsoft are really wanting (or is that needing?) a comeback in the mobile industry. FaceTime may be magical and revolutionary, but I don't know a single person who uses it...