China Telecom will reportedly cooperate with Microsoft's Windows Live Messenger to jointly develop new instant messaging software named eSurfing Live.

The new eSurfing Live will not only support voice calls and short message functions, but also can be integrated with China Telecom's other businesses, including My eHome and eSurfing Card. Users can login to the software with a 189 email box passcode.

In addition, the software is bound with the accounts of Windows Live Messenger, which allows users of eSurfing Live to communicate with their friends on MSN.

This new software is currently undergoing a beta test and neither company has given clear guidance on when it will be formally unveiled.