The rumormill is abuzz with talk about the Zune Phone, aka Windows Phone 7, which many expect to be unveiled at the Mobile World Congress on Feb 15th.

Microsoft is expected to announce:

• Full Zune Integration
• The User Interface is based upon codename “METRO”, and will be similar to the Zune HD User Interface.
• Windows Mobile Device Center will no longer be used. Zune software to take over syncing via PC.
• Full support for social networking – unfortunately, no details on what this means.
• Windows Phone 7 will only support application installation through service based delivery. (i.e Marketplace). Application installation via storage card will not be possible.
• No Multi-Task support.
• No Flash support.
• Marketplace will now support “try before you buy” as well as an API
• No NETCF backwards compatibility. This means the original rumor of no backward compatibility for applications holds to be true. That being said, there are high hopes of porting the NetCF to the newer platform easily.
• Devices will be ready by September 2010
• OEM Interfaces will not be allowed to run on the device. Say goodbye to Sense UI / SPB Mobile Shell / Point UI / Infinity, etc.
• Full XBOX Gaming Integration (Gamer tag, achievements, friends, avatars, merchandising, etc)

If these rumors pan out, the Zune Phone will be Microsoft’s attempt to turn the iPhone into a commodity. It won’t matter who you get your Windows Phone 7 device from, it’s going to look sort of iPhone-like.