Microsoft’s yet-to-be-launched Windows Phone 7 device is expected to come with all the features of a modern smartphones, such as a touchscreen, a 5-megapixel or better camera, games, an application store and all that.

Earlier reports were emerging that the device would lack an important feature, called tethering. But, Microsoft turned down reports, confirming that its upcoming device would support tethering.

It may be noted here that tethering enables users to turn their smartphone into a modem mobile devices such as laptops.

Director of Windows Phone 7 at Microsoft, Brandon Watson, said that the imminent device would support tethering. However, he added that it would the decision to activate the service or not would be up to the service provider.

Microsoft has high hopes from the Windows Phone 7, and it wants to leave no stone unturned to garner support from service providers in a bid to make sure that its smartphone device becomes successful.

Currently, Google's Nexus One smartphone are able to tether their devices to their laptops for internet access, by paying a small fee to their service provider.

Windows Phone 7 device will be available through five major UK network providers, namely T-Mobile, O2, 3, Vodafone and Orange.