Digital Home Thoughts: Microsoft Axes Musiwave

"Nearly two years after spending $46m to acquire the Musiwave mobile tunes service, Microsoft has informed wireless carriers they can no longer use the service once their contracts expire, according to a source familiar with the matter. This source, who requested anonymity because he feared reprisals from his employer, says Microsoft notified operators by letter on Wednesday, September 9. The Paris-based Musiwave underpins the music, video, and ringtone services operated by wireless carriers across the globe, driving more than 50 million downloads a year for the likes of T-Mobile, Vodafone, and Orange. It serves carriers in the UK, Europe, Africa, New Zealand, and Australia - though not the US."

I guess I should not be surprised, but I didn't realize that Microsoft controlled a big chunk of the download service for the major carriers. Like the article suggests, I'm betting their rebranding the service and possibly linking it in with the Zune marketplace in some way, but it still appears that the carriers are going to be left out in the cold. Any ideas what is going on here?