UPDATE 3-Microsoft unveils business phone initiative, sets partnerships.

(From CBS Marketwatch (Stories))

LOS ANGELES (MarketWatch) -- Microsoft Corp. on Monday announced plans to make a broad push into the business-telephone market, including desktop phones and videoconferencing devices designed by Microsoft and sold by partners, with some available as soon as June 2007.

The plan sets the stage for Microsoft to take on other giants, such as Cisco Systems Inc. , Avaya Inc. and Nortel Networks Inc. , in the industry march to replace traditional phone systems with more flexible and cheaper Internet technologies. See related Wall Street Journal story (subscription required).

Microsoft is looking for a boost in sales of its …