Microsoft Corporation (NASDAQ:MSFT) and Telefonica S.A. (NYSE:TEF) (MCE:TEF) are teaming up to increase marketing efforts for Windows Phone. A statement posted on Telefonica’s website says the company will enhance its marketing efforts for Windows Phone in the U.K., Spain, Germany, Brazil, Chile and Mexico, initially for a year.

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The Collaboration Between Telefonica And Microsoft

The company said that its goal through the partnership is to “pave the way for a much more competitive market.” In other words, it seeks to take a chunk out of the iOS and Android duopoly which currently dominates the smartphone market. Telefonica S.A. (NYSE:TEF) (MCE:TEF) said that by promoting Microsoft Corporation (NASDAQ:MSFT)’s Windows Phone, it is benefiting customers by offering them yet another option in smartphones.

The company said it would also offer other Microsoft enterprise products, like Skydrive, Office 365 and SharePoint “in a mobile environment” as it tries to increase Windows Phone’s market share. Telefonica says it plans to not only promote Windows Phone, but also work with suppliers to ensure that high quality devices are available for its customers.

Microsoft’s Windows Phone Overtaking BlackBerry

Last month the latest statistics from the International Data Corporation indicated that Windows Phone has narrowly overtaken BlackBerry for third place in the smartphone race. However, while Microsoft Corporation (NASDAQ:MSFT)’s platform is making progress, it isn’t yet taking a sizeable chunk out of Android or iOS.

Also it’s worth noting that Telefonica S.A. (NYSE:TEF) (MCE:TEF) received a sizeable loan to help it give Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) a boost. So while this partnership is good for Microsoft, it also highlights Telefonica’s desire to really push competition within the smartphone industry.

The company said in its statement that it chose to work with Microsoft because of the company’s business culture and because that culture fits in well with Telefonica’s culture.

New Windows 8 Handsets

Today Microsoft Corporation (NASDAQ:MSFT) also unveiled two new Windows Phones on its blog. The HTC 8XT and the Samsung ATIV S Neo will arrive this summer on the Sprint network. Both will feature 8 megapixel cameras, seemingly leaving the Nokia Lumia line as top dog in the world of smartphone cameras.