REDMOND, WA — Music lovers frustrated by the lack of viable options to Apple’s iPod and iTunes Music Store may well have something to look forward to this coming holiday gift-giving season – and they’ll have Microsoft to thank for it.In true battle of the titans form, the internet is abuzz with speculation about the still unconfirmed rumor that the software monster everyone loves to hate plans to rock the handheld MP3 player world this winter and give Apple a real world run for its cyberbucks.

Supposedly scheduled for release in November, the possibly mythical Microsoft player is said to sport a larger video screen than that currently available on iPod, WiFi capability, and an Xbox Live-like social network some are saying will be deemed “Connected Entertainment.”

While all of this should be enough to make Apple — which presently occupies about 80-percent of the portable music player market – nervous, it’s nothing compared to speculations that owners of the potential Microsoft product will not only be able to download and share content directly via WiFi, but will also be able to download content they’ve already purchased at iTunes… and do it for free.

Given that iTunes has sold more than a billion tracks during its three years in business, that’s a lot of potential download time.

Microsoft has been negotiating with television and record companies to secure licenses to sell digital content, although there’s no knowing whether talks have been centered around the pre-existing MSN Music service or another, device specific, shop.

Microsoft has issues a two-sentence release on the matter, stating simply that “The stories you are seeing are based on speculation and rumors and, as such, we didn’t participate. We don’t have anything to announce at this time.”

The company has, however, announced that it and French Bouygues Telecom will collaborate to launch a new mobile music service next year in France, with Bouygues cellphones being specifically designed for the service.