Despite some setbacks, Microsoft hasn’t given up on bringing Web mashup-style development to the carrier market – it wants to try a bit of hand-holding to help break the ice.

Microsoft’s effort in this area, the Connected Services initiative, is getting a renewed push with a new program focused on helping service providers more rapidly build new services in partnership with third-party software vendors.

Launching today at the GSM Association Mobile Innovation Marketplace show in Atlanta, the new effort is dubbed the Connected Services Accelerator Program, which Microsoft describes as a series of programs to incubate and ultimately commercialize new telco services.

The first project for the program will focus on mobile services, with Microsoft working with service provider SingTel and third-party ISVs to develop new vertical industry mobile-oriented services.

Microsoft launched its Connected Services Sandbox project (centered around the networkmashups.com Web site) two years ago. Earlier this spring, it quietly revamped the effort – including re-launching the Web site and eliminating developer fees – after the project delivered just 162 registered mashups and only a handful of carrier sign-ups.

While sandbox-style development fueled by open APIs has driven much of the Web’s success, it is a departure from the strengths of both service providers – which tend to require more control over new service development – and Microsoft – which can credit a large part of its success to working extremely closely with and in support of third-party software developers.

The new accelerator program takes a more hands-on approach to new-service innovation while remaining consistent with the program’s Web/telco mashup roots.

“I wouldn't say [the initial Connected Services effort] didn't work; I'd say we didn't get the velocity and numbers of applications we were looking for out of the concept,” said Michael O’Hara, general manager of the Communications Sector at Microsoft. “We want to work on specific projects and take this thing deeper and focus on the commercialization of new services. The projects will all run with Microsoft working closely with developers, and they’ll all have an operator supporting and sponsoring the work and deeply involved in seeing [the services] do get commercialized.”

The initial Mobile Connected Services Accelerator program with SingTel will focus on the creation of vertical industry applications specifically targeting Windows Mobile- and Windows Vista-based devices. Microsoft said possible applications include collection of patient data in healthcare, telemetry and fleet-management solutions, real-time financial services, equipment and property management, and utilities management.

To qualify for the program, software developers must have annual revenues not exceeding $20 million or be privately held. Microsoft will work with these small vendors, and SingTel will offer up its infrastructure and resources for development and testing of the new applications.

The Mobile Connected Services Accelerator project will run from July 1 to Sept. 30. Applications created during the project will be entered into the GSMA’s Mobile Innovation Global Award Competition next fall, Microsoft said.

Beyond that, Microsoft’s O’Hara said to look for additional accelerator programs to be announced over the course of the year that cut across wired, wireline and converged network services and operators.