Microsoft has not confirmed the rollout of Windows Phone 7.8, but rumors indicate that the update is just round the corner and will be available from the end of January.

Rumors are circling regarding the release of Windows Phone 7.8 for a while and now Windows Phone Colombia reports that the long-awaited Windows Phone 7.8 update will start rolling out on Jan. 31.

"As of January 31 and during the first quarter of 2013 some phones with Windows Phone 7.5 will be receiving 7.8 update" stated the Windows Phone Colombia's Facebook post (translated).

The rumor coincides with Australian carrier Telstra's handset update table that shows an update schedule for its Nokia Lumia 800 beginning Jan. 31.

Furthermore, UK carrier O2 tweeted "Hi there, the 7.8 Windows Phone update will be released by the end of January and will be available via Zune."

The Windows Phone 7.8 is expected to bridge the gap between Windows Phone 7.5 and Windows Phone 8. The key new feature in Windows Phone 7.8 is the updated Start screen, with support for three resizable tiles. In addition, the number of accent colors has been doubled to 20.

The update will allow the lock screen of a device to offer support for automatically using the Bing picture of the day as the background. The update will also enable lockscreen support for a PIN/password to aid better pocket- and child-lock screen security.

The idea of the update is to make Windows Phone 7.5 users feel that their handset is new and fresh. The update may also keep current Windows Phone users from switching to another mobile OS once their current contract expires.

Even though Microsoft has not officially confirmed the roll out of Windows Phone 7.8, all reports point towards a Jan. 31 release. We will have to wait and see if Windows Phone 7.8 makes its way to users soon by the end of January.