Update: WinRumors is reporting from an unnamed source that Microsoft will detail this update in February at Mobile World Congress in Barcelona. More specifically, there will be two updates: one for copy/paste + CDMA in January and this bigger one sometime thereafter.

Another developer has come forward, this time saying that they expect a significant update to Windows Phone 7 in February. Previous conversations about this update, which is rumored to include copy and paste functionality in addition to CDMA support, had put the timeframe for release in January. Microsoft executives have for the most part stuck with the "early 2011" party line.

The developer also states that the update will also relax some of the restrictions that Microsoft has placed on developers including in-app downloads and local application deployment for corporations. One thing is certain; this update can’t come soon enough for many users. What’s on your wish list? Are you waiting on additional functionality before you make the jump to Windows Phone 7? Sound off in the comments!

Source: Business Insider, WinRumors