Is the watadminsvc.exe process a virus, spyware or malware?

Process description:

Windows Activation Technologies Service

Author: Microsoft
Part of: Windows 7
The watadminsvc.exe process is installed with newer versions of the Microsoft Windows operating system and is responsible for ensuring that you are using a valid version of Microsoft Windows.

The 'Windows Activation Technologies Service' sends your product key to Microsoft where it is then checked. If the services determines that your key is invalid then Microsoft will activate a new process on your computer that displays a pop-up screen warning you that your installation of Windows is invalid.
4 visitors rated the threat level of this process as:


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Visitor comments
... rated this process as normal
look windows license = illegaal i think
... rated this process as safe
But how many times does it 'phone home?'
... did not rate the security threat of this process.
found "Windows Activation Technologies Service" in msconfig services tab (Windows7). Will unchecking this cause Windows to stop working? Does this 'phone home' every time I connect to the internet just to 'verify' that it's a 'valid' version of Windows? Can't find anything about it online, MS website just has pages-long PR about 'consumer protection' and links to their store to buy Windows.
... rated this process as unknown
if it is disabled in purpose
what will happen ?
... rated this process as unknown
Connects to XO Communications ISP that is not MS, never seen it before.
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