wifi to blow away telcos.

Nokia To Produce Wi-Fi Phone

February 26, 2006 11:59 p.m. EST


Denise Royal - All Headline News Staff Writer

London, England (AHN) - Nokia Corp. has unveiled a mobile phone that automatically switches between the Internet and standard cellular networks.


The technology, known as Voice over Internet Protocol, has become popular because of its low cost, but most users are tied to a single computer.


A consumer using one could begin a mobile call over a cell network, and then continue that call over a wireless network at his or her workplace, saving on cell phone minutes. Nokia says the technology can also provide reception in areas where cellular networks are weak. The phone is expected on the market this spring.


Nokia is the worldwide top mobile phone maker, but its sales lag in the US market. The handset market share leader in the US is Motorola, thanks mostly to the RAZR and their other clamshell handsets. Nokia was slow to embrace the clamshell form factor despite its huge popularity.

Also differentiating the US market from the rest of the world is the role of wireless carriers. To have a successful handset in the US a carrier distribution deal is necessary.