Cell phone makers plan to release so-called Wi-Fi phones ahead of schedule

Cell phone makers plan to release so-called Wi-Fi phones ahead of schedule, bringing new threats and opportunities to wireless carriers and traditional phone service providers. The highly anticipated hybrid phones let people make connections using a local wireless Internet access point and seamlessly switch over to a cell phone network whenever necessary. The net result is greater flexibility in mobile communications as well as potential cost savings gained by shifting call minutes that would otherwise count against a cell phone plan onto the Internet. New phones and handsets that promise to accomplish this feat are due later this year from Motorola, Hewlett-Packard and NEC. Each is different, but all combine into a single device three hot technologies that are transforming the telecommunications industry: high-speed Wi-Fi wireless networks, voice over Internet Protocol (VoIP) and wireless broadband. "If you go into any major carrier in North America or Europe today, they are at the very least in the strategic planning phases of integrating Wi-Fi and cellular into a package," said Novatel Wireless Vice President Brad Weinert. "What's holding them back is the infrastructure to manage this on a large scale. But the operators are certainly driving in this direction quickly."