Now playing: When Net calls met cellular

Internet telephony software specialist SIPquest said Monday it and wireless network equipment maker Nortel Networks are adding Internet-telephony capabilities to Research In Motion's BlackBerry, Sony Ericsson's P900 and other smart phones. The Net-phone user interface will come from Ottawa-based SIPquest, and Nortel's MCS 5200, which is network operator equipment for video conferencing, online collaboration and other advanced telephone services.

The pairing is further evidence of the collision course of cell phones and voice over Internet Protocol (VoIP), which is software that lets a broadband connection also act as a phone line. VoIP has already replaced about a million traditional wireline home phones, and is growing at a rate of about 7 million new home lines a year, according to some analysts. For cell phone operators, VoIP is a likely add-on to wireless broadband services, another avenue of attack the Bell operators stranglehold on the home phone market.

[douglaslau]

Cell Phone Operator

Cell phone operators look VoIP as a substitute of fix-line telephone only. Is there any idea how the cell phone operators to AVOID VoIP to be a substitute of cell phone? As Vonage is planning to offer WiFi-VoIP, it is just a matter of time for Vonage to carry net phone similar service for their users. I have read that net phone operators realise WiFi-GSM/CDMA not a threat but dual application is just method for transition period. The final destination may be the IP net phone to ride on low cost network infrastructure...