Motorola plans to introduce a device that switches seamlessly between cellular networks and Wi-Fi networks whenever possible. This technique allows phone calls to be made for a small fraction of the calling cost of traditional calls, or even free.
Wi-Fi phones employ a technology known as Voice over Internet Protocol (VOIP), which translates conversations into packets of data that are sent over the Internet, instead of the conventional, circuit-switched phone system, for part of their journey.
The technology reduces the traditional notion of "long distance" — just as there's no extra charge to send e-mails around the world.
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