Sweden-based TerraNet has the technology to create a mobile phone network almost entirely out of handsets. The network "self organizes" as the handsets are turned on. Any node in the network can connect with any other node up to 7 hops away for voice or SMS.

To connect outside the peer-to-peer network, there must be some kind of base station, right? TerraNet has an answer to that: an access point. The access point is a PC with a TerraNet dongle on it and an Internet connection. Calls to the wider world are connected via free or low-cost VoIP-or to other nearby TerraNet clusters.

It's a neat idea, but I have to wonder. How are handoffs handled in this case? What impact does this have to the battery life of the handset? Inquiring minds want to know, but it looks like TerraNet's FAQ doesnt' say much in these areas.

Via BBC NEWS