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T-Mobile And Apple Prepare For Wi-Fi Cell Phone Battle: Page 2 of 2

While the two GSM-based firms -- AT&T and T-Mobile -- will compete at least partially over Wi-Fi, Verizon and Sprint have gone off in different directions. Verizon is centering its data future on EV-DO, the 3G infrastructure developed by Qualcomm. Sprint, which is in the process of deploying EV-DO, also is rolling out Wi-Fi and its more advanced wireless solution WiMax. Sprint also offers a handset -- Audiovox ppc6700 -- that has Wi-Fi capability.

The key will be pricing, as mobile phone providers slug it out over data services, Nordgaard said. So far, T-Mobile's $20-a-month fee for users in its Seattle trial -- similar to the charge for its Starbucks service -- is the only public pricing available to date. The Sprint Wi-Fi feature is free and pricing for the iPhone isn't yet available.

Other mobile phone providers have been inching into the Wi-Fi and VoIP market. Mobile VoIP provider WiFiMobile announced Thursday that its Version 751 software for making VoIP calls over Wi-Fi is available for Nokia N95 handsets. The software, WiFiMobile said, also operates over 3G networks.