Telia claims to be the first telecommunications vendor to bring Internet protocol (IP) -based GSM technology to market.

While GSM (PCS) cellular technology is a digital-based wireless system, the data streaming to and from the mobile uses a different format than IP. This makes interfacing a GSM network with other IP-based networks something of technical problem. By developing IP-based GSM, Telia says that it solves this issue, and effectively brings together data, Internet, mobile and IP telephony under the same network umbrella.

While this doesn't affect consumer users of a GSM network, it makes life a lot easier for companies, since they support almost all of their telecommunications needs using a single network standard, TCP/IP.

Previously companies needed to build up different networks for telephony and data.

Telia Bright, the Telia division handling the new technology, is now working with ABB in Vasteras, Sweden, to pilot test the new IP-based GSM technology this coming summer. If everything goes to plan, the technology will be available commercially by the end of the year.

One of the most interesting aspects of IP-based GSM is that GSM base stations can be hooked straight into a company's local area network (LAN), allowing GSM coverage for local traffic. By using this approach, fixed telephony traffic is transferred from the company switch to the data network and external communication goes via the Internet. The bottom line for company users is that they will have just one phone number, which works on their deskphone in the office, using the GSM mobile and almost any other device hooked into the company network using IP standards. In addition, when using the GSM phone within range of the office's private GSM base station, calls are routed via the company switch, saving on public wireless call charges.