Nokia said Thursday that it had begun a two-month trial of UMA technology in the city of Oulu in west central Finland. The company has recruited 50 families who will test out the technology using the Nokia 6136, a Wi-Fi-equipped phone. The device is one of the first by the company to support UMA.

UMA, short for Unlicensed Mobile Access, allows the user to seamlessly hand off calls between Internet and GSM networks. When in range of a Wi-Fi or Bluetooth hotspot, calls would be placed over the Internet using VoIP. When the user moves out of range, the call hands off to the local GSM, GPRS or UMTS network.

"This pilot project is an important step forward in bringing functional UMA technology to the mass market," Nokia mobile phones research and development senior vice president Peter Ropke said. "Both operators and consumers will be able to garner the benefits of this new technology."

Supporters of the technology say it would decrease the cost for mobile phone operators to offer service in remote areas through Wi-Fi hotspots. Additionally, users would be able to place phone calls from home using their own wireless networks

In related news, Motorola has won a contract with TeliaSonera in Denmark to deploy its UMA solution for the operator's planned UMA service launch in the second half of 2006.

UMA provides cellular mobility as well as better, cheaper coverage inside the home using a Wi-Fi connection. In addition, users will have a seamless mobility using a single device, a single number, contacts book, voicemail and billing. The contract follows successful trials in 2005 and 2006 with TeliaSonera in Denmark.

Earthlink plans to start selling WiFi-only phones starting in the fourth quarter of this year. The phones will work over Earthlink’s WiFi networks, and will have a voice plan somewhere between $10 to $25. The company plans to sell with its MVNO Helio, estimated to launch in the beginning of 2007.

Sprint and cable operators are also interested in a dual mode phone that can switch from cellular outside to WiFi (and cable modems) inside the home. UMA, however, currently uses GSM cellular standards. Sprint is a CDMA company.

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