The PSP is set to become a phone, Internet browser and video conferencing tool thanks a new deal between Sony and BT.

BT and Sony Computer Entertainment Europe (SCEE) have signed a four year deal to help transform the PSP by adding wireless broadband functionality including high quality handheld video calls, voice calls and messaging. The announcement confirms rumours that Sony was planning to expand the PSP beyond its gaming and entertainment roots.

There are 24 million PSPs around the world, 8 million of them in EMEA. A deal like this is certainly going to give some Apple honchos something to think about, just a month before the official US launch of the iPhone.

BT will be Sony's lead wireless communications partner across 102 SCEE territories but the UK – for a change – will be the first the to get the new PSP extras. Whenever it arrives, that is, since no date has been set. The technology used will based on BT’s IP-network, 21CN, and will add BT Broadband and other ’softphone’ products to the PSP.

Sony recently launched its clip-on Web-cam, the Go-cam [pictured] and it’s now good to know that the PSP with added wireless broadband features, will be able to do more than just capture that video.

Steve Andrews, BT chief, mobility and convergence, commented: “The PSP is an excellent device for both gaming and communications, because of its high quality screen and audio capabilities. With over 8 million PSPs shipped across Europe, we are very excited by the opportunity to give customers a whole new communications experience, connecting and seeing friends across the world through BT’s technology.”

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