The companies will also develop WLAN--or sometime called Wi-Fi--solutions for "hot spot" access with mobile 2G and 3G networks.

This is the latest effort to develop WLAN-based "hot spots" in the marketplace. Earlier this week, Intel Corp. announced plans to spend $150 million in developing this technology as well (see Oct. 21 story ).

Under the plan announced today, Ericsson, Agere and Promix will develop 802.11 solutions, based on open standards. The Wi-Fi solution will include 802.11b modules software and SIM technology provided by Agere, 802.11-compliant access-points technology for 2.4- and 5-GHz bands from Proxim, and IETF/3GPP-compliant authentication servers provided by Ericsson.

Ericsson will use Proxim's ORiNOCO AP-2000 dual-slot access point in its Mobile Operator Wireless LAN solutions for public hotspots. The solution will initially include Proxim's 802.11b radio, and in the future include 802.11a and future technologies such as 802.11g, said Jonathan Zakin, chairman and CEO of Proxim of Sunnyvale, Calif.

"The operators can offer customers attractive value added service packages, combining the different features of both WLAN and mobile technologies, also creating new revenue streams from locally adapted content," said Torbjrn Nilsson, Senior Vice President, Marketing & Strategic Business Development of Ericsson, based in Stockholm, in a statement.

"Together with Ericsson, we will clear the last hurdle to enabling widespread deployment of Wi-Fi networks in public spaces," said Ron Torten, vice president of the Networking and Entertainment Division for Allentown, Penn.-based Agree, in a statement.