The man who invented the ubiquitous USB flash drive has
now come up with a concept that he says would “change the cellular
market”: A tiny cell phone that pops into interchangeable “jackets” so
that consumers can cheaply transform them into bigger, smarter phones
as a messaging device, a music player or a gaming device – or even into
other gadgets to connect them to the Internet.

Dav Moran,
founder of the Israeli company Modu, announced Thursday that it will
launch the phone, also called Modu, in October in three countries –
Italy, Russia and Israel.

“It’s not like the major companies
where everybody makes devices similar to the others,” said Moran,
referring to Modu. “We’re going to change the cellular market.”



    
        
            
        
        
            Modu
founder Dov Moran displays the Modu, a tiny cell phone that will retail
for around $280 (Rs 11,000 approx). The device can be popped into
interchangeable ‘jackets’ (right) to become a bigger smartphone or
gaming device, and even connected to other gadgets such as stereo
systems so as to give them Internet access
        
    


The Modu is slightly smaller than the current iPod Nano and weighs
42 gms. It has a small colour screen and a limited keypad, which allows
it to work as a rudimentary cell phone on its own.

The jackets
that will come with the Modu look like cell phones, with standard
numeric keypads and other features like cameras. But they lack the
antenna and chips that communicate with a wireless network.

This is where Modu comes in – it pops into a slot, turning the jacket into a 
fully functional phone.

Moran
said the Italian carrier is excited about the concept because it can
make cell phones more like fashion; tempting consumer to update their
looks every few months.

“This allows you to make a summer collection and a winter collection,” Moran 
said.

The
jacket is cheap to make, has almost no electronics, and doesn’t need to
be tested to see that it conforms to its network standards.

Moran
estimates that carriers will be able to sell a Modu and two jackets as
a bundle for about $280 (Rs 11,000 approx) – a price that they can then
subsidise down to free or almost free with a two-year contract.

The
jackets that will be available at launch in the other countries reflect
the differences between them. The Russian carrier wants an emphasis on
kids, who are the big growth market for cell phones there, so Modu is
making jackets with cartoon themes for them. The Israeli carrier, on
the other hand, wanted a cell phone for soldiers, so they will get a
rugged, green jacket with a built-in flashlight.

Other jackets could focus on music, coming with pre-loaded tunes, or have full 
keyboards for texting. 

Although
Modu supports only GPRS now, Moran said the company is working on
upgrading it to full 3G compatibility. And yes, he added that an
upgraded Modu would work with jackets and mates designed for the
first-generation unit.

Modu is also talking to consumer electronics companies such as German 
car-stereo maker Blaupunkt, and even GPS manufacturers.

The
idea is to have such companies build Modu slots into their devices to
give them network connectivity. That could allow a GPS device to
receive updates on traffic or map changes. A picture frame with a Modu
slot and loud speakers could act as a music-playing, picture-showing
charging station.

Other cell-phone makers like Sony Ericsson
have been sniffing at the modular concepts, but Modu appears to be
furthest along in its plan.

Eventually, Modu expects its jackets
to go on sale everywhere from bookstores to airport shops, where
travellers could pick up a jacket designed with in-built features such
as restaurant guides for their destinations.  
 
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