Microsoft and French communications company SAGEM have developed a wireless Pocket PC with an integrated phone capable of high-speed Internet connectivity, the companies announced yesterday in Paris.

The SAGEM Pocket PC is based on Microsoft's Windows Powered Pocket PC platform. It has a built-in, dual-band GSM (Global System for Mobile Communications) phone, enabled with GPRS (General Packet Radio Service).

GPRS is a GSM bearer service using high-speed, packet-switched technology with data transmission speeds of up to 115K bps. Products should be available in the UK by the end of the year.

GPRS allows the user to surf any Web site, rather than ones optimised for wireless devices or those subscribing to a wireless service.

The SAGEM PDA will be priced around £500 without a subscription to an Internet service provider or a mobile telephone service provider, though pricing is likely to follow the mobile phone model where users pay for services rather than the hardware.