Recognizing this, several of the world's top carriers have in the past two months started to embrace the speech recognition technology needed to offer advanced wireless voice services. AT&T took a $60 million minority stake in speech-enabled, wireless service upstart TellMe Networks Inc. early this month, followed by an unspecified minority stake in speech-recognition system vendor SpeechWorks International Inc. Rival Nuance Inc. signed software licensing agreements with British Telecom's Synchordia systems unit, Deustche Telekom, and NTT Software of Japan. MCI WorldCom confirmed it's also engaged in a technology trial with the speech-recognition systems vendor.

With all of the attention being paid to wireless applications, it's painfully clear that the infrastructure needs some drastic improvement. Wireless operators are scrambling to upgrade infrastructure by investing in better, faster wireless data networks. Recently, AT&T Wireless Services Group began testing advanced technology that eventually could boost data speeds on its wireless network to meet anticipated demand for wireless Web access.

The unit has created a testbed wireless data network that supports data speeds of roughly 100 Kbps using equipment from Mitsubishi, Motorola, and Nortel Networks. The network will be open to application software developers and AT&T technicians in Silicon Valley. Next year, AT&T Wireless Services plans to test higher-speed technology, called Enhanced Data for Global Evolution, which will support 384-Kbps wireless data speeds by 2002. Eventually, AT&T plans to support wireless data rates of 2 Mbps.

Verizon Wireless is following suit. The national wireless newcomer has signed a three-year deal, which could be worth up to $1 billion, with Lucent Technologies Inc. for wireless products. The plan is to upgrade Verizon's network to support peak data throughputs of more than 150 Kbps. Verizon wouldn't say when the project would be completed.

The extra bandwidth is desperately needed as wireless device sales soar and companies seek to send more content, such as high-quality MP3 audio and video, over today's tiny pipes. It also will help accommodate capacity-intensive users such as tech-savvy kids who plug their PlayStations and GameBoys into cell phones. Just wait until those wire-less phone bills start rolling in.

-With additional reporting by Jeff Sweat and Paul McDougall

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