Sony has unveiled a wireless-enabled device that can send text messages and make free calls over the internet.

The new Mylo personal communicator, designed to operate on all 802.11b wireless networks, will cost $350 and be available in September at Sony's retail stores and online.

Mylo, which stands for "my life online," will compete with a range of hybrid communication devices, including phones with cellular and WiFi capabilities and a number of messaging and entertainment features.

The device features a 2.4in colour LCD (liquid crystal display) with a slide-out Qwerty keyboard for quick thumb typing. It comes with embedded with IM (instant-message) applications from several companies, including Google, Yahoo and Skype.

An internet browser is also embedded, with web mail services available through Google and Yahoo.

Also included is VoIP (voice over Internet Protocol) software from Skype.

Mylo is equipped with 1GB of flash memory.