'Hands-Free' Players Await Demand Spurt

SAN FRANCISCO -- Forcing drivers to use hands-free devices for cell phones makes a lot of sense, but it also could make for great business.

As more states adopt the move to curb distracted driving by making use of hands-free communication devices mandatory, headset makers and Bluetooth chip suppliers expect to see a spike in demand.

Along with a host of smaller private companies, the move could mean a windfall for larger publicly listed players such as Plantronics(PLT Quote), which specializes in headsets, or Broadcom(BRCM Quote), which supplies Bluetooth chips.

For companies such as Sony Ericsson, a joint venture between Sony(SNE Quote) and LM Ericsson(ERIC Quote) and Motorola(MOT Quote), which makes both handsets and mobile phones, headsets are a small part of the overall business, but they also could see benefits from a spike in demand for these products.

Starting July 1, California will enforce a law that prohibits drivers from using cell phones in moving vehicles unless using a hands=free device.

Other states such as Hawaii, Iowa, North Carolina, North Dakota and Nebraska are debating similar legislation. Hands-free laws are also in effect in states such as Connecticut, New Jersey, New York, Washington and District of Columbia. With the exception of Washington, it's a primary offense in most states, which means that an officer can issue a ticket for a violation, even in the absence of any other traffic offense. (A complete list can be found here).

In all, about 20 states are estimated to have legislation in process that require some form of usage of hands free devices for the cell phone while driving.