Nokia ( NOK) and Deutsche Telekom ( DT) rushed Monday to cash in on the so-called dual-mode telecom play in which users will readily switch between wired and wireless networks using one phone.

Deutsche Telekom said its T-One product, "combining the benefits of fixed line and mobile communications," is being tested on the Nokia N80 and Nokia E60 devices. Customers will be able to use the same data and voice services from home or on the go through a T-Com HotSpot.

AT&T ( T) talked up the wireless-wireline combination last week in unveiling its $67 billion deal for BellSouth ( BLS).

"The Internet and mobile communications are coming together faster than anyone expected. We're delighted to work with Germany's leading operator, the Deutsche Telekom Group, in the mobile and Internet space to offer new possibilities for people to communicate in a flexible way with the T-One solution," said Ilkka Raiskinen, senior vice president of Multimedia Experiences at Nokia.

"We are very pleased to be opening the door to the future of multimedia and broadband telecommunications by engaging in this pilot with Nokia," said Achim Berg, a member of the T-Com Board of Management, Marketing and Sales.