For the sake of argument, we'll define a smartphone as a mobile device that includes next generation capabilities, like: java applications, color displays and polyphonic ringtones. Some include built-in cameras and multimedia messaging (MMS), or they have PDA operating systems like Palm and PocketPC. As you wade through the new handsets now available, you'll notice a few changes.

 

One of the first changes you'll see is a high resolution color display. Until recently, phones only had one choice of display. As Henry Ford said, you can have any color you want- as long as it's black. Times are changing. Almost every carrier is now offering phones with color screens, letting you download color graphics and photos. The quality of these color screens vary widely, so check out the options before buying one. If your phone has a color screen, you can customize your phone by downloading color screensavers.

 

This is pretty cool. Instead of having the same monophonic keypad tones on your phone, many new phones let you download polyphonic ringtones so you play actual music using MIDI files. Although it's limited to short music clips, this is still a fun way to personalize your phone. You can even assign specific ring tones and graphics to certain people in your address book. When your Aunt Melba calls, for example, you can have the phone display a picture of Darth Vader and play Def Leppard in the background. Well, you get the idea.

 

We're not talking Starbucks here. J2ME (Java for mobile devices) and BREW (a similar competing standard) let you download games and applications directly into your phone. By running the Java applet on your phone instead of over the air, it's faster and has better graphics. It's also a lot cheaper, since you don't need to send as much data over the network. With over 3 million Java Developers worldwide, there are a lot of people out there building applications, games and content that can work on mobile devices.

 

After years of hearing about it, phones are finally getting faster. Sprint Vision now offers a wireless connection that's three times as fast as a dial-up connection. AT&T Wireless, Verizon, T-Mobile and Cingular are also offering new higher speed access (watch for the upcoming article "How the Carriers Stack Up"). Although U.S. data speeds still aren't as fast as Europe and Asia, we're starting to catch up.

 

Another new twist on an old idea is combining PDAs and wireless phones. That's actually good news. After several less that stellar attempts over the last decade, the lastest handsets do a surprisingly good job of merging the two. There are three operating systems available for phones with built-in PDAs: Symbian, Palm OS and Microsoft's Smartphone. The Handspring TREO, T-Mobile Sidekick, and Audiovox PocketPC Phone Edition all do a good job of merging the best of both worlds. On the flip side, RIM's now offers it's popular Blackberry handheld with a phone built-in through T-Mobile and Nextel.

 

In Japan, J-Phone has 11 handsets available with built-in cameras, and over 8 million people are using its picture messaging service Sha-mail. Another 4 million are using rival Docomo's i-shot photo service. Nokia just launched its new 7650 Imaging Phone in Europe, letting you use the color display as a viewfinder, snap a picture, and save the photo in an album or send it to a friend. Sprint PCS, T-Mobile and AT&T's all offer optional plug in cameras that connect to your cell phone. Although it's standard fare in Japan, there are only a few phones with built-in cameras available in the U.S. That will change soon, though, as new models are rolled out.

 

Multimedia Messaging (MMS) is the latest innovation sweeping through Europe and Asia, and due in the U.S early next year. Instead of send a text SMS message, MMS allows you to include animations, photos and music in your messages. The big problem now is interoperability between carriers and the lack of compatible handsets. Although it will catch on slowly at first, MMS will be huge in the years ahead.

 

What this all means is that phones are getting smarter and faster. Color displays, polyphonic ring tones, and faster data rates will open the door to cool new services using your phone. In addition to adding custom ring tones and screensavers, playing games, and sending multimedia messages, your phone will be much more of an all in one communication device. Even if you don't need cutting edge services, a color display and polyphonic ring tones just make the phone nicer to use.

 

Many of these improvements will be incremental, and there's still a long way to go before Americans have video in phones like they do in Japan. Even so, the latest generation of phones is big step forward, and the best is yet to come.