According to reports a few days ago, the PlayStation phone (or PSP phone, whatever floats your boat) was confirmed in a statement by SCE co-chief operating officer Jim Ryan speaking with The Economic Times of India.

Want to know what Sony has to say? Check the full article.

British Telecommunications (BT) and Sony Computer Entertainment Europe (SCEE) have signed a deal that will add new functions to the PSP, turning it into a phone of sorts.

The four-year contract includes the addition of "wireless broadband communications functions, including high quality handheld video calls, voice calls and messaging." Now, BT will offer the service first in the UK, though there's no word yet on how it'll actually work, but it's an intriguing development for the PlayStation Portable (PSP).

Said Steve Andrews, BT's chief of mobility and convergence,

The combination of SCEE and BT working together is a natural fit. Sony is a world-class company producing some of the world’s most innovative electronic devices and BT is at the forefront of communications with the 21CN global platform... With over 8 million PSPs shipped across Europe, we are very excited by the opportunity to give customers a whole new communications experience, connecting and seeing friends across the world through BT’s technology.

Will we be seeing a revolution of this sort in America and Japan? We certainly hope so.