TUAW reports that Sony has joined forces with the aptly named British telecommunications firm, British Telecom, to offer internet and communications features for the PSP. It reports:

“The new features include video and voice calls, though all the features depend on being connected to the internet in order to function.”

A BT press release further reports that they intend to:

“transform the PSP (PlayStation®Portable) gaming device by adding wireless broadband communications functions, including high quality handheld video calls, voice calls and messaging.”

Should Apple be worried? I suppose judgment should be reserved until the June release of the iPhone. But until then, there is speculation abound.

The iPod is an undeniable culturally iconic juggernaut that reigns supreme in the portable music player arena. That’s been established. But when it comes to their first forays into internet video downloads (Apple TV) and cellphones (iPhone), it’s beginning to look like they may have steeper hills to climb. Apple seems to be facing a rising tide of competition from the video game sector. First it was the Xbox 360’s video downloading capability, now comes news that Sony’s PSP will boast cellphone capability.

I’m not sure if “it’s on the street,” but in the words of the illustrious Glenn Frey, “the heat is on!”

Take a bigger bite of this apple… [link: British Telecom press release]

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