A few years ago, Bluetooth looked like being edged out by rival wireless standards, such as Wi-Fi or Ultra-Wideband (UWB), which promised higher speeds for file transfer and multimedia applications.

But the firms leading the Bluetooth SIG solved this by updating the standard with Bluetooth Enhanced Data Rate (EDR), and are now looking to add even higher speeds by making UWB an optional part of Bluetooth devices. At the same time, the specification is being extended to support new applications, such as watches that can display Caller ID information, and CSR hopes to integrate GPS with its Bluetooth chips, potentially making sat nav a standard feature on phones.

Bluetooth has already become a key feature of most phone handsets, and with new capabilities coming soon, it could soon become virtually indispensable.