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Can wi-fi replace a modem?

I'm reading this compelling conversation since I'm strongly considering getting an E71 as my first new phone in three years. I'm also tempted by the Nokia 5800 XpressMusic though: on spec it's got a faster processor, twice the memory card capacity, better video, bigger screen and also an AV output with a standard 3.5mm connector. Unfortunately though it has no onboard modem, and I really need to use one. I'm wondering now if it's possible to use the wi-fi from a mobile to set up a personal hotspot and, instead of a modem, using that to connect my PC to the Net. Has anyone got any brainwaves?

Also does anyone know if the headphone jack on the E71 is a video out as well as audio? The spec on the nokia site http://www.nokia.co.uk/find-products/all-phones/nokia-e71/specifications says it has a '2.5 mm Nokia AV connector', but the manual mentions nothing about a TV out.

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