Parrot has announced the Parrot DS3120, a home stereo that combines Parrot's wireless music and handsfree calling technology in one unit.

Its aim is to let consumers enjoy their music without being tethered to headphones, allowing them to listen to music, out loud anywhere, anytime.

The Parrot DS3120 allows users to play music from mobile phones, MP3 players, PCs and laptops wirelessly via Bluetooth - with a 10m range - or through a USB connection.

It also has an SD card slot, a line-in for an iPod and a built-in FM radio.

Once paired with a mobile phone, the unit also allows users to search through their contacts and channel voice calls through its 20W speakers.

The 1.8-inch colour TFT screen displays track and album details when playing music and phonebook information when making or taking a call.

When in music mode, the track details are grouped by source, artist, album and title. Users can select their source, see the track information and enjoy their music.

The Parrot DS3120 has its own battery power source when required, allowing for up to 10 hours playback, and weighs only 1.5kg, which means its portable too.

For voice calls, a microphone built-in to the unit picks up the user's voice from wherever they are in the room and claims to effectively cancels out all background noise.

Music is automatically muted with incoming calls, and with caller ID, any phonebook images stored on the user's mobile is displayed on the screen.

The Parrot DS3120 will be available worldwide in stores from October 2007 onwards for £119.99.