Compaq has developed a prototype of a new palm-style device, nicknamed the Itsy, that can receive video images at 30 frames per second.

Unlike Compaq's current colour-screen palm-style offering, the Aero, the prototype does not use the WinCE operating system. Instead it uses a powerful Alpha processor and runs on the rival Linux operating sytem.

The Itsy is one of a range of Internet-connected handheld devices being developed by Compaq in its attempt to move away from the already-saturated desktop PC market.

Mr James Tempesta, Compaq vice-president and general manager, says Internet-connected handhelds will require much more processing power than today's devices.

"Down the road, people will not just want data. They will also want video and voice from handhelds. Clearly, as you get to video and a lot of colour depth, the processing power really goes up."