The Internet device, called Kayak, will target emerging markets where 3G wireless networks are rapidly becoming more commonplace than traditional wireline networks.

Kayak is so far only an engineering plan to be made available to device makers, but it could eventually compete with web-capable cell phones and WiMAX, a wireless broadband service designed for Internet access.

Kayak is being positioned by San Diego-based Qualcomm as a less expensive alternative to desktop PCs. Kayak will feature cloud-based applications and a browser from Opera. The device will allow the attachment of  a standard keyboard, mouse, and monitor. It also could come equipped with a music player and gaming console capability.

The combination of mobile saturation and full-blown recession in developed markets is forcing mobile device makers to explore new opportunities in emerging markets.

Last week mobile phone maker Nokia announced six inexpensive handset models targeted at emerging economies. The Internet-capable phones will be priced between $32 and $117 and will include educational and agricultural apps.

Kayak is expected to retail for $399 before carrier subsidies are applied. Intel is currently marketing processors that could drive the price of low-end PCs to $250.

WiMax, a 3G broadband rival, is also targeting emerging markets. WiMax is specifically designed to connect PCs and other devices to the Internet.

According to the WiMax Forum, there are currently more than 407 WiMax network deployments in 133 countries. Most WiMax networks are being built in emerging economies.

Qualcomm, which develops CDMA, one of the leading cellular communications technologies, announced Taiwan-based Inventec as the manufacturer of the first device based on the Kayak design.

User trials are scheduled for Asia in the first quarter 2009.