Japanese telecommunications company Nakayo is preparing an IP home phone [JP, PDF] that features an integrated 7-inch Android tablet. When receiving a call, users can pick up the handset to speak, push a button on the display (the tablet) to make a hands-free call or take the tablet out, walk around and speak into its mic.

The yet to be named phone system supports the Session Initiation Protocol (SIP) and Android 2.2.

Nakayo says the tablet can be used independently, as a web browsing device, and will be suitable for video calls. It will offer Wi-Fi IEEE802.11b/g, 800×480 resolution, a USB port, a 0.3MP CMOS camera, and a microSDHC slot (32GB max).

Mainly targeting businesses, Nakayo plans to offer the system in Japan from July this year. The company expects to sell some 30,000 units within 2 years (price TBD).