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Like all of the MSN Direct watches, the 2006 Abacus uses FM radio technology to communicate updates to the device.
ENGADGET: Switched On: The gist on your wrist
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The information, which can include traffic information, weather, stock quotes, news, sports and dozens of other snippets, would be transmitted to the watches not by any fancy third-generation wireless phone technology, nor via satellite, but rather by FM radio signals using a technology called DirectBand.
FORBES: Magazine Article
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We had heard this rumor on the internets a little while ago, and now it looks like Swatch is really going to come out with a SPOT watch (SPOT, of course, being Microsoft's Smart Personal Object Technology that uses FM radio signals to send data to watches, like news, stocks, instant messages, etc.).
ENGADGET: Swatch Paparazzi SPOT