Dubbed ‘Wireless Rebidding,’ the service uses InPhonic’s two-way SMS technology to allow real-time bidding from any SMS-enabled mobile phone or wireless device as well as any WAP-enabled phone. InPhonic said that it has a patent pending on two-way SMS bidding technology that will extend to all wireless devices.

For a monthly fee of $2.99, eBay members can have unlimited wireless alerts and rebidding on eBay listings, and for a premium price, they can also access wireless broadcasts of news, weather, sports and other information.

Previously, the auction Website offered customers its ‘eBay Anywhere,’ a free service that sends alerts to wireless devices when an auction is about to close or when someone has been outbid. But customers could not respond to the message and submit a new bid.

Brian Cowley, vice president and general manager of sponsorship and services for eBay, admitted that the company’s previous wireless service hadn’t been successful. "The difference with this [new] service is it’s two-way and it’s simpler," he said.

The service is compatible with the six leading American carriers, but to date only Nextel Communications has agreed to provide billing for the service. Similar deals, however, are being negotiated with others carriers and will be announced shortly, according to InPhonic’s CEO David Steinberg.