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Windows Phone 7 developers have long been clamouring for sockets support in Windows Phone 7, which will allow a much wider range of communication protocol support for their apps.
In this Channel 9 demo by the Windows Phone 7 team of Mango we see actual server-less device to device communication using UDP packets, which would suggest the holy grail of actual multi-player device to device gaming should be possible for developers (if of course you can find another Windows Phone 7 user).
Also of note is that Silverlight sockets on Windows Phone 7 is actually a superset of the desktop version, with much less limitations, which should let developers really stretch their wings.
More Mango goodness can be found on Jamie Rodriguezâ€™s blog here.