A cool prototype from NTT DoCoMo that translates between languages, on the fly. From Engadget:

Whereas Google Translate’s Conversation Mode was a turn-based affair when it was demoed back in January, requiring each party to pause awkwardly between exchanges, NTT DoCoMo’s approach seems a lot more natural. It isn’t based on new technology as such, but brings together a range of existing cloud-based services that recognize your words, translate them and then synthesize new speech in the other language — hopefully all before your cross-cultural buddy gets bored and hangs up.

Check out the YouTube video for a demonstration: