They had that in the early 2000s. Phones with phone to phone communication. The use cases for that is pretty limited so it never really caught on and stopped being included. It really only made sense during the small time period when people had phones but regularly were out of cell range (but still wanted to talk to people near by?)
The technology exists, and is built into some “adventure” phones such as the [Unihertz Atom XL](https://www.unihertz.com/products/atom-xl)
There have also been mesh network programs to connect directly to other phones and create a mesh network covering a region where each phone connects to any others around, but uptake was poor. An example of that software was “[serval rhizome](https://developer.servalproject.org/dokuwiki/doku.php?id=content:tech:rhizome)”
Phones relay conversations via cell towers. Walkie talkies send signals directly from device to device. Both technologies have benefits and draw backs. Phones need smaller radio since signal only needs to reach nearest cell tower. Walkie talkies are free, since you don’t have to pay for subscription.
Smartphones can do long-range communication using cellular networks or the internet, but walkie-talkies use radio frequencies for short-range communication without the need of a network. You can use a smartphone like a walkie-talkie with a special app, but it might have limitations like distance, security, and battery. Also, smartphones are not optimized for this specific purpose like walkie-talkies are.
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