Mobile phone technology has been tested on Adelaide roads as a way to help motorists, cyclists and pedestrians avoid collisions.

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The alert system, developed by Cohda Wireless, Telstra and the South Australian Government, sends an audible warning by tapping in to the mobile phone network.

It is hoped the safety system will eventually be fitted in vehicles, used by cyclists by mounting their mobile on their handlebars, or by pedestrians hearing an alert from their phone.

Cohda chief executive Paul Gray said the technology had great potential to reduce road accidents, especially when so many people these days seemed to walk along while looking down at their mobiles.

"The technology we are developing is providing a warning for these distracted people," he said.

"With this [audible alert] system you have the car being informed and the pedestrian who is informed. Hopefully one of the two will take the right decision to prevent an accident.

"Giving vehicles 360-degree situational awareness and sharing real-time driving information is the only way we can create safer roads."

Alerts suited for driverless cars, Telstra says

Telstra chief technology officer Hakan Eriksson said the safety alert was another step toward dealing with the looming use of driverless cars on local roads.

Cyclists can mount their mobile phone on the handlebars while riding. ( ABC News: Ruby Jones )

"[It may be] connected to the brakes of the car, or you won't be able to open [the door] of a car if a cyclist is coming up from behind," he said.

While mobile phone use while cycling or walking might seem inadvisable, SA Transport Minister Stephen Mullighan did not expect the alerts to become distracting.

"A spoken alert, where someone doesn't need to be handling, looking at, or having the phone up to their ear, can be really effective," he said.

"With the driverless car industry expected to be worth $90 billion worldwide by 2030, it's vital that we encourage and support businesses locally to get involved."

There are hopes the technology will be in wider use within three to five years.