Abstract The contemporary information age is equipped with rich and affordable telecommunication services. In the future, people have even more flexibility when true wireless Internet and real-time multimedia are provided seamlessly over heterogeneous wireless networks. Optimally combining the capacity and services of the current and emerging networks requires a holistic view of mobility, resource and service management. This thesis contributes to the research and development of these hybrid systems with three main contributions. Firstly, a system architecture for vertical handoff in location-aware heterogeneous wireless networks is proposed. The proposed architecture enables the mobile node to prepare for approaching vertical handoffs and wake-up a hotspot interface. The needed communication procedures are discussed, and inter-related issues of mobility and geolocation information are considered in proportion to usability, advantages and limitations. Secondly, a framework for the analysis of vertical handoff algorithm sensitivity to various mobility parameters including velocity, handoff delay and dwell time is introduced. Handoff smoothing with a dwell-timer is analyzed as one potential scheme for optimizing vertical handoff locally. It is compared to a power based algorithm to find out its sensitivity to the changes in effective data rates, velocity of the terminal and the amount of handoff delay. The analysis focuses on the transition region, having case studies on both moving-in and moving-out scenarios. An optimal value for dwell-timer is found through simulations, showing a performance gain over power based algorithm as a function of mean throughput. The analysis is extended also to a multiple network scenario. Thirdly, experimental results on the behaviour of protocols used in wireless IP networks are presented. Prototype systems demonstrate results of using Mobile IP with a fuzzy logic algorithm for vertical handoff in a heterogeneous network environment and the role of IPv6 when using a voice application in a wireless LAN environment. Latest contributions include developing plug-and-play middleware functionalities for Symbian mobile devices, extending the use of the earlier results to state-of-the-art mobile devices.