diff --git a/shell/shell.py b/shell/shell.py
index e4cc36a2..a86e6dc5 100755
--- a/shell/shell.py
+++ b/shell/shell.py
@@ -10,7 +10,8 @@ import gobject
 
 import sugar.util
 from sugar.chat.ChatWindow import ChatWindow
-from sugar.chat.GroupChat import GroupChat
+from sugar.chat.ActivityChat import ActivityChat
+from sugar.chat.MeshChat import MeshChat
 from sugar.LogWriter import LogWriter
 
 from Owner import ShellOwner
@@ -82,7 +83,7 @@ class ActivityHost(dbus.service.Object):
 		notebook.set_current_page(index)
 		
 	def _create_chat(self):
-		self._group_chat = GroupChat(self)
+		self._group_chat = ActivityChat(self)
 
 	def get_chat(self):
 		return self._group_chat
@@ -322,6 +323,8 @@ class ActivityContainer(dbus.service.Object):
 		self._chat_wm.set_height(0.5, WindowManager.SCREEN_RELATIVE)
 		self._chat_wm.set_position(WindowManager.TOP)
 		self._chat_wm.manage()
+		
+		self._mesh_chat = MeshChat()
 
 	def show(self):
 		self.window.show()
@@ -339,6 +342,8 @@ class ActivityContainer(dbus.service.Object):
 		if activity:
 			host_chat = activity.get_chat()
 			self._chat_window.set_chat(host_chat)
+		else:
+			self._chat_window.set_chat(self._mesh_chat)
 
 		# For some reason the substitution screw up window position
 		self._chat_wm.update()
diff --git a/sugar/chat/ActivityChat.py b/sugar/chat/ActivityChat.py
new file mode 100644
index 00000000..6e3c71c6
--- /dev/null
+++ b/sugar/chat/ActivityChat.py
@@ -0,0 +1,26 @@
+import logging
+
+from sugar.chat.GroupChat import GroupChat
+
+class ActivityChat(GroupChat):
+	SERVICE_TYPE = "_olpc_activity_chat._udp"
+	SERVICE_PORT = 6200
+
+	def __init__(self, activity):
+		GroupChat.__init__(self)
+		self._activity = activity
+		self._pservice.connect('service-appeared', self._service_appeared_cb)
+		self._pservice.track_service_type(ActivityChat.SERVICE_TYPE)
+		service = self._pservice.get_activity_service(activity, ActivityChat.SERVICE_TYPE)
+		if service is not None:
+			self._service_appeared_cb(self._pservice, None, service)
+
+	def _service_appeared_cb(self, pservice, buddy, service):
+		if service.get_activity_uid() == self._activity.get_id():
+			if service.get_type() == ActivityChat.SERVICE_TYPE:
+				logging.debug('Group chat service appeared, setup the stream.')
+				self._setup_stream(service)
+
+	def publish(self):
+		service = self._pservice.share_activity(self._activity,
+				stype = ActivityChat.SERVICE_TYPE, port = ActivityChat.SERVICE_PORT)
diff --git a/sugar/chat/GroupChat.py b/sugar/chat/GroupChat.py
index 8f32ace5..a269552b 100644
--- a/sugar/chat/GroupChat.py
+++ b/sugar/chat/GroupChat.py
@@ -2,34 +2,15 @@ import logging
 
 from sugar.chat.Chat import Chat
 from sugar.p2p.Stream import Stream
-from sugar.presence.PresenceService import PresenceService 
+from sugar.presence.PresenceService import PresenceService
+import sugar.env
 
 class GroupChat(Chat):
-	SERVICE_TYPE = "_olpc_group_chat._udp"
-	SERVICE_PORT = 6200
-
-	def __init__(self, activity):
+	def __init__(self):
 		Chat.__init__(self)
-		self._chats = {}
-		self._activity = activity
-
 		self._pservice = PresenceService.get_instance()
-		self._pservice.start()		
-		self._pservice.connect('service-appeared', self._service_appeared_cb)
-		self._pservice.track_service_type(GroupChat.SERVICE_TYPE)
-		service = self._pservice.get_activity_service(activity, GroupChat.SERVICE_TYPE)
-		if service is not None:
-			self._service_appeared_cb(self._pservice, None, service)
-
-	def _service_appeared_cb(self, pservice, buddy, service):
-		if service.get_activity_uid() == self._activity.get_id():
-			if service.get_type() == GroupChat.SERVICE_TYPE:
-				logging.debug('Group chat service appeared, setup the stream.')
-				self._setup_stream(service)
-
-	def publish(self):
-		service = self._pservice.share_activity(self._activity,
-				stype = GroupChat.SERVICE_TYPE, port = GroupChat.SERVICE_PORT)
+		self._pservice.start()
+		self._group_stream = None
 
 	def _setup_stream(self, service):
 		self._group_stream = Stream.new_from_service(service)
diff --git a/sugar/chat/MeshChat.py b/sugar/chat/MeshChat.py
new file mode 100644
index 00000000..0edc4c1a
--- /dev/null
+++ b/sugar/chat/MeshChat.py
@@ -0,0 +1,36 @@
+import logging
+import random
+
+from sugar.chat.GroupChat import GroupChat
+from sugar.presence.Service import Service
+import sugar.env
+
+class MeshChat(GroupChat):
+	SERVICE_TYPE = "_olpc_mesh_chat._udp"
+	SERVICE_PORT = 6301
+
+	def __init__(self):
+		GroupChat.__init__(self)
+
+		self._pservice.connect('service-appeared', self._service_appeared_cb)
+		self._pservice.track_service_type(MeshChat.SERVICE_TYPE)
+
+		self._publish()
+
+		service = self._pservice.get_service(MeshChat.SERVICE_TYPE)
+		if service is not None:
+			self._service_appeared_cb(self._pservice, None, service)
+
+	def _service_appeared_cb(self, pservice, buddy, service):
+		if self._group_stream == None:
+			if service.get_type() == MeshChat.SERVICE_TYPE:
+				logging.debug('Mesh chat service appeared, setup the stream.')
+				self._setup_stream(service)
+
+	def _publish(self):
+		# Use random currently unassigned multicast address
+		address = "232.%d.%d.%d" % (random.randint(0, 254), random.randint(1, 254),
+				  					random.randint(1, 254))
+		service = Service(sugar.env.get_nick_name(), MeshChat.SERVICE_TYPE,
+						  'local', address, MeshChat.SERVICE_PORT)
+		self._pservice.register_service(service)
diff --git a/sugar/presence/PresenceService.py b/sugar/presence/PresenceService.py
index c42e52e9..276bd69c 100644
--- a/sugar/presence/PresenceService.py
+++ b/sugar/presence/PresenceService.py
@@ -123,6 +123,14 @@ class PresenceService(gobject.GObject):
 		self._server = dbus.Interface(self._bus.get_object(avahi.DBUS_NAME,
 				avahi.DBUS_PATH_SERVER), avahi.DBUS_INTERFACE_SERVER)
 
+	def get_service(self, full_stype):
+		"""Find a particular service by full service type."""
+		services = self._find_service_adv(stype = full_stype)
+		if len(services) > 0:
+			return services[0]
+		else:
+			return None
+
 	def get_activity_service(self, activity, short_stype):
 		"""Find a particular service by activity and service type."""
 		# Decompose service type if we can