My question is how you can produce a Web-service on android device &lifier host it around the mobile. Do not mis-understood it, I'd rather not access the already produced webservice used around the server, I wish to produce a webservice that returns json/xml &lifier host it on mobile. I am completely new to android development however i have programming experience.

Book this link: Peaceful Web Services Implementations in Mobile Products

It states its possible for java based mobile so It could be accomplished for android too.

Thanks.

There's one trouble with your setup and mobile products: mobile systems (wi-fi compatability and 3rd generation) mostly use NAT, which prevents inbound connections. This will make mobile products inaccessible from the web (inbound) when they can continue to initiate outgoing connections. Because of this mobile products mostly don't host servers.

You skill is make an Android service which pings a server ( an internet-server) every half an hour approximately simply send a little from client to server and back to determine the accessibility to request from another phone. By doing this you are able to upload media files to server and download these to your another device.