If you have ever wanted an iPhone but you do not want to pay out for the monthly service plan then I may have the reach around that you need. A new application, called Truphone will let you turn your iPod Touch into a cell phone.
What's the catch. Well, as you may have imagined it cannot make the needed changes to your hardware to allow it to function as a standard phone. Your phone service will be VOIP based. This means that your catch is that you will only have phone service where you have internet. This may not make good sense for people who do not live in areas populated with a lot of free wifi.
The application is free and you can get it from the App Store through your iPod touch directly, or via your iTunes. It is also allows you to make free calls to other Truphone users. When you call in the US calls to other phones start at 6 cents and texting starts at .20 cents.
The service can also be installed on a current iPhone, on a Blackberry or a Nokia brand smart phone. Other models are under development.