The AP's Andrew Vanacore wrote a review of the iPod touch claiming that it's a great alternative to the iPhone.
I try to keep a stiff upper lip about not having an iPhone. Just couldn't afford it — not with the $75 a month or so AT&T charges for service on top of the $199 upfront cost for the device.
I could, however, afford the $229 iPod Touch — and got it as a gift, as it happened. It has most of the same goodies: a Web browser, e-mail, YouTube. And it stores way more music than the iPhone. (Ha!)
Vanacore notes that the iPod touch also can be used to make phone calls over Wi-Fi networks and that he used his to call China. He goes on to discuss VOIP applications Truphone and Fring, concluding that Truphone is his preference because it has better rates, noting that TruPhone charges you to make calls to landlines or regular cell phones, but generally at better rates than most wireless carriers. And it's upfront about what you pay.
Your balance — which you can add to with a credit card, either on the device or on your computer browser — pops up with the dial screen. Calls in the U.S. are all 5 cents per minute (2 cents if you sign up to pay a $4 monthly fee).
Skype announced a beta version of its Skype Lite VOIP software for Android, and for several mobile phones that support Java (i.e. LG, Motorola, Nokia, Samsung and Sony Ericsson) at CES in January. Still no word on if or when Skype will announce an iPhone app.