Want the iPhone without the two-year baggage? Why not pick up an iPod Touch and install Jajah, an application that enables users to call using VOIP

In the same manner that Skype enables VOIP calling on the PC, JAJAH's new downloadable application provides the same service on the Apple iPod Touch, making it a fully functional mobile phone for consumers. The drawback is that users can't just call from anywhere--there must be a Wi-Fi connection for the application to work. The company also said that there is no need for a SIM card or contract to use the JAJAH application.

Although the iPod Touch client is available on the Apple App Store, the company also seeks to collaborate with carriers to launch the JAJAH plug-and-play IP platform under their own brand, enabling end-users the ability to make low-cost phone calls and send SMS text messages to any phone in the world. The JAJAH communications platform offers everything hopeful partners will need, including the actual application, and the entire suite of management services, from termination of the calls and quality control, right through to billing and processing payments in 200 countries around the world. Big name companies who currently use JAJAH include Intel, Yahoo, and Comcast.

"Millions of people around the world already have an iPod touch in their pocket. With JAJAH's solution, any company can turn their customers' iPod touch into a fully functioning mobile phone," said Trevor Healy, CEO, JAJAH. "The device is particularly popular amongst students, who live in a world where Wi-Fi access is always available and, like everyone, they are looking to save costs, so this is a perfect solution."

For iPod Touch consumers, calling costs will be up to 98 percent cheaper than existing rates on mobile networks, and in many cases could be free. According to the JAJAH website, calling from a mobile phone or landline costs 2.9 cents if calling within the United States. If calling to Iraq, the price jumps up dramatically, costing consumers 12.2 cents if calling from a U.S.-based landline to an Iraqi-based landline. Calling to a mobile phone in Japan will cost 17.6 cents if calling from a U.S.-based mobile device.

Is using the iPod Touch better than using the iPhone? Albeit there's still money to shell out, iPod users don't have the 2-year commitment ball-and-chain. "Offering a turnkey solution provides iPod touch users with added value," said Jon Arnold, principal analyst of J Arnold&Associates. "This is a prime example of how JAJAH's innovative platform helps carriers differentiate their services."

Given the economic downturn, cheaper is definitely better, but consumers who can track down other JAJAH users can call them for free. JAJAH also offers other ways to communicate, including a Google Gadget, a Firefox add-on, an OS X Dashboard Widget and more.