Jajah adds calling and texting to iPod Touch

Internet phone company Jajah can turn the iPod touch into an iPhone. (Download from CNET Download.com.)

The company, which competes with other low-cost Internet calling applications such as Skype allows users to call and text messages using a voice over IP network instead of a carrier's cellular network. All that is needed to start making calls is the Jajah application, the latest version of the iPod touch, a microphone headset, and a Wi-Fi connection.

While the Jajah service can reduce calling costs up to 98 percent, the fact that it must be connected via a Wi-Fi network limits where it can be used. For this reason, it's unlikely that the Jajah-enabled iPod touch would really steal business away from the iPhone, which is a full-fledged mobile phone that operates over a traditional cellular network.