Turning an iPod Touch Into an iPhone
David Burnett recommends an eWeek article on the leading contenders to make an iPhone out of an iPod Touch. Of course your newly phone-capable iTouch needs no activation and no binding carrier contract, just Wi-Fi. One of the companies working in this space, JaJah, is bundling the software with back-end services such as billing, so that carriers — or anyone really — can offer free-calling iTouch phones.
If anyone has even the slightest bit of success with this kind of hacking, count on Apple's next firmware update "upgrading" the device. Then only wi-fi carriers or phone applications that they approve will work, and third parties that don't pay them for the privilege will be out in the cold again.
Matthew @ Bytemark Hosting