IP telecommunications company Jajah, has announced a new application that will be able to turn the iPod touch into a fully functioning mobile phone.

The new app will enable networks to launch the service under their own brand and provide customers with the ability to make phone calls and send messages to any phone in the world using their iPod.

To use the service, all users will need is Wi-Fi connection and a microphone headset, without the need of a SIM card or contract.

"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 of 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".

Jajah has said it expects the cost of phone calls with the app to be reduced by up to 98%, and in some cases even free. The application will apparently work with any Wi-Fi network across the world.

Last year Jajah announced that a VoIP app was on its way for the iPhone, yet despite an expected release date of summer 2008, there has still been nothing as yet. Here's hoping the iPod app doesn't see a similar fate.