Jajah app adds calling, texting to iPod touch

Internet phone company Jajah can turn the iPod touch into an iPhone.

The company, which competes with other providers of low-cost Internet calling applications, such as Skype, announced on Thursday a new application that will allow iPod touch 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 by 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.

Jajah plans to sell the application as a 'white label' service. This means that it will licence the application to wireless operators and non-wireless operators, enabling them to offer it under their own brand. It's unlikely that the service will be offered for free.

The application could be very useful for iPhone users too, especially those who want to make low-cost international calls from their iPhones. It's not clear yet whether Apple will allow the application on its App Store, since it essentially bypasses the carrier network. Skype, which also provides free and cheap Internet calling, is not available on the App Store. That said, iPhone users can access Skype functions and users through other applications, such as Fring and Truphone.