The Truphone application allows users with a Wi-Fi connection to make and receive phone calls via voice over Internet Protocol or VoIP, with other iPod Touch owners, users of the Google Talk's messaging service, and customers of Truphone's Internet telephone service. The company said it expects to add the ability to handle landline calls.
The app creates a virtual keyboard on the second-generation iPod Touch to dial calls, and requires the addition of a headset and microphone.
However, Apple doesn't appear to be too threatened by Truphone; the application is available for free download at Apple's App Store.
While the app could work with any device with Wi-Fi access, the company said it has decided to focus on devices with connections to an application store.