iPhone now cheaper than an iPod Touch, with free calls too

I know, I know, you're either holding out for Apple's 3G iPhone or you never wanted an iPhone in the first place. Nothing's gonna tempt you to buy a E

I know, I know, you're either holding out for Apple's 3G iPhone or you never wanted an iPhone in the first place. Nothing's gonna tempt you to buy a EDGE-enabled iPhone, right?

Well, maybe things will change for you today. How about an iPhone that's cheaper than an iPod Touch, and makes free calls too?

Not only has the UK price of the 8GB iPhone been slashed by £100 , but free voice-over-IP calls have arrived on the iPhone courtesy of a new VoIP application from Fring.

You'll need a jailbroken iPhone to run Fring, although it's likely that an official app will be released when the iPhone v2.0 software is released in June.

Once installed, the free Fring application will enable you to make free  VoIP calls (or text chats) to other Fring users, plus contacts from Skype, Google Talk, MSN, ICQ and Twitter.

Then you can chat away to your heart's content in Wi-Fi hotspots without racking up massive phone bills.

Some might even take advantage of the pricecut to buy an 8GB iPhone for £169 , unlock it using ZiPhone, make calls in Wi-Fi hotpots and ditch the idea of signing up for a mobile contract at all. After all, it's cheaper than spending £199 on an iPod Touch.

Of course, I'd never condone such nefarious actions. I will, however, give Fring a try and let you know how well it works. Just in case you're tempted...

Apple iPhone price plummets

Read more iPhone rumours

Read our Apple iPhone review