Launched in partnership with VoIP provider TelTel, the new phone lets users call other TelTel subscribers for free using a WiFi connection, and non-TelTel users for a fee. Calls made to and from the phone are made over the Public SIP Telephone Network, or PsipTN, telephony backbone.

The palm-sized phone comes loaded with a TelTel softphone, which includes the usual presence and buddy-list services. Speed dialing, redial, conference calling, call forwarding, caller ID and e-mail access are also standard features.

The phone will retail for $249 and is expected to be on retail shelves during the second quarter, said Fountain Valley, Californiabased D-Link.