Internet phone company Jajah is announcing today the availability of a new application which it claims can turn an iPod touch into a "fully functioning mobile phone" of sorts. Specifically, the recently unveiled application would allow touch owners to call and text using a voice over IP network instead of a carrier's cellular network.

Of course, the fact that users would need to stay connected in a Wi-Fi zone at all times to make calls or send messages really limits where it can be used. On the other hand, this could be very useful for iPhone users looking to save money on international calls when a wireless hotspot is available - ala Fring or Truphone.

The company says it is considering a release on the iPhone App store, but initially their plan is to sell this as an iPod touch white-label application for wireless carriers to provide the service under their own brand with a monthly subscription fee attached.