We gave up cell phones and this is exactly the solution we opted for. We got a Touch ($250) and a Skype number/subscription ($60) and saved over $1000 from our

We gave up cell phones and this is exactly the solution we opted for. We got a Touch ($250) and a Skype number/subscription ($60) and saved over $1000 from our cell contract. Two drawbacks: 1) Skype doesn't push calls through the other iPod apps so you have to have Skype loaded and the device unlocked to receive a call. In reality, you just make outbound calls. 2) If you have a need for a non-stop wireless signal (and we don't - not now), this won't work but....The Verizon Mifi ($60/month plus $100 upfront) gives you your own personal wireless connection through their 3G network. The bonus is you can connect up to five wireless devices at a time. The only real downside is a maximum of 5 Gb/month in bandwidth. True, that's an extra device to carry/charge, but the flexibility seems worth it to me if we ever to need constant connectivity. Basically, we get almost all of the iPhone's functionality for a lot less. Next year our total cost will be $60 (for the Skype services). I think this option can work for anyone who spends most of their time within range of a wireless network. In case our old car ever breaks down, we do have an emergency paygo cell. If we find we'll be out and about more often, we'll get the Verizon Mifi. What's interesting is Verizon actually pushed us down this path. We weren't getting decent coverage in our home (and no provider would in our town), so they offered us their Network Extender which routes cell calls through VoIP...for another $200. You read that right. They unload capacity from their towers and through the internet and still manage to charge $200.