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Om Malik points to a New York Times story, The Air Is Free, about the coming onslaught of WiFi handsets and how people can make calls piggy backing on open wireless connections.

The WiFi phones sound so cool, but many forget that what is cool, is not always that functional. The consumer experience on these devices remains horrible, and logging onto a WiFi network remains as much a mystery as the Chicago Cub’s decision to give a $136 million contract to Alfonso Soriono.

In some cases, the voice service is free. A Belkin phone that works with Skype (right) costs about $180. Calls to Skype users on computers are free, as are outgoing calls to domestic phone numbers (at least through the end of the year). Incoming calls from phones cost extra. Vonage charges $90 for a phone and $15 a month for 500 minutes of talk time.

David Isenberg says the new phones are Breaching the Cellcos’ Garden Wall:

I expect that Wi-Fi soon will be a popular requirement. I strongly suspect that mobile platforms with two radios, Wi-Fi and GSM, will host the really cool apps and outsell the others. If I were a cellco addicted to the vertical value chain, I’d be worried.

The $99 Linksys Dual-Mode Cordless Phone (CIT310) gives consumers the flexibility to make and take VoIP calls as well as place and receive phone calls using their traditional landline/PSTN connection. The Dual-Mode Cordless Phone for Yahoo! Messenger is immediately available through Amazon.com and will be available through other leading online retailers later this month.

T-Mobile rolled out its @Home service in Seattle last month, reports PhoneScoop. @Home is T-Mobile’s brand name for Universal Mobile Access (UMA) which allows a cell phone to make calls over a Wi-Fi hotspot in addition to the cellular network. It doesn’t use a landline — just T-Mobile’s cellular service and broadband.

Skype’s Internet calling service will soon be accessible at The Cloud’s Wi-Fi hot spots across Europe. Skype’s VoIP service has also been incorporated into cordless and WiFi phones made by Belkin, Netgear, SMC and others. But those phones still are pricey (in the $200-$300 range) without the practical convenience of a landline or cellular connection.

Holiday shoppers are expected to drive the number of smartphones sold this year to 81 million, reports USA Today. They’ll make up about 8% of the overall cellphone market, an increase from about 6% a year ago. Smartphone sales in the first half this year jumped 50% from 2005, researcher In-Stat says.

Infoworld tested the top Smartphones and the best WiFi Phones. Google says Cell Service Should be Free while Motorola says it’s all about ME.

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