Can the iPhone be used without using as a phone?

I have heard of an iPhone application called iCall. A friend of mine uses it on his iPhone all the time. iCall allows you to make wi-fi phone calls on your iPhone.

I would love to own the iPhone, but I do not want to sign up for the AT&T (the US provider) phone service contract. Can this be done? I have a very low cost, long term cell phone contract already with another carrier.

Sure, the new iPod Touch has most of the iPhone benefits, but not all. Still it provides a viable option for me if I don’t want to use the iPhone as a phone, except if I use iCall.

So, iPhone or iPod Touch? or is than another option?

I thought that the only difference between touch and Iphone was the ability to make calls and 3g data. If it only places call under wi-fi, aren’t they pretty much the same at that point?

Maybe.
I removed the SIM card from my old (gen I) iPhone, and it worked just fine. However, there may be restrictions on installing Apps on an inactivated phone.
Also, the iPhone is really expensive if you get it without service - something to consider.

You can’t get a 3G without activating when you leave an Apple store, I believe.

You can get used ones, though.

I’d recommend getting an iTouch, and an earbud. Just use that for WiFi calling (I use Skype, 2.99 a month, or something ridiculously low like that.), although typically when I’m visiting family in BFE.

It does sound like you want an iPod Touch and then to get an app (possibly requiring jailbreaking or hacking the iPod Touch) that lets you make IP based phone calls over WiFi.

To me, the entire premise of the iPhone is that not only have cellphone service built in, it can do internet over AT&T’s wireless network for when you haven’t got a WiFi network around, which is most of the time for most folks.

If you never leave a college campus except to hit a Starbucks or Borders or Barnes and Noble with the free WiFi, then yeah, go for the iPod Touch.

There’s no Mic input on the iTouch, but you can get iTouch earphones with a Mic on them and use it that way through Skype, which I do all the time.

The iPod Touch was just a gateway drug for me. It wasn’t long before I got an iPhone. In my case, I was already an AT&T customer, so renewing my expired-for-years existing contract wasn’t a deal breaker, and my wife got a very nice, not too used iPod Touch out of the deal. The nice thing, though, is that 3G connection available anywhere, whereas WIFI isn’t as ubiquitous in SE Michigan or Mexico.

The thing is, unless you go to Belgium or another non-contract country (and pay US$1000 for being non-subsidized), you can’t get an iPhone without a contract.

In my case, I’m working outside of the USA, so I jailbroke my iPhone, and bought a local 3G broadband modem and plan. Yank out the SIM from the modem, install it in the phone, and I have exactly what you describe: a non-phone iPhone (except, again, I still have my USA contract). Oh, plus 'cos it’s broadband plan, they don’t get angry when I enable tethering and use the iPhone instead of the modem.