Vonage and UTStarcom on Tuesday announced a cell phone-like device that will allow customers to use their Vonage accounts from anywhere there is a Wi-Fi connection.

Initially, the phone will only operate with public networks, meaning hotspots like those in Starbucks or some airports would not be compatible. However, Vonage said that it plans to resolve these issues as soon as possible.

The device will be compatible with Vonage's standard features such as three-way calling, call waiting, call forward, voicemail, and others. It will also include the capability to assign different ring tones to entries within the phone book, as well as vibrate and go silent.

For ease of use, the phone would allow the saving of Wi-Fi profiles to make the connection process faster. The battery offers up to five hours of talk time, and between 50-100 hours of standby time. Recharging of the phone would take about two to three hours, Vonage says.

"With the rapid increase of open access points around the world, this is a great opportunity for anyone who wants to take advantage of the affordability of VoIP service and also enjoy the convenience of mobility," Vonage product development executive vice president Louis Holder said in a statement.

Holder said that the offering was the first of its kind, and represented the "leading edge" in VoIP services.

With Wi-Fi becoming more ubiquitous, and places such as Philadelphia and San Francisco blanketing their cities with Wi-Fi coverage, devices like the Wi-Fi phone from Vonage could eventually replace cell phones in some metropolitan areas, possibly at a cheaper cost.

However, some companies are already working on combination Wi-Fi and cellular phones. Sprint Nextel in association with several cable companies plans to begin work on such a phone next year as part of a multi-year partnership.

UTStarcom emphasized the price point as a reason why they believe the phone would be successful. "Consumers with Wi-Fi access in their home can replace their traditional home phone with the F1000 and start reaping the benefits of wireless VoIP phone service right away," UTStarcom chief technology officer Bill Huang said.

The device is available from the Vonage Web site for $129.99 USD with a $50 instant rebate, bringing the price to $79.99 USD.