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I've been searching for an answer to the question if WiFi phones work in WiFi zones with NO service plan or maybe even no SIM card - basically, out of the box.
I'd been tempted to get an unlocked WiFi phone and use it for at least outgoing calls but I couldn't get past that question.
So I just went to a cell phone store (Rogers here, they work on the GSM network) and asked. The manager didn't know the answer so he just got a box of N95, opened it, and was able to connect to the Internet (they have a WiFi in the store).
Bingo!
Now I know that I can get an unlocked phone, download a piece of Skype software and start calling out - either from city hotspots, or from my home wireless internet! That means $3 a month for unlimited local and long-distance.
To get incoming calls, I can get a pre-paid SIM card. Or keep a conventional cell phone on a basic plan.
Great! We don't have a landline, and all our calls now will be $3 + maybe $20 for incoming calls.
Need to add that maybe for someone with low amount of talk time it wouldn't make a difference - we use about 600 min talking a month (running a business) so that will make a difference.