You can use your iPod Touch as a phone to make unlimited local and long distance calls. These calls are either free or very cheap to make this way. In order to set your iPod Touch up to use as a phone, you have to be able to connect to Wi-Fi or be around a Wi-Fi router. Then you need to make sure you have the right equipment and apps and then it is simple to make calls.
First, you need headphones that have a microphone speaker integrated into them for voice input. You can purchase these types of headphones just about anywhere such as Best Buy, Amazon or any store that sells gamer accessories or iPod Touch accessories. These types of headphones cost around $12.99 for Logitech speakers and go up in price depending on the brand and quality you want.
The next thing you need to be able to use your iPod Touch as a Phone is a softphone application or web based service that is specially made to allow you to make calls with your iPod Touch. Zoiper, which is available through iTunes is a highly rated free app for this. Others you can choose from, which are also available through iTunes are Truphone and Acrobits. Acrobits is $6.99 to download the app. Make sure and check how much calls cost per minute or if they are free so you are aware of how much you might have to pay for the minutes used.