I don't have an IPhone but I understand I can use an IPAD with Skype as a phone. I was thinking of using it while traveling. How does this work? Do I need a microphone and earphones? My cellphone is pay as you go so someone might call me on the cell while traveling and I could call them back on my IPAD for free?
You can use the iPad's built-in speaker and microphone. Skype-to-Skype call are free. You can call a phone for free if they also have Skype. You have to pay for call to a non-Skype number/people.
It works great. As said above you do need to pay to make Skype calls to other phones, but you can buy Skype number for $30 for the year which would give you a number and people could call you, then for $2.99 you can pay to make calls out to any phone number. Which is probably way cheaper than what you pay for your phone service. Just make sure you are on WiFi as I think the 3G will eat up your service if you have a 3G iPad. Good Luck.
You can also use the Line2 app by toktumi, which is what I do. For $10 a month, you get unlimited calling, unlimited SMS, and visual voicemail support. WAY cheaper than any regular phone plan.
Also, you can definitely use the iPad's built-in mic and speaker, but you can also buy an iPhone headset (basically the old white Apple ear buds that has a remote and mic on one side), and the quality is much better that way.
look into the app WHISTLE... its free anywhere in the U.S.... you get you own number, you can 3.5 cell phone earpiece for privacy, you have to put up with advertisements, no voice mail, wifi or 3G needed and Data usage is applied.