BenQ Mobile is launching the E72, a compact Windows Mobile 6 smart phone, available exclusively in the UK on BT Fusion, with the option to make cheaper calls over Wi-Fi.
The basic package costs Â£30 a month for 120 inclusive minutes and unlimited calls to UK landlines and mobiles.
The phone moves seamlessly between GSM and Wi-Fi networks, without any danger of a call being dropped.
The candybar handset features a 2-megapixel camera and Wi-Fi, and is just 13mm thick, so it is easy to carry around in a pocket.
Users can send instant messages to their contacts, whether they are on MSN, Yahoo, Google Talk, AOL or Jabber.