The WiFi handset enables Vonage subscribers to make calls from any free WiFi hot spot, but it will not work within paid-only WiFi zones, such as Starbucks.

Vonage is pitching the F1000 at enterprises, which can set up a wireless LAN network on campus. Vonage executive VP of product development Louis Holder said companies could set up access WiFi points for about $100 each, which give about a 100-yard coverage.

For enterprise users, it would be like having a cell tower in your building – that’s how clear the call will be, Holder said.

It would enable employees to do away with their cell phones while at work, he said. They could be mobile throughout the office without burning cell phone minutes, he said.

After a $50 rebate, the F1000 costs $79.99. Vonage will charge $25 a month per user for unlimited calling to the US, Canada and Puerto Rico. Calls to the UK and most of western Europe, as well as Hong Kong, will cost about 4 cents a minute, Holder said.

The F1000 boasts all the typical features, including three-way calling, call waiting, caller ID, voicemail and call forwarding. It has up to five talking hours of battery life, with 50- to 100-hour standby.

Holmdel, New Jersey-based Vonage is also looking ahead to enabling its WiFi VoIP phone to accept paid WiFi services during the next few years, so users can roam more freely. Right now, we think most usage will be in the home or office environment, Holder said.

A handful of large US cities are getting free city-wide WiFi, he added, which means the F1000 can currently roam in certain locations.

He also said dual-mode WiFi-cellular VoIP handsets will likely become viable in the industry by 2007 and is something Vonage is looking at.