The Vonage V-Phone is probably one of the smallest phones in the world; it just depends on your definition of telephone. It comes in a USB form and works via the internet and contains pre-installed software from Vonage that has the basic phone features like capable of making/receiving calls (duh), but it also has not-so-basic-stuff caller ID and call forwarding. One of the important details is that for one reason or another, while making use of the V-Phone you won’t be able to call the real 911 whenever you have an emergency, but the Vonage staff took care of that by including an emergency line of their own that will help you get what you need. This Vonage V-phone can also work as a portable storage device because of the 250MB of space included. The USB phone has its own Vonage number, which is a little odd, but presumably you can change it to your own. And at less than US$40, it’s not a bad way to start Vonaging now.
Via Vonage V-phone.