Internet kiosk developer, pieNETWORKS (ASX: PIE) has introduced a WiFi connected payphone offering VoIP calls at rates claimed to be lower than PSTN payphones.

The device also offers Internet access, acts as a public WiFi hotspot and acts as a sales point for downloadable products such as  ringtones, prepaid mobile phone credits and music,.

PieNETWORKS says it believes the device will "revitalise the use of payphones thanks to its combination of lower cost calls and other products." It suggests the device also has the potential to become a component of future mobile telephone networks as manufacturers enable their mobile phones to operate over WiFi hotspots and VoIP as an alternative to high cost cellular networks.

PieNETWORKs says it has already commenced discussions with interested parties in Australia and has received expressions of interest  from telecommunication companies overseas.