Line2 270x403 167x250 An iPhone App With Potential to Shake Up An Entire Industry.Those aren’t our words but the words of the NY Times to describe a new iPhone app called Line2, an app that can turn your iPhone into a better phone and an iTouch into an iPhone (where a Wi-FI signal is available).

Similarly to how one can use Skype to make VOIP calls, Line2 uses the same premise which can in turn allow you to save a lot of cash since AT&T’s 3G network is standard on the iPhone.

Similarly to Skype there is a monthly fee of 14.95 but when you’re saving a few times that worth of minutes it’s definitely worth it. If the savings are quite drastic, you may even consider downgrading to a cheaper plan. Line2 like many VOIP clients in the app store adds a second phone number to your iPhone and includes a built in contact list and an iPhone like UI that’s very friendly to use.

One issue that is present in both Line2 and Skype is the fact that in order to receive and place calls the app needs to be running on your iDevice (unless it’s jailbroken). If and when Apple ever releases the much needed multi tasking feature to the iPhone OS they could be potentially hurting their cell provider’s profit margins, but they would be doing the consumer a very big favor.

One Problem with Line2 and all VOIP calling clients is sadly AT&T’s network. VOIP calling over 3G is a fantastic option when there is a 3G signal available, but if not then you may be out of luck.

The app goes for .99 cents in the app store and service is free for 30 days, it will also be coming to Android in the future. Definitely a good buy if you’re in need of a second phone number or just want to save some cash which would otherwise go to AT&T.