However, as others might be surprised, the iPod Touch does not possess a camera, 3G internet, GPS and compass. However don’t be ticked off too much. There have been recent innovations regarding on how to install 3G internet and possibly a GPS to your iPod Touch. Yes there are and these things are highly possible.

Turn the spotlight on to a device called the G-Fi. Now, what exactly is this? You may ask, what can this do to help your iPod Touch become connected? Here’s the catch: G-Fi can now add GPS to your iPod Touch, through its Wi-Fi capability. It can act like a MiFi because it can create a mobile WiFi hotspot. However, it does not have a MiFi’s ability to tube in the internet.

The G-fi can support up to 200 devices (beat that?). Any device which can enable Wi-Fi access can freely connect to the G-fi. It’s as easy as that! Believe it or not! A cost for the G-Fi is $100, with an additional charge of $30 for the connection. In order to pull up the application, you need to have the iPhone application Navmii.

Everyone loves the iPhone 3G and newer 3GS, but one of the cheif complaints  you hear from owners is the BIG (some say inflated) monthly bill from AT&T, not to mention the less then stellar 3G coverage from AT&T's already overworked and maxed out 3G network. People who want an iPhone have almost no alternative to going the "official" AT&T/Apple route.  As you know, the iPod touch is the little brother of the iPhone. It's 98% similar, with the obvious absense of a cell phone built in. The iPod touch can act pretty much the same as an iPhone when connected to a WiFi signal, but how can you make sure you ALWAYS have a WiFi signal? Keep a MiFi mobile hotspot within 30 feet of the iPod touch, that how. I have a feeling that AT&T does not want iPod touch owners to know about the MiFi mobile hotspot...

One very cool solution is this:

1) Couple the iPod Touch with an external microphone. The "stock" apple earbuds that come with the iPod have a tiny build-in Mic, which works perfect for the iPod Touch. 

2) Install the Skype app on your iPod touch. You can get a dedicated local area code phone number with unlimited calling for around $10 a month with Skype.

3) Buy a Sprint or Verizon MiFi 2200 Mobile Hotspot and subscribe to the data plan.

How does this work? Charge the MiFi and carry it in your pocket - it will be good for 4 hours, likely more than your iPod iteself. The iPod touch will communicate with the MiFi pocket router via its build it WiFi connection. The MiFi will relay your WiFi internet, voice, and SMS to your provicers 3G network. The Verizon MiFi data plan will allow you to make calls over Skype, for all practical purposes, having a true functional "cell phone". The best benefit comes to the cost savings: MiFi plans will cost around $75 per month ($60 monthly fee + about $15 in taxes and fees), while AT&T's average users  iPhone monthly bill is around $112 when taxes and extra fees are levied. The added "bonus" benefit is even cooler - up to four additional people around you within a 30 foot radius can connect to the web thru your MiFi (If you want them to of course!) and access the fast 3G Network over their own WiFi enabled mobile devices. It's a great choice for families - dad on his "MiFipod", and the kids connecting their PSP's and laptops to the web all though a single MiFi while on a long drive to Grandmas house.

The only real disadvantages are that voice calls have to be make thru an external microphone and that you will need to carry two devices. The MiFi itself is only 2 ounces and is about the size of 15 stacked credit cards - I would imagine that the prospects of saving up to 50% on the cost of you iPhone serivice plan AND getting better 3G service far outweights these issues.