Vonage V-Phone
The Vonage V-Phone can be considered one of the smallest phones in the world, it just depends on your definition of telephone. This kind of phone comes in a USB form and works via the internet (much like the popular Skype), the full V-Phone package contains pre-installed software and a microphone to be plugged on the side of the USB. This pre-installed software made by Vonage 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 - all this can be done/seen on the interface that will appear on the monitor after you plug it on the USB port
