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Cisco-owned Linksys, a VoIP equipment manufacturer has joined with Yahoo! to develop a new dual-mode cordless handheld device called Linksys Dual-Mode Cordless Phone for Yahoo! Messenger with Voice (CIT310).

Reviewing the latest model, Tom Keating writes that the CIT310 is somewhat similar to that of Linksys CIT200 Skype Phone. The handheld device provides the user low-cost PSTN Outbound calling using VoIP and Free voice calling to their Yahoo Messenger friends.

Yahoo’s Senior Director of Real Time Communications, Jeff Bonforte explains Yahoo! Messenger and Linksys are offering consumers the flexibility to make and receive free internet calls from the same phone they use for their home line.

The CIT300 also equips Yahoo! Local Search service to enable the users to find out local restaurants and business and quickly make a call with one touch.

The features of the CIT310 are color display cordless DECT handset, USB base station, Headset jack for connecting a headset, Multi-language support, Caller ID for both VoIP and PSTN calls, Weather search and Polyphonic ring tones, and Melodies.