"[Modu] is a tiny modular phone that can be slipped into different device 'jackets' -- like an MP3 player, a GPS device, a bigger cell phone, car stereo, or a digital camera. It will launch on October 1 with mobile carriers in Russia, Italy, and Israel. There are no plans for a U.S. launch at this point.
You can think of Modu as an expanded SIM card. It can make a call, send text messages, and hold a contact list -- the bare minimum required to be a mobile phone. That is why it is so small -- about the size of an iPod Nano. Consumers will be able to carry it around and stick it into different device jackets, depending on the functionality they want. In a camera, for instance, Modu can be used to send pictures over the wireless network."