Linksys has launched a new phone that uses Yahoo Messenger software as a VoIP system. 

The Linksys CIT310 dual-mode cordless phone uses either a traditional land-line or Yahoo Messenger to place and receive calls via a USB base station that connects to a PC.

"The CIT310 is our first product to couple Yahoo Messenger with Voice and access to internet services like Yahoo Local Search," said Tarun Loomba, a senior director of product marketing at Linksys.

Yahoo Messenger for Voice lets users place calls between PCs and traditional phones.

While PC to PC calls are free, Yahoo charges for calls placed to traditional phone lines. Yahoo's fees are similar to those charged by VoIP providers such as Skype and Vonage.

In addition to the VoIP service, users will also be able to use Yahoo Local Search to look up numbers and receive weather reports through the handset. Users can access their Yahoo Messenger contact lists on the handset.

According to Linksys, the phone will allow the option of switching from the Yahoo service to a regular phone line by pushing a button on the handset.

The CIT310 is available on Amazon.com and is slated for availability from other online retailers later this month. Linksys has already introduced a similar phone that works with Skype.