With rumors that the iPhone 3GS will be coming to T-Mobile in the U.S. and an end to the Apple-AT&T exclusivity arrangement, another way to get an “iPhone” on T-Mobile would be the Apple Peel 520. The device will work with an iPod Touch and bring mobile voice and SMS to the device, essentially turning the PMP into a phone. Go Solar USA has now announced that it will soon distribute the Peel 520 in the U.S. for around $60, though a release date and exact pricing is not available.

The Peel is essentially a case that integrates a battery–capable of up to 5 hours of talk time–and a SIM card to convert an iPod Touch into a smartphone. The Peel would provide an alternative to those who do not want to stick to the official iPhone carrier(s) in their countries, who do not want to sign a lengthy contract, or those who may not need a required iPhone data plan.

As the iPod Touch also runs the mobile iOS platform, the added capabilities will mean that users no longer will have to worry about securing an iPhone from AT&T and unlocking the device should an official T-Mobile offering not be made available. Also, if an official T-Mobile release doesn’t happen, this may be an easier way to get a calling solution with iOS than having to procure an AT&T unit as it seems that Apple is now only selling iPhones in the U.S. with an AT&T contract.

While users won’t need to deal with unlocking an AT&T iPhone to use on T-Mobile, iPod Touch and Peel as a T-Mobile smartphone would still require jailbreaking. Early reviews from overseas note that the Peel works, but voice call volume is fixed and SMS performance is not quite up to par.

(via: iPodNN)