yes! it does! i meant VOIP... in other words no SKYPE or Vonage. so i ahve a friend who picked it up... says the sound quality is fantastic. he hasnt called me with it yet (butthole). he also says the video is great (was watching the last episode of Heroes), very very responsive, with our 8525 it takes forever for the buttons to respond. has a little delay i guess.
my husband works in smart phone development and he says its crappy. companies dont allow for reasonable development, lots of short cuts taken, redundant code... yep.... so hopefully a little Apple genius went into the iPhone. keep ya posted.