Basically is there a mobile phone like an iphone, but doesnt use wireless broadband to connect to the internet?
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The short answer is Yes.
The problem is that most service providers seem to only sell those phones with a provision that you must buy internet service for the duration of the contract.
If you go here:
http://www.letstalk.com/cell-phones/shop.htm
and click the Advanced Filter button, there is a WiFi feature selection. Check this, and you can see the offerings with WiFi across service providers.