Making international long distance calls on your iPhone just got a whole lot cheaper, courtesy of those clever cats over at Truphone. Interestingly, while this new iPhone app does use minute-stealing to connect calls at a cheaper rate to overseas destinations, it apparently does NOT steal minutes using VoIP or 3G on the iPhone itself. Instead, calls are routed to a local phone number operated by Truphone first, and once inside Truphone’s network, are routed to the international destination using Voice over IP.

Truphone users will be prompted, at the time they dial an international number, whether or not they’d like to use Truphone to handle the call. Very clever.