Abstract: The present invention relates to a telephone apparatus comprising of a chip card receiver (28) for identification purpose, a display unit (30) and a circuitry to send and/or receive appropriate signals to a remote server wherein the said apparatus is only line powered; the said circuitry further comprises a CAS receiving means to acknowledge the phone is in offhook state and accordingly to mute the receiver, microphone and is able the keypad; a DTMF generator means to send appropriate DTMF signal to a remote server; a FSK signal receiving means and means to convert and display said signal on display unit (30); a chip card reader to receive an external chip card and sending the data within the said card to the said remote server; means to enable keypad and unmute receiver and microphone when there is balance in the user's account to allow the user to dial the intended number.