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Cell Phone in Europe?

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I am planning an extensive trip back to Europe in Mid to Late September. I previously spent 4 months in Europe for school back in 2009 and purchased a basic global prepaid phone to use while there (which truly wasn't costly). This time i would like to try another method to hopefully save some money.

I am wondering if there are any smart phones (iphone, Galaxy, Droid) that would allow me to use a european sim card simply for basic phone purposes (call and text) but can use its full capabilities while in a wifi location???? Jailbreak? Unlocking? Basically I'm trying to avoid having to pay for a data plan for a phone, because i know it will be outrageous...

or

which may be impossible or illegal (or both) Is there a way to i guess trick my carrier into thinking that its local data, like with TOR browser how they can mask your location and server???
i currently am grandfathered in with Verizon Wireless for an Unlimited Data Plan (local data they tell me) which would be prefect because i could simply Skype around the world for pennies on the minute

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