Yep, that's a touch-screen HAIER cell phone crammed into the PSP's UMD. The phone works, but this PSP mod loses the UMD drive. That's okay, we hear some people don't even use it. PSP Phone Mod [cngba via Just Another Mobile Blog via Gizmodo]
@LittleBigPlaneteer: Yeah, and not only, iso games runs better than UMD ones. With less loading times (a lot less)and even smoother if the game streams content from the memory\umd.
Oh and your battery last longer too (there's anything spinning inside your console if you use an iso)