Toronto-based Telus Mobility is the second company to set up a virtual store in the 18+ virtual world/social networking site Second Life, in which 600,000 global users create virtual identities and conduct "second lives." Within one week of its late August opening, Telus had sold 100 virtual phones.

Right now, the phones are just able to help make avatars look important by enabling "busy" modes to let other players know when they're occupied in the real world. Users are also able to download ringtones. Telus has set up its own virtual saleswoman, Sparkle Dale, to sell phones and collect consumer feedback. Telus is currently trying to figure out how to facilitate a common user request: to somehow let virtual phone calls translate into real-world phone calls.

"Second Life was a great opportunity for Telus to tap into consumer-generated media," explains Devorah Lithwick, director of marketing communications. "We're interested in testing new unique opportunities...bloggers are already making note of it."

While Telus won't divulge how much this deal cost, it will say that the time investment was greater than the dollar amount. This initiative was done entirely in-house - from the idea to brokering the deal with Second Life.