[uhhh.. sorry, I like samsung, but this doesn't seem smart. The Note II has the same specs but just 1.5" smaller. I can only see this do well at a price point of 199-250. But you can upgrade to the phone version Note II at that price and you get phone functionality included. I dunno, maybe I'm not seeing the market value but I guess there's a place for everything.]
Almost all samsung devices are also a phone, they have made it 7", 7.7", 10.1", all able to place phone call. So it is unlikely this 7" Note is not a phone as well. The only differences is, whether you want to buy seen making phone call with such a big device.