Unveiled at the Mobile World Congress trade show in Barcelona, the Fonepad has a 7-inch IPS display and supports full 3G phone functionality.
Asus said that the Fonepad "is a tablet that retains the flexibility of a smartphone, but removes the need to carry two different devices".
The Full 3G telephone support means the Fonepad is always connected to the internet, but can also be used for voice calls via the built-in noise-cancelling dual-mic, or with a Bluetooth headset.
Asus feels that Fonepad customers will save money, as they won't need to own a smartphone and 3G tablet, both with separate mobile data plans.
Looks-wise, the device looks similar to the Nexus 7, the Google branded 7-inch tablet that is also made by Asus.
But it is fitted with the Intel Atom Z2420 processor CPU that clocks at 1.2Ghz, rather than the ARM's Cortex-A9 1.3GHz chip in the Nexus 7.
Other specs on Fonepad include 8/16GB of storage (expandable to 32GB via micro SD card), a 3-megapixel rear camera that can also record 720p video, and a 1.2MP front-facing snapper.
Running the Android 4.1 Jelly Bean operating system, the device weighs 340g and is 10.4mm thick, almost exactly the same as the Nexus 7.
Available in Titanium Gray or Champagne Gold colours, the Fonepad will go on sale from March 2013, with prices starting at €219 (£188) for the 8GB version.
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Watch a video below introducing the Fonepad: