The Chatter Telephone by Fisher Price is a classic toy. I had one as a child, and I was very excited when my Mother sent one for our little boy.
The toy is safe - plastic construction with smooth edges, short cord which doesn't present stragulation hazard, and no small dislodgable parts that might pose choking hazard.
This toy has been around for years. It makes cute little noises when dragged across the floor. It's eyes bob up and down as it rolls. The handset can be picked up and used for pretend play. It has the rotary dial (something most of our children have never seen on a phone nowadays) than jingles when turned.
Our son has really enjoyed this toy. He loves to pretend play and talk into the receiver as well as bring the receiver to us and involve others in the pretend play themes.
It's very affordable and safe toy! Every child should have one!