speakerphone

[spee-ker-fohn]
noun
a telephone or telephone attachment equipped with both loudspeaker and microphone, thus permitting the instrument to be used without being held.

Origin:
1955–60, Americanism; (loud)speaker + (micro)phone or (tele)phone

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Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
speakerphone (ˈspiːkəˌfəʊn)
 
n
a telephone incorporating an external microphone and loudspeaker, allowing several people to participate in a call at the same time

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
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Example sentences
Record yourself speaking both directly into the phone and via the speakerphone.
The speakerphone and the vibrations are both weak, though.
The battery is good for three hours on speakerphone, and will stretch for a
  couple of days if you don't use the thing.
The generous keyboard makes for easy pecking, and the speakerphone
  automatically turns on when you open the brick for a call.
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