Skype’s official iOS client can now make video calls using an iPhone 3GS, iPhone 4, or fourth-generation iPod touch. People using any of these devices can share real-time video between themselves and people using Skype clients on Windows, Mac OS X, or Linux. If you are using an iPad or third-generation iPod touch you can receive video from the other clients, but since you don’t have a camera you won’t be able to send video.
The new client supports video over Wi-Fi and 3G connections and with an installed base of clients greater than those currently using FaceTime it may give FaceTime a run for its money.
Skype version 3.0 for iOS offers the following improvements:
[Via iTunes]