Skype challenges FaceTime with video calls - over 3G

It was rumored that Skype would release an updated version of its iPhone app including video calling and 3G access. The update was rumored to come out at CES in Las Vegas next week but it looks like Christmas has come early for millions of iPhone users everywhere.

Skype today released version 3.0 of its iPhone app (free, App Store) ahead of CES...

With other Skype users you can:

• Make free Skype-to-Skype voice and video calls over 3G and WiFi.
• Share video calls on Skype with people on iPhone, PC or Mac.
• Talk face-to-face or show what you're seeing with front- and rear-facing cameras.

This, of course, means that you can now use Skype to make video calls with the iPhone 4's front-facing camera, previously the domain of Apple's FaceTime application.