A new app from Skype allows to make and receive video calls for free from iPhone, iPad or from iPod touch over Wi-Fi and 3G networks. You can download it from app store . with this new application you can make: video calls to people on their computers as well as other iPhones (details below) free audio calls to anyone else on Skype great value calls to landlines and mobiles around the world The new app is compatible with the iPhone 4, iPhone 3GS, and iPod touch 4th generation with i0S 4.0 or above. You can also receive video calls on the iPod touch 3rd generation and iPad. Calls can be made between devices using the new Skype for iPhone app and desktops including Skype for Windows 4.2 and above, Skype for Mac 2.8 and above, Skype for Linux and the ASUS videophone. Source : The Big Blog