The latest version of Skype now allows video calls on the iPhone, iPod Touch and iPad. The biggest new feature in the latest version of Skype is the ability to make two-way video calls. However, this is only possible on on the iPhone 4, since it’s the only unit that has a camera on the front. The other units can only receive video calls.

Unlike Apple’s FaceTime, Skype 3.0 adds support for video calls over 3G. FaceTime only works on wireless networks. Skype 3.0 is free and can be downloaded from the App Store.

(via MacWorld)