Most outlets were expecting to have to wait another week for this to be made available, but obviously the folks at Skype just couldn't wait any longer. Version 3.0 for iPhone is live, complete with the highly anticipated video calling feature.
Compatible with the iPhone 3GS, iPhone 4, and fourth-generation iPod Touch, Skype can now share real-time video with other iOS device users as well as PC, Mac, and Linux users. Video can also be received (but not sent) on the iPad and third gen iPod Touch. The service is free and works with 3G and WiFI data. FaceTime, it looks like the gauntlet has been thrown down.