Despite a somewhat disturbing video blog about the new capabilities, the application is fairly democratic in that you don't need to have the most recent iPhone or Touch to enjoy this new-found functionality.
According to Skype you can:
- Make video calls to people on their computers as well as other iPhones (details below)
- Make free audio calls to anyone else on Skype
- Make great value calls to landlines and mobiles around the world
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They're feeding the Apple ecosystem and filling a void long-discussed by users.
Good on ya, Skype.