Skype video calling is supported over WiFi and 3G* data connections. You can enjoy video calls with users on all Skype desktop versions and with other Skype for iPhone, iPod Touch, and iPad users.
You can make video calls in both portrait and landscape mode and use both front and back cameras. Users on iPhone 4, 3GS and iPod Touch (4th Generation) can enjoy full 2-way video calling. Users with iPod Touch (3rd Generation) and iPads can receive video.
Video calling with Skype requires iOS 4.0 or above to be installed on your device. Skype 3.0 for iPhone will also work on iOs 3.x, but without video support. Facetime now has a real fight on its hands even though it is open source no one has really taken to it that is not an iPhone 4 or new iPod Touch owner. Yes there are a lot of them but not enough to corner the market of video calls.