Courtesy: Skype

As rumored for a CES release, video calls on the Skype iPhone app have arrived earlier than planned. Last night, Skype submitted the 3.0 update to the app store which added the ability to make video calls on the app. The video calling feature is compatible with iPhone 4, iPhone 3GS, and iPod touch 4. While you won't be able to make video calls, you can still receive them on iPad and iPod touch 3.

Expect video calling features to really take off in 2011 on mobile devices such as the iPhone. A front facing camera is almost becoming a standard for smartphones. Apple's new FaceTime video calling feature launched in June has been terrific, but crippled in the respect of its usability only on WiFi. Skype's app can be used over both WiFi and 3G.

9to5Mac quickly tested the feature immediately after its release and had this to say:

Seth and I just tested out the application and it looks very smooth on both ends. It even works in the background but your face gets frozen for the person on the other end (audio still works). Just like with FaceTime there is an option for the iPhone user to display either the front camera’s view, back camera’s or no camera.

So everything is looking pretty good right now. If you have the Skype iPhone app, make sure you update to version 3.0 to enable video calling between devices and device to computer.