Skype's Thursday-released update to its free iPhone application brings on video-calling capability to the iPhone 3GS; the iPhone 4; and the present, fourth-generation, version of the iPod touch. The update also enables third-generation iPod touch models and iPads to receive video calls.

The latest update - Skype 3.0 - allows users to make calls over the 3G network - the AT&T 3G mobile broadband - as well as to desktops; thereby making it one of the best overall mobile video calling applications of the present times.

According to PCMag Labs, calls made over 3G via the updated Skype application for the iPhone are nearly at par with those made over the Wi-Fi network. However, the notably good quality of the calls largely depends on the 3G connection of the users.

Noting that with the 3.0 update, the iPhone app makes calls in 320-by-240 resolution, at up to 15 frames per second, Skype specified that the updated version requires nearly 600 kilobits per second of upload and download bandwidth so that the video quality remains unaffected.

Despite the fact that Skype 3.0 is definitely a step in the right direction for Skype in particular and for video calling in general, the company still needs to add video call support for handsets running operating systems other than iOS.

Saying that mobile is a "huge priority" for Skype, a company representative said: "You will see a lot more updates on the mobile front-including Android-in the New Year."