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Fring has recently added video calling support to the iPhone and iPod touch via Skype, So if you have iphone or ipod touch and fring is installed then can receive and make fring and Skype video calls entirely over Internet connection (for free!) and see the person on the other end.
Fring is available for free on AppStore, following video explains how it works.
But the catch is that it works only on Wifi as of now and you can not make outgoing Video call because of rear camera location on iPhone. But there is a workaround to receive Video calls while you are on 3G or EDGE network. If you have jail broken your iPhone, you can purchase and Install 3G unrestrictor which allows Skype Calls on 3G, It can make Video calls possible using fring while you are on 3G or EDGE network.
This feature of Video call is available on Version 3.0.0.4 and it works with iPhone 2G / 3G/ 3Gs
Some screen shots of the application
AppStore Link For Fring Updated For iPhone
