The Apple iPhone just became an even more powerful communicating device due to the recent availability of a Skype application.

Skype has been available for PC’s for some time now. It allows you to make free PC-to-PC calls over the internet. It also has the ability to call landline and mobile phones, but there’s a fee for that.

Skype reportedly only works when you connect via WiFi but… the video below shows that the Skype application for the Apple iPhone works with AT&T’s 3G network. It could simply be due to the fact that the OS being used in the video is the iPhone 3.0 software, which is not final.

[via iPhone Savior]