Skype finally released an iPhone application as a free download off of the iTunes App Store. This brings full VoIP functionality on the iPhone but with the restriction that VoIP only works on WiFi and not on 3G. (However, iPhone app developers with OS 3.0 beta access have tested VoIP on 3G). So what are the functionalities that this app provides in addition to VoIP?

The Chat feature works even on EDGE (iPhone 2G) and on 3G. Unfortunately, it does not support landscape mode (no landscape keyboard for you) and you cannot swipe a chat session from the list to delete it (you need to open it and then close it).

The Skype app also integrates with the iPhone’s Contact or Addressbook. Makes it easier to call someone from your addressbook and get it routed thru the Skype network. In my case, I can call my relatives in the US for free (via one of the Skype packages that give you free, unlimited calls to US landlines) - talk about savings, huh? :)

How does it perform? I must admit that I was skeptical about its performance over local internet connections but connecting to the Echo/Test server of Skype was clean and clear. Calling a local number from the iPhone using Skype was surprisingly clear as well. NO lags, no dropped calls, nothing.

However, I am worried that the local 3G network won’t be able to handle the Skype requirements - but we will see. Will let you know if I get lucky and find a place with decent Globe 3G coverage.

The Skype iPhone app does not support multi-party voice conferencing. I checked out the options and there is no way to call another person whilst you are already in a call. Chat, of course, is a different matter.

Also, until Apple allows it, Skype app cannot run on the background and wait for incoming calls. Unfortunately, the current SDK does not allow this, but maybe, just maybe, in future incarnations of the iPhones - we will get this functionality.

So, if you are looking for a way to connect to your Skype buddies or make a cheap long distance or overseas call, no need to whip out your Macbook or Macbook Pro just so you can make that call.

To me, this saves me a lot of money calling my relatives overseas and also coordinating with research partners overseas. It is also one of my main tools for keeping in touch with my family whilst I am traveling. Now, one less reason for me to bring a portable computer for those short trips.