Skype's new iPhone app: Net calling done right

Previously, the app had to be open to receive calls - the modern day equivalent of sitting by the phone waiting for it to ring. The update not only lets calls come in when you are doing something, anything else on your phone, it lets calls come in when the phone is locked. In other words, the app makes Skype service feel indistinguishable from your regular phone service.

The app, now available at the iTunes App Store, is a huge step forward, and not only for people with family and friends abroad, for whom Skype is an indispensible part of everyday communication. It's also a step forward for those exploring ways to cut back on their cellular voice-call minutes (though any calls running on 3G will still use up data, which is no longer unlimited).

The advent also opens the door for other VOIP providers to innovate on the iPhone. Hopefully developers of many apps, from Google Talk to Line2, will create their own take on the phone-within-a-phone.

As cool as it is - and as eagerly awaited since Apple demonstrated an early version of it back in April - the Skype upgrade has caused some grumbles. Apple just started shipping the iPhone 4, a phone with a front facing camera intended for video-conferencing. The computer versions of Skype all include video support, so some people are mad that the update lacks it.