Skype today announced the new version of its iPhone application that brings video calling to mobile users over both 3G and WiFi networks. The application called "Skype for iPhone" is available for download from the Apple App Store today and lets users make and receive free Skype video calls on their iPhone, iPad or iPod touch, and works over both WiFi and 3G connections.

Video calling snhances the user experience of Skype for iPhone, which is one of the top five free iPhone apps in 2010 according to Apple. Now, users can make and receive free Skype-to-Skype calls, call mobiles and landlines around the world at low rates, and now share more moments together with video on Skype for iPhone.

Users can place Skype video calls with their iPhone over both a 3G data connection or WiFi. The new Skype for iPhone app is compatible with the iPhone 4, iPhone 3GS, and iPod touch 4th generation with i0S 4.0 or above. Video receiving capabilities are available on the iPod touch 3rd generation and iPad. Calls can be made between devices using the new Skype for iPhone app and desktops including Skype for Windows 4.2 and above, Skype for Mac 2.8 and above, Skype for Linux and ASUS Videophone.

The updated app comes about a week after Skype suffered a major service outage that lasted 24 hours and cut off service for millions of users. In a Wednesday post on the company's blog, Skype's chief information officer, Lars Rabbe, said the problem was caused by a bug in a version of Skype's software for computers running Microsoft Corp.'s Windows operating system.