Yahoo video calling application will be a free update to already available Yahoo Messaging app for the iPhone, iPod Touch & iPad on the App Store, and has some surprises hidden up its sleeve. The updated app work over 3GS/4 users running iOS 4.1. Yahoo! Messenger users on iPhone can now make free voice and video calls to their Messenger friends, low cost calls to land line or mobile phones--plus get new features like multitasking, instant notifications and free SMS.
This new app poses some serious competition to Apple's built-in FaceTime feature as it not only allows for video calling over 3G but opens up the door for video calling with many more users.
Download: Yahoo Messenger app with 3G video calling (iTunes App Store)