Skype has updated its iPhone App to include 3G Skype-to-Skype voice calls. While version one of the Skype App supported VOIP calls via Wi-Fi, the latest version brings this functionality to the iPhone and iPod touch (2nd generation onwards) over 3G networks.

The company says Skype-to-Skype calls on 3G will be free (though you're still paying a carrier for the data of course) until the end of 2010 and will announce pricing - likely in the form of a monthly fee - in coming months.

“Using Skype on 3G has been the number one request among our iPhone customers,” said Russ Shaw General Manager for Mobile, Skype.

The free Skype App also offers faster start-up time plus improvements to the call quality indicator and dial-pad access from the home screen.