The rumors were true, Skype indeed will be landing on the iPhone this week. CNet got a preview of the app and likes what they see.
As expected, calls can only be made over Wifi. AT&T is simply afraid of VOIP taking over their voice business (which it will anyway).
CNet said:
Skype's screens are well organized and use the iPhone's ability to add filters, for instance, to sort your contacts alphabetically, or by who's online. There's chatting as well, though Skype's flagship feature is its VoIP calling that's free to other Skype users and an inexpensive per-minute fee to landlines. Calls on Skype for iPhone work only if you're in range of a Wi-Fi network, so your call quality will in part be at the mercy and strength of wireless networks n