there are 405 million Skype users and this number is growing.

Calling landlines using Skype will incur a small fee, which may be higher than using your AT&T cell phone plan. For international calls, this new service could provide a large savings over the high cost of international calls using your AT&T cellular plan.

Beyond saving money, iPhone users will find the new application frees them from their computer when making Skype based calls. You can now use your iPhone or iPod Touch as a wireless handset for your Skype account if you have a WiFi hub in your home. You will need to add a headphone and a microphone to use the service on your iPod Touch.

While this new Skype service is a step in the right direction, iPhone users will not be able to call using their cell Phone connection. To use the new service on your iPhone or iPod Touch, you must have a WiFi connection available. Other drawbacks in this first version include the lack of conference calling, voice mail, SMS, and file transfer options that are available in the computer based Skype client.

So, if you want to make free calls on your iPhone, or iPod Touch, be sure to check out the new Skype application and see your cell phone costs decline.