If you are already a Skype subscriber, all you need to do is to log in using your existing account, and all your Skype contacts appear on the phone. You can chat with them or call them up straight from the app. You can also add new contacts using the Android application. If you’ve bought Skype-out credits, you can also dial out a VOIP call to a land-line or mobile phone. If you’re planning to buying some Skype credits, be warned that if you don’t use them in a certain amount of time, Skype expires them – so buy only as much as you need.
With Skype, you can make VOIP calls using Skype using your 3G or WiFi connection. It seems that if you are a US user, you can make calls only using WiFi.
You’ll need Android 2.1 on your phone to install it though. Even with that version, some phones are not supported in this release of Skype. It doesn’t work on the Samsung Galaxy S for one. When I tried installing it, I couldn’t get past the log-in screen. I hope they roll out a fix soon.
You can download Skype for free from the skype.com/m or from the Android Market by scanning the QR code on the right.