Skype is to offer video calls as part of the latest version of its Internet telephony software. The company, who were acquired by eBay for $2.6bn, has today released Skype 2.0. The software features enhancements that the company describes as allowing people to stay in touch and express themselves online. Central to this is Skype Video, which enables users to download software that will enable them to see the person they're calling. The company has teamed up with Logitech and Creative who make webcams and headsets needed to use the software.

"At Skype we want to make talking over the Internet the most natural, simple thing for people to do all over the world," said Skype chief exec Niklas Zennström.

"With the release of our new software, it's never been easier for people to talk to one another for free, and now they can see each other with video as well," he said.