I have used Skype for donkeys years since it was first introduced and enjoy the video contact with my world wide scattering of grandkids,,,,,free of course but as far as I know you have to put money into an account to use the phone....much the same as any phone.....could be wrong but pretty sure on that as they sometimes try to get me to use this option and it seems to involve payment -----
To get the best from the video calls your phone would need a front camera as well as the usual one or you have to use a mirror to see each other....ipod touch works because it does have two cameras but does your phone.