With the news this week that Apple will allow third party developers to use the front-facing video camera within their applications comes a question about the life expectancy of Apple’s very own FaceTime. Is there enough of an individual market for FaceTime to make a name for itself, or is the competition too big to allow another player into the market? Some people feel FaceTime will be a huge success for Apple, but if so, they have a lot to get right in a relatively short space of time.

It seems AT&T finally warmed up to the inevitable, and it’s not that surprising. Net neutrality is all the rage right now, and a decision like this makes AT&T more open about its network. They might have been be forced into something similar as a result of the proposed FCC rules about net neutrality. (Net neutrality means that service providers would not be able to block certain applications from use on their networks.)

Skype does what you’d expect it to on the iPhone. You can use it to call other Skype accounts for free, and you can call non-Skype lines, but you’ll have to pay for those via Skype credits, which you can buy from within the app (it’ll launch Safari and take you to their online store). You can also instant message other Skype users, which won’t count towards your monthly text message cap. But the program has a way to go before it’ll truly please Skype users.

A little bit of a quieter week on the App Store, but we did see one big release. That would be Skype, of course. But, don’t worry, there were at least a few other cool freebies. So be sure to check out the list.

According to Reuters (so you know, it might still be a rumor or something), Skype will be released for the iPhone tomorrow. As to be expected, you won’t be able to use VOIP over 3G or EDGE, though you will be able to text chat over cell networks. Voice chat will be available over WiFi and may prove to be a great way to save minutes and money on your cell plan.