The Skype app has just been released for Android Phones. This Skype version includes all the skype 
functionalities which includes free Skype-to-Skype calls, instant messaging, VOIP Â calls etc. You need a 3g connection or wi-fi to run this app. But Skype recommends a wi-fi connection to run this app smoothly! Also make sure that you atleast have of the Android OS 2.1 version.
The Skype app for Android phones are available from this link.