That glossy cell phone coming out of Cupertino seems to be learning new tricks left and right. The iPhone has been seen emulating the NES and playing Doom, but how about something that’s not all about fun and games? It turns out that the Apple iPhone is perfectly capable of video conferencing and an application has been developed that makes use of this functionality.

Mac Daddy World is reporting that a group of coders have gotten together to develop this application and they’ve designed it to utilize the iPhone’s integrated WiFi connection instead of EDGE, because, as you know, the latter connection would be far too slow to keep up with the needs of a streaming video conference. I’m not really sure how they’ve managed to use the camera — which is mounted on the back of the iPhone — but I’d hate to think that the workaround involves just a bunch of mirrors.

The video conference is achieved by relaying the compressed video through a server.