Skype is upgrading its popular Internet telephone service to add video calling and a toolbar for Microsoft Outlook to find and dial contacts with a click.

The long-promised “2.0″ edition was launched Thursday by Skype, which was acquired last month by Internet auctioneer eBay Inc. for an eye-popping $2.6 billion.

While the Windows download is available to any user, the application is actually a Beta version, meaning the company is still tweaking the software into a final edition. Skype did not provide a timetable for the final edition or the planned release of a version for the Macintosh operating system from Apple Computer Inc.

The video feature will not cost extra, so Skype’s trademark computer-to-computer calls will remain free (Fees apply to calls to traditional and cell phones).

Source: AP