Fring Brings Free 2-Way Video Calling to Android Phones
Fring, a multi-protocol IM, video calls and social networking client has introduced a much need feature for Android devices, free video calling using the front facing camera on phones.

Using the new Fring app from the Android market users will be able to video call people using their phone’s internet connection, Fring will auto-detect if the device has a front-facing camera and automatically transmit videos using it.
The 2-way video calls are supported on all compatible camera devices, however, on phones like Nexus One, HTC EVO HG and other devices which have front facing cameras, you will not require to turn your camera in order to show your face.
This is the first video call app on the Android Market to provide free 2-way video calls, so go ahead and download the app right away. More info on the official Fring blog.
Video of Fring 2-way Video Calling in Action
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"on phones like Nexus One, HTC EVO HG and other devices which have front facing cameras,"
Nexus One? Front-facing camera? No.
@Chris – Sorry about that, this is fixed