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Two big changes:

- you can video chat with people without an apple FaceTime compatible product.

- you can use it over 3G unlike FaceTime which is limited to wifi



- you can do voice only calls, which means your iPod Touch is now a phone


You could do that before the update.


thanks, I had no idea. I thought it was still text only


Most iPod Touches do not have a microphone =[




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