I got the 3 Skype phone on a six month contract at GBP 15 pcm.
Skype works well in the UK but is not supported outside the UK. It will not work either when latched onto the 3 network in Ireland (and therefore probably wouldn't work either in Austria, Denmark, Italy or Sweden). This is odd because the phone rang when I was Skyped in Dublin but the call would not connect when I answered it. I suspect 3 deliberately blocks it to force you to roam to make and receive calls. I'm glad I was able to get the six month contract.
The handset is fine, but the camera is very limited. You can't see anything on the screen in bright sunlight, and there is no zoom either - crap.