The new chat client would bring video conferencing to the iPhone directly though the app, and for the first time, it would allow users to video chat PC to iPhone, and not simply iPhone to iPhone via FaceTime.
Yahoo will also be releasing the app for Android devices and will soon be available on the Android Market.
The Yahoo Messenger app uses the same technology as its desktop counterpart to connect for a video chat, meaning users would be able to video chat across different platforms as long as the Yahoo app is supported.
Mobile users would even be able to video conference with Android users, Windows users, Linux users, and Mac users, among others.
Video conferencing on the iPhone is currently only available between other iPhone users, and the only application that could utilize the feature is Apple’s FaceTime app (with the exception for Jailbroken devices).
Apple previously said the company would give third-party applications access to the front facing camera via APIs, but the company has yet to do so.
Once the new Yahoo Messenger app is available in the App Store, Apple should soon thereafter open up access to the camera on the iPhone. This is more and more likely given intensifying competition in the mobile space, and the emergence of new mobile devices (in particular Android smartphones) that are able to do video-conferencing on a cross platform basis.