Unfortunately, it wont work over wifi, meaning you cant bypass VZ intl rates entirely when abroad . It also means we are SOL on communicating via VOIP with the Droid if in a country with no CDMA. Question is, how long will it take before we see an app that will allow us to bypass this restriction and use Skype on wifi. For crying out loud, the communist nation of Apple even allows it to work over wifi!
"Other wireless carriers have blocked the Skype app from running all the time. It's available on the iPhone only in Wi-Fi hot spots. In October, AT&T said it would relent and let the program work over its cellular network as well, but Skype has not yet released an application to enable that. Verizon's version of Skype mobile will not work over Wi-Fi, the companies said."
Verizon Wireless to let some smart phone customers use Skype over its wireless network
YOU ARE WRONG ABOUT THAT! If you tried other working Skype apps right now in the market, they already work with wi-fi. In fact, they only work well with wi-fi right now. I'm actually the opposite in thinking if it will work well in 3G, since the current apps don't work well with 3G. Try the Nimbuzz IM client in the market. It has Skype in it. I've already made a Skype to Skype call with someone else from abroad over wi-fi with it and it works. 3G, on the other hand, won't work on it so hopefully the new dedicated Skype app that they will have for us next month should work nicely even on 3G. Again, right now you CAN use wi-fi for the available Skype apps right now in the market.
I also do not think that Verizon or Skype will block wi-fi access for the app since that defeats the purpose of unlimited calling for Skype to Skype users.
Per the article, Verizon would be controlling how you accessed Skype by not making it wifi enabled , not how much you can skype with others. Whether this is true or not remains TBD.