Truphone has launched a major upgrade to its free mobile VoIP application for the iPhone.

The latest version of the Apple handset’s first-ever VoIP app boasts increased ease of use, speed of function response, intuitiveness and simplicity – along with improved voice quality.

Truphone 3.0 also offers an integrated IM client which ties MSN Messenger, AIM, Yahoo Messenger, Google Talk and Skype compatibility into a single page.

Calls to users of Truphone, Skype and Google Talk are free over Wi-Fi.

Use over cellular data is also possible.

Similar improvements to Truphone for the Apple iPod touch are expected soon.

Geraldine Wilson, CEO of Truphone, said the upgrade dramatically has also improved its UI and account management tools.

"We’ve eliminated the need for compression by utilizing new advances in signal processing, making calls crystal clear," she said.

All in all, Wilson claims competitors will have a "tough time" matching Truphone 3.0 in terms of quality and performance.

The improvements certainly make Truphone a viable alternative to Skype, which also faces competition in the form of Vopium on the iPhone.

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