In order to use Skype, can I purchase the $49 iPhone 3 or do I need to purchase a newer version?

By Summer 2011 I will need to make and receive phone calls from South America. Friends have suggested Skype. Will the $49 iPhone3 be sufficient or must I purchase a newer, more powerful version?
Thank you, in advance for whatever light you can shed on this question.
paul229

Regarding Skype or any other VOIP service, the iPhone 3G or 3GS will be sufficient for voice calls. You'll need the iPhone 4 for video calls.

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