After a series of updates that brought fullscreen video calling with “dynamic quality” and cheap calls to landline and mobile phones, the latest version of video calling + IM service fring for iPhone, released earlier this week, allows users to switch between the rear and front-facing cameras. Like in Apple’s FaceTime, you can switch cameras with the tap of a button and show your friend on the other end what’s around you and what are you looking at.

Another new feature of fring 1.2 is the possibility to purchase fringOut credit using your iTunes account. The developers have complied to Apple’s terms and have enabled in-app purchases as the easiest way to buy additional call minutes without even leaving the app.

This update also includes bug fixes and “improved battery efficiency”, but it’s no universal yet. We don’t know if the fring developers are planning to release an iPad 2 version, but we think it’d be perfect to extend the service to other iOS devices. You can find fring for free in the App Store.