Tom's Guide posted a news story that Microsoft is supposedly working on a FaceTime competitor for the Windows Phone platform.

According to the unnamed employee, the application is expected to be included in Microsoft's Live service so that it can be distributed and used across various Microsoft devices and platforms. There was also indication that the application may not arrive in time for Windows Phone 7, instead making its debut on Windows Phone 8. The employee also added that Windows Phone 8 may even require a front-facing camera.

  Microsoft Working on FaceTime Competitor