To compete with Apple’s FaceTime application.
Neowin is reporting an “off comment” from a key WP7 employee who said that Microsoft is working on a FaceTime-like application for its Windows Phone platform.
When the employee was asked why the company would not just use Skype to enable video chat across the platform, he said that the application will ‘reach beyond the hand of Skype’. Microsoft plans to implement the feature onto its Live services so that it can be implemented on various other devices.
The site also hosts a screen grab of Microsoft.Phone.Media.Extended.dll which clearly shows that Microsoft is working towards a front facing camera application. The employee wasn’t able to tell if the app would feature in WP7 or WP8.