Tango Hits 1M Downloads, But Here Comes Yahoo

Mobile video chat application Tango, which launched a week and a half ago at GigaOM’s Mobilize conference, is touting some serious consumer adoption, with a million downloads in its first 10 days. But the app, which allows users to video chat with each other across both iOS (s AAPL) and Android (s GOOG) mobile device applications, will face some serious competition from a new Yahoo (s YHOO) Messenger app that allows video calling.

Tango said in a blog post today that it debuted as the top Social Networking application in the Apple App Store in nine countries, and was ranked in the top 10 Communications apps on the Android marketplace. And it’s not just due to takeup in the U.S.: the company reports that it’s received downloads in 125 countries around the world.

While Tango has a certain first-mover advantage when it comes to enabling video chat across multiple mobile operating systems — as well as across both WiFi and wireless networks — it could face some major competition from Yahoo. The newest Yahoo Messenger app hit the App Store yesterday, and as expected, it enables video calling across WiFi and AT&T’s (s T) 3G network.

As a free update, the new Yahoo app could quickly supersede Tango as the top mobile video chat application on iOS devices. And not only does it enable mobile-to-mobile video calling, but also lets users video chat with desktop Yahoo Messenger users, something that Tango has yet to enable.

It’s much too early to tell who will win out in the mobile video chat space, but with hot startups like Tango, as well as interest from major players like Yahoo, you can be sure that the competition will be fierce. Stay tuned, as we’re sure even more app makers will soon enter this space with competing offerings.

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