Check out photos of the Telectroscope here
It comes complete with a highly entertaining back story of a 19th inventor's vain attempt to build a telescope linking London to the Big Apple. Featuring vintage blueprints and sketches, the mock history is a really nice touch.
In reality the Telectroscope was installed by Artichoke and is the brain child of London based artist Paul St George. Sadly there is no real tunnel between London and New York; instead the Telectroscope uses broadband internet to relay real time video images between the two cities. And while it's probably not going to challenge Skype it's a really nice idea.