I'll join the rest in saying Skype works well for me, don't know what the others are doing for it not to work.

hmm. Thanks to the SKYPE users for the update. Maybe it's my ISP. Anyway - all of the family are on iPads - so FaceTime will stay for us, until that gets blocked (low probability).

I got a 4G box from China Mobile. I think it cost around 600rmb for 6 months. I cant remember if there is a limit on the usage per 30 days or over the 6 months. In the few times I have used it, it hasn't let me down and Skype is perfect on it.
Its a little box made by Huawei that has a card slot which you put the 4G card (included in the price). You charge it up by USB and you can take it anywhere in Kunming and it should be within coverage. Its like a portable Wifi that runs on 4G signals. You link it to your phone or computer or whatnot and away you go.
I remember it has an extra 2GB that you can use outside of Yunnan if you go traveling, otherwise the other GBs (I know this is possibly the most important detail but I cant remember the GB limit on it at all) must be used in Yunnan.

That's all I remember. Oh, I got it at the China Mobile shop on DongJiaWan and needed my passport.