Yet I have 60mb download and 6mb upload, closed all programmes and it still doesn't work.
Even when I go to settings, it recognises the cam but automatically freezes.
Tested my cam from the desktop and works perfectly fine.
Has worked fine for the last 3 years, now suddenly it won't work.
Tried with 3 people all with decent download speed, not downloading/uploading at the time, same problem.
I'm not sure what you mean by freezes? The video feed freezes or the camera doesn't work at all? The call technical detail should give you some insight as to where the problem may be. You might want to try making sure both parties are running the same version you are. There could also be an issue with a specific version of Skype and your camera.
To resolve connection issues you can try disabling uPnP and 80/443 in Skype settings. On your router you can try forwarding UDP/TCP ports 1024-65535 or DMZ the IP of your computer. If you use a software firewall make sure Skype is allowed. You can also bypass your router in case it's not operating correctly (might require a reset/reload). Your contacts can configure themselves in a similar fashion as well. This increases the chance of you having a UDP connection to your parties without relays to ensure the highest quality and usage of your bandwidth.