Unsurprisingly, the Skype looks more and more like a Windows Phone app and this is in line with Microsoft strategy in regards to its other apps that the software giant has ported to Android. Just take a look at OneDrive and Outlook apps to see what I mean.
Today, Microsoft published an update to Skype for Android that allow users to connect Skype to their address book. The result of this integration is once you verify your phone number when prompted by the app, friends in your address book will show up in your Skype contacts making it so much easier to find friends with Skype accounts. This is not limited to phone numbers as Skype will also check your friends with Microsoft accounts, these are Hotmail/Outlook.com/Live account, and suggest you connect to them.
On the privacy side of things, phone numbers are not made public. If you still worry about, say your phone number being accidentally made public, it is possible to deactivate this feature so you cannot be found by your phone number. Unless you're paranoid, I don't see any reason to disable this feature.
This update brings Skype for Android to version 5.0. However, the change log states that the connect to address book feature will be deployed "in the coming weeks". Until then, download or upgrade Skype in Google Play store.