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I will be setting up one apple id to use for all the apps for all my three kids on their three ipads, will they be able to facetime each other using the same apple ids? Or do I have to create different ids for them in order to facetime each other? Thank you.

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You can use the same apple id. Just add unique special email addresses to your apple id.

This link explains it nicely.

Do you want to place calls between two iDevices using the same Apple ID? By default, all devices connected to the same Apple ID utilize the primary email address associated with that Apple ID. This emails they'll all ring if a FaceTime call is placed to that email address. It also means you can't place a class between two devices, just as you can't use one home phone to place a call to your house and answer it with another phone. But luckily, Apple has provided a rather easy workaround for placing FaceTime calls on the same Apple ID.

To place a FaceTime call between two of your Apple devices, you will simply need to add a new email address to one of the devices. This will allow FaceTime to differentiate between the two and place a call to a specific device.

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Looks to be a working solution, just weird though. – Shane Hsu Jan 28 '13 at 16:09
Just add to contacts with names like My iPad or My iPod and you will not even notice. – donlaur Jan 28 '13 at 16:57

So far so good. You end up with ALL email addresses (that is your initial email address associated with your Apple ID AND all additional email addresses added under Settings > Facetime on any of your iOS devices) listed on EACH device (linked to your Apple ID) both under Settings > Facetime AND under Settings > Messages > Send & Receive.

You still have to select the desired email address on each device, both in Settings > Facetime AND in Settings > Messages > Send & Receive. And you possibly have to deselect any email address that previously was selected per device (e.g., the email address associated with your Apple ID that would be selected by default).

Do some testing by placing Facetime calls, and separate testing with iMessages, across your various iOS devices to be sure that you got it right.

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