Qik Video Camera Pro ($2.99)
link:
http://itunes.apple.com/us/app/qik-video-camera-pro/id366276301?mt=8
pronounced "quick"
I've used it to upload a 13-minute video shot with my iphone camera app (idr the file size, but it would have been about same size as yours). Qik allows you to import an existing video to the app, and it will automatically compress it. I noticed no serious reduction in quality after this. Your original video remains untouched in your Photos album. Once imported, the compressed copy can be uploaded to various places, including Qik's own servers (a free signup is required,
http://qik.com/info/overview). When the upload is done (it's reasonably quick... qik... haha), Qik provides you with a private link, and the option to email your friends with said link, to the video.
It's worked for me. Good luck.