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02 Jan 2011
Skype users in China could be dealt a blow after the authorities reportedly declared the service and other internet telephony services like it illegal
According to the People's Daily, the decision was taken to protect the businesses of carriers China Telecom and China Unicom, which hold a duopoly in the telecoms market in the country.
As such, all VoIP communications will be illegal on the Chinese mainland except for those provided by the state-owned carriers, according to the ruling by Ministry of Industry and Information Technology.
"It's ridiculous," Kan Kaili, a professor at Beijing University of Posts and Telecommunications, told the People's Daily. "VoIP is a popular technology worldwide."
The news will be a blow to Skype users in the region and firms that use VoIP services to communicate cheaply with branch offices or partners on the mainland.
It will also present a significant challenge to Tony Bates, Skype's new chief executive and former Cisco senior vice president, as he tries to market the service to more businesses while taking the firm public.
Skype filed its intention to launch an IPO in August and expects to raise as much as $100m.
It remains to be seen whether internet users in China will be able to work around any restrictions on their VoIP service.
The authorities already ban web sites such as Facebook and YouTube, and filter internet traffic containing pornographic or politically non-conformist content.
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Do you agree?
Bollocks
The People's Daily article you link to says "Source:Shanghai Daily". 'Nuff said Kan Kaili is a director of a major phone-to-phone VoIP company in China.
Posted by: ryongsong 03 Jan 2011
No!!!
My sister lives in Beijing and we use Skype to communicate. Please China! ?!
Posted by: Pikachu 03 Jan 2011
Ridiculous
I use Skype while away in China to talk to my 7 year old daughter and 4 year old son back in the UK. How can this be fear? All so they can 'spy' on their own population. Surely there must be a way of allowing foreigners to use a service like this? Do they not realise that this like this will damage their country in the long run. They may be an econimic power now, but once europe and amarica are back on their feet, preventing chinese businesses from competing on a level playing field will only damage them. This is like the UK taxing its people to death, this will inevitably lead to the collapse of the UK economy. There is only so much you can extort out of the common man, before he gives up or rises up. When will the poeople of the uk get a backbone and fight those who are suppose to represent us and act in our best interests. vive la revolution!
Posted by: Joe Public 02 Jan 2011