VoIP illegal in China until 2008

Found on Ars Technica on Thursday, 23 March 2006
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Skype users in China will have to wait until 2008 to make phone calls from their PCs to landlines under new rules from the Chinese government. Wang Leilei, CEO of Chinese Internet group Tom Online, said that his government "is not going to issue VoIP licenses until 2008," and even then, nothing is assured.

Due to its popularity, Skype is a special target of the government's ire. Though the Chinese version of the software offered through Tom Online does not include SkypeOut (the name for Skype's PC-to-landline service), users can easily download the full software directly from Skype's website and use it to make international calls that are far cheaper than those available from China Telecom. China Telecom, a state owned firm, has apparently had enough of its upstart competition and managed to block most Skype calls last year. With VoIP apparently under central control, the government seems intent on taking its time in allowing the new technology into the Chinese market.

Looks like there won't be much competition from China in the next few years.