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China Telecom To Block Skype

September 10th, 2005 · No Comments · Business, Telephony

Payphone in Shanghai

Reuters has an interesting story on how China Telecom is blocking Skype. Why you ask? Well it could have something to do with them charing $1 a minute to call Europe or the US while you can do it on Skype for a couple of cents. Seing as the average wage in China is so low (about 1 20th of your average wage in the west) they see Skype as a huge threat:

SHANGHAI, Sept 9 – China Telecom has started blocking access to a popular Internet telephone service that is threatening its long-distance revenue, according to local media reports and Internet postings.

China’s largest fixed-line phone carrier recently began blocking access to service from Skype Technologies SA, a European-based Internet telecoms services provider, in the affluent southern city of Shenzhen near Hong Kong, according to the reports, including one in the Shanghai Daily.

They said China Telecom, whose broadband Internet service allows access to Skype, has plans to eventually block the service throughout its coverage area nationwide.

They also said the carrier has created a “black list” of people who use the service in Shenzhen, and threatened to fine anyone who tries to get around the new obstacles.

A China Telecom spokesman had no comment on the reports about the Shenzhen blockage, but gave a broader view.

“Under the current relevant laws and regulations of China, PC-to-phone services are strictly regulated and only China Telecom and (the nation’s other fixed-line carrier) China Netcom are permitted to carry out some trials on a very limited basis,” he said.

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