Independent VoIP in China made illegal

Entering 2011 with a bang, the Chinese Ministry of Information and Industry Technology (MIIT) has moved to crack down on illegal VoIP services in the country. The catch is that if VoIP isn't being provided by the three state sponsored telecom companies (China Mobile, China Telecom, and China Unicom) it's illegal.

According to a report in the South China Morning Post, only the state's China Mobile, China Telecom, and China Unicom can offer VoIP services in China. While the MIIT's effort is clearly meant to protect the state monopolies, it might come at the expense of keeping innovative services and cost savings out of the hands of Chinese consumers.

The move has been trumpeted for the effect it will have on Skype, but other offerings like Google Talk will also be hurt. In the end though, it adds a chill to the promise of China being a major source of growth and change in the industry if VoIP gets mired in draconian regulation and bureaucracy.

For more:
- read the Forbes post
- read Reuters
- read the People's Daily

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