China Blocks VOIP for 2 Years

China, recently in the news for its internet censorship policy, has now banned VOIP communication across the country. It has only blocked internet to landline type calls as it is not possible to block PC to PC telephony and enforce it. This has come as a blow to Skype, a leading VOIP company as it has closed up the market in China for at least 2 years. Skype makes very little money from its PC to PC service as it is free, the bulk of its revenue comes from PC to landline calls or vice versa. A Skype spokeswoman declined comment on how the ban would affect the company's plans.

This is a significant barrier to VOIP progression in China. The reason behind the ban is that Skype and other internet telephony companies pose a significant threat to the government's landline and wireless service which has been described as inefficient and expensive. Fortunately for the rest of the world VOIP continues to open up worldwide communication making it more easily accessibly and affordable.