| As China looks set to continue its relentless economic | | | | illegal in 2004 so that its so called 'market-order' could |
| growth into the foreseeable future, in all areas of its | | | | be preserved. |
| industries, how it reacts to the strong influence of VoIP | | | | China Telecom has made conversed with a number |
| will be carefully monitored by industry experts. | | | | of software and hardware vending companies over |
| According to BDA, an IT based consultancy, China's | | | | efforts to be able to monitor or disable skype more |
| China Telecom revenue got hit hard during the first half | | | | when it eventually becomes more popular. Indeed, new |
| of 2005, all because of the nation's increase in VoIP | | | | systems of monitoring have been implemented already |
| use. | | | | in Shanghai, Guangzhou, Shenzhen and Beijing. Further |
| Dongming Zhang, BDA's research director explained to | | | | implementation will happen nationwide during |
| UPI that the revenue from long distance calls, for China | | | | 2006-2007. |
| Telecom, had fallen by 2.8% from the first half of 2004 | | | | China Telecom, China Mobile, China Netcom, China |
| to the first half of 2005, from $1,858 to $1,805. | | | | Unicom, Satcom and Railcom are the major and |
| VoIP has by far and away been the greatest factor | | | | dominant telecom carriers in China. Regulators from |
| influencing the decrease in revenue. With China | | | | the government are able to control competition |
| Telecom's second largest money stream (18.2% of its | | | | between these companies through only allowing the |
| total 2005 revenue) coming from long distance calling | | | | use of telephone to telephone VoIP services via cards |
| the company is worried. | | | | that are pre-paid for by the consumer. |
| Foreign and Chinese media have in the past reported | | | | No other companies in China's VoIP market are |
| that the Shenzhen branch of China Telecom started | | | | allowed to operate. |
| to blacklist users, block VoIP calls and threaten to | | | | Many opinions from analysts worldwide vary widely on |
| punish anyone caught attempting to use Skype to | | | | the subject of whether lowered competition in China's |
| maneuver around imposed blocks. All this was made | | | | VoIP market is right or not. The mainland has the |
| to try to stop the sliding revenue in advance of the | | | | highest number of government imposed VoIP laws. |
| country's over 100 million internet users realizing | | | | These laws have come in to question often, concerns |
| available and free long distance PC based calling | | | | have been raised over the mainland's openness with |
| services were cheaper. | | | | its telecoms market, alongside the willingness to adopt |
| China made Skypeout internet telephone services | | | | new service technologies and software. |