Telecom & Wireless

China Telecom and China Netcom Face Potential Skype Problems

Skype, a free peer-to-peer voice software which can be downloaded from the Internet, has recently launched a new function called SkypeOut, a radically new kind of IP service. The communication signals of SkypeOut are transmitted via the Internet, instead of through normal telecommunications networks.

According to published reports in China, Skype's launch in China may decrease telecommunications charges in the future.

Users of Skype take advantage of China's loosened policies on the Internet+gateway+telephone network, and this no doubt constitutes a challenge to the IP and international calling service of China telecommunication operators like China Telecom and China Netcom.

In order to compete with this newcomer, these telecom operators will either have to seek ways to block the signal from SkypeOut or lower their prices.

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