China Satcom, the smallest of China's six major basic telecom operators, has set foot in the VoIP market.

The Third Network Technology Company, a service provider that is mainly engaged in broadband telephone service, has told local media that it has begun cooperation with China Satcom to explore business opportunities in China's VoIP market.

The two sides will launch the "Sheng Yi Tong" broadband telephone service which can be used for calling through and between computers, fixed phones, Little Smart and mobile phones. The service, which is targeted at businesses, is as cheap as CNY720 per year and CNY0.15/minute for time-based local, long distance and international calls. Individuals also don't have to pay any fee when they call a business that has installed the service.

Services like these will be competing with Skype and MSN, two computer-to-computer calling services already entrenched in China.