VoIP in China

March 22, 2006

There was a report on "VoIP in China" at TMCnet.com and Theregister retailed it yesterday. VoIP technology is a revolution brought by the IP prevalence. It lowers the operation costs of both the carriers and the consumers. See my previous post on "Skype blocked at China", where I expressed my points on the way in China for Skype and other web phones.

In fact, the revenue growth of those two fix line operators (China Telecom and China Netcom) depends on their broad-band internet access and some of the value-added services. But the growth of such two kind of services can not fill the revenue hole by voice revenue decline. Especially when the leading mobile operator – China Mobile claimed a few days ago that they would by far lower their roaming and inbound call price. That's a hard time for CTG and CNC, hurted by the "replacing consumption". The contribution of their PHS products is just to collect money by burning more money.

At 2007, the main four operators will get their own 3G licenses. And the consolidation and upgrade of their BSS/OSS systems will be reaching a milestone to support more multiple-play products. It's a critical point for CTG and CNC, who have huge scale local communication networks. Theoretically they will have a fair competition base.

Currently there are a drastic argument at engadget.com, arose by a post on "China gives VoIP two year sentence". I agree and appreciate the comments from Terence and LG and etc. China never ban Skype, never claim Skype illegal. People can use Skype just as other part of the world. China just doesn't want to grant such a license to permit INTERCONNECT with PSTN. That's the right of a government to decide when and how to grant such licenses, no business with the socialism and politics. Read the rest of this entry »