Could Skype, other VoIP get blocked in China?

Yet a week afterwards media sources in China and in the West erroneously reported that China had begun blocking Skype, rumors continue to surface that the software, which enables users to make phone calls via the Internet, will be banned. At a time when Twitter overflows with posts about the controversy, ZDNet Asia's sister site CNET received a tip that China's government was testing ways to block Skype and that officials would announce a ban at once week.

CNET could not independently confirm the tip nevertheless the overall situation illustrates just how much uncertainty surrounds VoIP (Voice over Internet Protocol) innovation in China. The speculation can be traced to two events. First, China's Ministry of Industry and Information Research posted a notice to its Web site Dec. 10 that said the government was working to "launch an effort to strike against illegal" VoIP (Voice over Internet Protocol) services, according to a story in The Wall Street Journal.

Skype, which has plans to raise up to US$100 million through an initial public offering, operates in China with the help of TOM Online, a Hong Kong-based media company. TOM Online insists that TOM-Skype operates legally. On Monday, the Journal reported that the service has reported no problems or given indication of any blocks by China. Some pundits, now, worry that China's government is interested in protecting state-owned telecommunications companies and their VoIP operations and that they perceive Skype and similar services as a threat.