Gradual deregulation of VoIP

CHINA is studying a new VoIP (Voice over Internet Protocol) policy and plans to gradually open the strictly-controlled Internet phone market to non-telecom firms from the second half, industry insiders said. At present, China bans the "PC to Phone" VoIP service, which allows users to make calls through a Web-linked computer to a normal phone at a much lower rate. China will issue the first VoIP license to a South China-based firm, which is not a telecom operator. China will open the VoIP sector to all companies in 2007, China Business News reported yesterday, citing unidentified sources.

"It's a sooner or later thing to open the (VoIP) market," said Chen Jinqiao, a senior official at the Ministry of Information Industry but he declined to reveal more details as "it's not the right time (to talk)."

Two weeks ago, Lu Yang, another MII senior official, said in Beijing the ministry was drafting a VoIP policy and it will organize a nationwide "PC to Phone" trial service, other media reported. VoIP is a technology that makes telephone calls through a broadband Internet connection instead of an analog phone line, which costs users one-twentieth or less compared with traditional communications, especially for international calls.

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