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China could be cracking down on internet phone usage

Protection of state owned phone companies (and their profits) to blame

By: Don Lynn from Dec 31, 2010 @ 16:57 CST

It's rough to get a virtual foothold in the Chinese market; just ask Mark Zuckerberg and Facebook. Now China could be looking to crack down on internet phone services like Skype and other VoIP services in order to protect state-owned telephone companies.

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The Ministry of Industry and Information Technology stated on its website that it's working to fight "illegal Internet phone services" which provide comparatively free information exchange in a country that likes to keep a tight lid on information flowing in and out. With the recent announcement of China now having over 450 million internet users, there's also a lot of money at stake for the Chinese government which has a stake in the telecoms. Skype and other similar services offer relatively cheap rates for the same services, and there's no doubt that keeping the money in their pockets is a large priority.

NEWS SOURCES:news.yahoo.com

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