To: r g potgieser who wrote (111 ) 2/8/1999 6:53:00 PM From: Frank A. Coluccio Read Replies (1) | Respond to of 1593
China Looks To Control Internet Telephony Services February 8, 1999 TOKYO, JAPAN, Newsbytes via NewsEdge Corporation : Despite a recent court case that found Internet telephony services do not infringe on China Telecom's international telephone monopoly, the Chinese government has announced its intention to crack down on Internet telephony services. Zhang Chunjiang, director of the Telecommunications Administrative Bureau under the Ministry of Information Industry, said the country is losing billions of yuan in international telephone call charges to Internet telephony operators and the ministry intends to "crack down very harshly on these illegal operations of IP telephony." However, he did not close the door entirely on Internet telephony services, saying that the government will license several operators to provide services on a trial basis later this year. The official's comments were aimed at the growing number of operations that have sprung up to resell Internet telephony to consumers rather than individuals using Internet telephony systems from their own home computers. In late January, a court in the city of Fuzhou, Fujian province, found two entrepreneurs did not brake China Telecom's international call monopoly by running an Internet telephone service. The landmark case was brought against the two brothers after they began offering cut-price telephone in competition with that offered by state-run China Telecom. The Internet service calls were less than half the price of those on China Telecom. The two successfully argued that Internet telephony should be considered an Internet and not telephony service and as such is open for competition.