October 25, 2004, 10:17 AM — Chinese Web site operator Tom Online Inc., in Beijing, has teamed up with Skype Technologies SA of Luxembourg to launch a version of the Skype VoIP (Voice over Internet Protocol) application and service, called Tom Skype, in China. But Tom Skype will not offer the ability for Chinese users to call fixed-line and mobile phones until next year, a Tom Online official said.
Skype is a peer-to-peer telephony application that allows users to make voice calls using VoIP to other Internet users for free or, through the SkypeOut service, to fixed-line and mobile phones around the world at a fraction of the cost of regular phone calls. The application is available in versions for Windows, Pocket PC, Linux and Mac OS.
Tom Skype also supports these operating systems and is currently available for download for free from Tom Online's Web site at http://www.tom.com.
While Skype is primarily used to make voice calls, the joint statement by Tom Online and Skype downplayed this capability, instead describing the software as a "communication tool and instant messaging (IM) service." By comparison, a Skype statement issued in July to announce the launch of a cobranded Skype application with PCHome Online Inc. in Taiwan described the software as "Internet telephony software."
Both Tom Online and PCHome Online are subsidiaries of Tom Group Ltd., of Hong Kong.
The subtle difference in language used to announce the Skype deals with Tom Online and PCHome Online highlights the sensitivity of offering VoIP services in China, where telecommunication services including Internet telephony are highly regulated and controlled by a handful of companies.
In March, Chinese police arrested a man surnamed Zou in the eastern city of Qingdao for illegally offering international VoIP services which cost Chinese telecommunications operators an estimated 10 million renminbi in lost revenue, the official China Daily newspaper reported at that time. Zou faced a prison term of at least five years, the report said.
However, Chinese regulators may not be able to prevent the proliferation of VoIP services indefinitely, said Duncan Clark, managing director of market analyst BDA China Ltd. "VoIP is going to be unstoppable," he said.
Tom Online is clearly gearing up for the day when it is able to offer a broad range of VoIP services, but the company has so far taken a cautious approach to the market.
"VoIP services are still quite restricted in China at this stage and our goal at this stage is really to enter into the IM market," said Elaine Feng, executive vice president of sales and marketing at Tom Online, in a telephone interview.
Tom Skype users will not be able to use the SkypeOut or the SkypeIn service, which lets users receive calls from fixed-line and mobile phones, Feng said. Tom Skype users cannot use these services because Tom Online is not collecting the necessary fees from users, she said.
However, Tom Online hopes to makes these services available to Tom Skype users some time next year through a partnership with a Chinese telecommunications operator, Feng said.
