China VoIP operator could face years in jail

A man suspected of managing an illegal VoIP telephone service in China faces a prison sentence of at least five years if convicted, according to a China Daily report.

The man, identified only by his surname Zou and home town of Qingdao in eastern China, was arrested in March this year after police and telecommunication officials found a number of facilities including an illegal Internet gateway, said the report. The police investigation apparently began in February when Zou was advertising his cheaper call service to foreign companies, it said.

Zou's business is alleged to have taken in 3 million renminbi ($363,000) in VoIP business, said China Daily quoting a press release from local police. That amount represents a loss of around 10 million renminbi in revenue to state telephone companies when measured at their higher call rates, according to the newspaper. More than 300 companies were using the service, it said.

To continue reading, register here and become an Insider. You'll get free access to premium content from CIO, Computerworld, CSO, InfoWorld, and Network World. See more Insider content or sign in.

A man suspected of managing an illegal VoIP telephone service in China faces a prison sentence of at least five years if convicted, according to a China Daily report.

The man, identified only by his surname Zou and home town of Qingdao in eastern China, was arrested in March this year after police and telecommunication officials found a number of facilities including an illegal Internet gateway, said the report. The police investigation apparently began in February when Zou was advertising his cheaper call service to foreign companies, it said.

Zou's business is alleged to have taken in 3 million renminbi ($363,000) in VoIP business, said China Daily quoting a press release from local police. That amount represents a loss of around 10 million renminbi in revenue to state telephone companies when measured at their higher call rates, according to the newspaper. More than 300 companies were using the service, it said.

The Chinese government owns large stakes in all the major telecommunication operators and any attempt to cheat the carriers out of business leaves the government indirectly out of pocket.

The IDG News Service is a Network World affiliate.