Skype signs VoIP JV in China

Skype is looking to make inroads into the potentially lucrative Chinese market after inking a joint venture (JV) agreement with wireless internet operator TOM Online.

According to a report in The Register (5 September) the two companies are already buddies having forged an agreement to develop a simplified Chinese version of Skype's internet telephony software. Ten months on and the software has attracted 3.4 million registered users and Skype reckons now is the right time to plug the service to TOM's 70 million punters.

The Register says that under the deal TOM and Skype (split 51 per cent and 49 per cent respectively) will continue to develop Skype's VoIP software for the Chinese market and do more to flog it to users.

China is the world's largest mobile phone market by users with more than 360 million subscribers. The number of net users is also expanding rapidly and is expected to hit around 150 million by 2007, according to research from IDC, reports The Register.

Last week Skype signed its first agreement with a mobile telecoms operator - Germany's E-Plus - taking its low-cost services beyond the desktop and on the road.