China Could Censor Skype

According to a circular from the Chinese government dated December 10, China will crack down on illegal Internet telephone providers, potentially killing or severely affecting Skype in the country. The report was subsequently recirculated by Reuters. Skype is still a subsidiary of eBay EBAY, and is planning to go public sometime in 2011. The statement came from the Ministry of Information and Industry Technology. Many see the move as protecting the Chinese phone carriers China Telecom CHA, China Unicom CHU and China Mobile CHL. Shares of China Telecom closed at $51.58, up 38 cents. China Unicom lost 23 cents yesterday to close at $14.14, while China Mobile lost 7 cents yesterday to close at $49.40.