Looking to protect its state-run telco operations from those pesky VoIP upstarts, the Chinese government has sanctioned Shangai Telecom's right to block VoIP traffic. BizReport claims the government won't issue new licenses for computer-to-phone calling services until 2008. The company behind the technology being used by Shanghai Telecom, Narus, is thrilled with the business opportunity, as evident by their Press release. In it, they claim the focus is for Shanghai Telecom to bring the "highest-quality VoIP experience to its customers."

Another company named Verso (mentioned last fall) hopes to cash-in on the p2p and VoIP blocking business, and has struck a similar deal with another un-named Chinese carrier. Verio CEO Monty Bannerman says American ISPs have shown great interest in their technology.

"They're all telling me they hate Skype and they're telling me that they want to do something about Skype," he says. "If you have something in your network that is costing you money and raiding your business model, I assure you you're going to do something about it."