China Telecom has begun to block internet telephony service providers operating in China in a bid to shore up its flagging long-distance revenues, state media reported. CT plans to gradually extend the block nationwide, with European peer-to-peer-voice provider Skype Technologies SA having receiving blockages in Shenzhen already. CT has also compiled a "blacklist" of service users and threatened fines for those who circumvent the new blocks. Although Skype does not actually offer its PC-to-phone service in China, instead offering only voice calls between PCs, some China-based users have been able to access the PC-to-phone service.
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