Optical/IP Networks

China De-Skyping?

1:35 PM -- China Telecom USA has started blocking access to Skype Technologies SA, reports Reuters. The news agency is citing "local media reports and Internet postings." (Hmm, can you have a more vague source than that?)

Given yesterday's speculation that somebody wants to pay billions of dollars for Skype, this kind of thing makes you wonder how many regulatory and political risks are baked into the company. What are the due diligence people saying about a such risks? Say China shuts down Skype, or it encounters more heavy regulation, making it harder to connect with folks around the world. Would it still be worth $3B?

Skype, known for its free-form Internet culture, has so far operated as an international company in a sort of regulatory netherworld. But, you have to wonder, if it were bought by an American company -- or anybody else who'd bring it more clearly under jurisdiction of a local government -- might that story change?

— R. Scott Raynovich, Chief Skype Editor, Light Reading

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