VoIP (Voice over Internet Protocol) is a new communications technology in which voice is transmitted over a computer network. VoIP’s greatest appeal is cheap call rates. VoIP service enables users to overcome the limits of distance and time at a very cheap rate compared to the conventional long-distance telephone service.

In terms of VoIP, China falls more than three years behind the United States. While the US consumers place their focus on service providers’ value added services, Chinese consumers are still mostly interested in reducing telecommunication expenses. In the years to come, the Chinese consumer’s perception about VoIP would change.

Enterprises that are eager to reduce operational costs, college students who use campus resources and common households are expected to emerge as major subscriber groups of VoIP in China.