Check this out. Communism is definitely trying to stifle company competition, and the end result will be keeping the service level where it is, not ever to make a market or product better. As usual. What bad things would come from VoIP? I know phone companies would either lower the price of their service or make it better for the consumer. Phone companies have a nice track record of abusing their customers because they've never had anyone else to go to. Now that VoIP is out there, these guys are really starting to worry about their future.
What China's really worried about is having people call THEIR citizens and not being able to listen in.
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