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SMEs brace for end of internet-phone era

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Amy Nip

Hong Kong entrepreneurs said it would be expensive for them to go back to long-distance telephone calls to the mainland, as Beijing looked to tighten its control of internet telephony.

Wilson Shea Kai-chuen, president of the Hong Kong Small and Medium Enterprises Association, said his company used to pay more than HK$20,000 a month for calls to the mainland.

Since adopting voice over internet protocol (VoIP) technologies for calls and videoconferences though the internet, the company now spends just a few hundred dollars a month.

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'The trend cannot be reversed ... I believe what the mainland government wants is to have everything under control. But that is a setback for the industry,' he said.

Most small companies are using the internet for phone calls, and their costs would increase if only a few telecommunications companies were authorised to provide those services, he said.

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Videoconferencing on the internet is useful for manufacturers: suppliers can show them live images of products during a negotiation, he said.

Internet calls have also replaced paperwork to some extent - companies can now document their business dealings by digitally recording their internet phone calls.

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