With China's telecom market having relatively high long-distance calling rates, VoIP has gained fast market recognition. Besides the big success of IP card services, telecom carriers are continuously pushing broadband IP telephony service forward in China, the high-tech market research firm says.

The number of broadband VoIP subscribers served by telecom carriers is expected to rapidly expand to 9.53 million by the end of 2011, up from 720,000 in 2006.

Another class of providers, virtual VoIP carriers (VVCs), provides PC to phone services by deploying soft-switching systems on Internet and media gateways between the Internet and public switched telephone networks. The Ministry of Information Industry has declared that broadband IP telephony service can be legally provided only by traditional service providers, thus VVCs are operating illegally and have little phone-number resources (most subscribers can only make outgoing calls). However, due to intense competition among voice service providers, and VVCs' lower price compared with traditional long-distance calling or IP card services, VVCs are having success.