The new joint venture company would develop, customize and distribute a simplified Chinese version of Skype’s VoIP software, as well as premium services to Internet users and service companies in China.
The two companies would work together to enable integration between Skype’s PC-to-PC VoIP services and Tom’s more than 70 million wireless Internet users.
The companies also plan to leverage Tom’s mobile and Skype’s Internet knowledge to jointly develop new communication features for wireless Internet platforms.
Beijing-based Tom Online and Luxembourg-based Skype first teamed in November 2004 with a simplified version of Skype that the companies co-developed.
The co-branded software now has about 3.4 million registered users, making China one of Skype’s top three markets.
It indicates Chinese Internet users’ readiness to take advantage of the latest communication technologies available, said Wang Lei Lei, chief executive of Tom Online, in a statement.
While terms of the deal were not disclosed, the companies said the joint venture would be split 51% to Tom Online and 49% to Skype.
China is home to the world’s largest mobile phone market with more than 360 million subscribers. Internet usage in the county is expected to swell to about 154 million in 2007.
China’s communications market was worth more than $70bn in 2004, according to government numbers.
