It isn’t too surprising that Skype is being outlawed in various countries such as the United Arab Emirates. The unfortunate consequence of such actions is people used to getting 2 cent a minute calls find they are now 75 cents per minute. This is the same old story. The local phone company finds a way to block Skype and then their revenue skyrockets.

My take is the incumbent phone companies are generally in trouble around the world and they need to find new ways to generate revenue in a VoIP-dominated world. Even if Skype is banned, consumers will always find another way to communicate over IP. This is just the reality of smart people looking for alternative ways to communicate. The only thing incumbent providers buy by blocking Skype is time. Hopefully Etisalat, the Emirates' chief telecom and Internet provider is coming up with some alternate ways to provide value in the near future.

Read more about Skype banning from the AP and this and this Skype Blog. .