China Telecom Annual Work Conference Highlights

04 Jan 2008

On 23 December 2007, China Telecom held its annual work conference in Beijing. During the conference, Chairman and CEO of China Telecom, Mr. Wang Xiaochu, reviewed the company's operations in 2007 and planned its work for 2008. Chairman Wang confirmed a set of goals and missions for the new stage of strategic transformation in the next three years. He also advocated advancing strategic transformation systematically on the new stage and realizing the company's scientific development.

Vice Minister of the Ministry of Information Industry, Mr. Jiang Yaoping, was invited to attend the conference. In his speech, Mr. Jiang utterly recognized China Telecom's outstanding contribution in piloting strategic transformation as well as to the country's economy and social informatization. After giving an in-depth analysis on the development of the information industry in 2008, he hoped China Telecom would solemnly follow the spirits of 17th National Congress of Communist Party. In the new year, in light of the strategic planning of the country's informatization, China Telecom has to further strengthen its integrated competitiveness characterized by an innovative, consolidated and high-efficiency transformation. China Telecom should also propel informatization in areas such as e-administration, e-business, rural areas, education, public services and social security so as to attain business expansion and further contribute to the country's economic and social development.

Chairman Wang pointed out that China Telecom had continued to push forward on strategic transformation in 2007 and all the works had reached higher standards. The company has actively changed its business model and explored the potentials of brand management, in order to establish its corporate identity as an integrated information service provider. Better operation support has been established by strengthening precision management and optimizing resource allocation, organization structure and systems. China Telecom has also deepened its corporate reform and innovated its mode of development by setting up specialized operation units for Best Tone (information search engine) and ICT (information, communication & technology services) businesses. New systems and mechanisms were built for new businesses. Besides, China Telecom has constantly improved customer service, which allowed the company to fulfill its three service commitments. In the annual assessment of State-owned Assets Supervision and Administration Commission of the State Council (SASAC), China Telecom has been accredited as an outstanding state-owned enterprise and ranked as Grade A enterprise for three consecutive years.

After analyzing the market situations, Chairman Wang considered the next few years as a critical stage for China Telecom's strategic transformation and development. China Telecom will be facing unprecedented opportunities and challenges simultaneously. Based on practical experience gained from the transformation in last three years, China Telecom has raised the targets and requirements in the new stage of transformation so that the company is able to promote its strategic transformation to a wider, broader and higher level. China Telecom will seize the opportunities of global telecom industry trend to enforce innovative and customer-focused informatization strategy, striving for becoming a leading integrated information service provider in the industry. While continuing to develop the basic information infrastructure, the company will aggressively boost the offerings in the information service. Through strategically allocating resources to different customer segments, China Telecom will excavate, drive and satisfy customers' informatization demand. The company will also actively execute brand management to enhance customer value. Attaching more importance to innovation can create a new-style enterprise with customer-oriented and energetic systems and culture. In addition, China Telecom will deepen the reform of systems and mechanisms to construct a consolidated and high-efficiency management system and to cultivate a talent pool which is well adapted to the development of informatization.

In 2008, the subsidiaries at all levels within China Telecom will realize scientific development and fully advance its strategic transformation. The company's works in 2008 are fourfold. Firstly, it is to carry out brand management to promote scale development of different customer segments. China Telecom will provide differentiated high-quality information services to cater to the specific demands of industry customers, SMEs, segment customers and household customers, etc. In order to expand its business in rural markets, the company will extend the promotion of two competitive products, Best Tone and Biz Navigator, to rural areas. For furthering overseas expansion, the company will investigate tailor-made products of Chinese content to overseas customers. The company will also speed up the integrated development of Internet and value-added services to enhance the value of Internet media business. Secondly, China Telecom will enliven its development and enhance operational efficiency by deepening the reform of operational systems with innovative structures and mechanisms. The company will optimize distribution channel system and execute targeted and effective sales and marketing strategies. To this end, the company will also provide high-quality network support to realize differentiated service to its customers. Thirdly, China Telecom will implement precision management to enhance resource utilization and to promote CRM applications in sales and marketing. In cost management, precision management facilitates resource allocation with reference to customer segments and professional service segments, with assigned quantities and amounts on an integrated basis to promote overall development with due emphasis on transformational businesses. The company will implement precision logistics management as well as strengthen investment control to reduce investment risk. Fourthly, China Telecom will uphold incorruptible ambience and take all the measures that protect the wellbeing of the employees. The company will foster the leadership of its staff members, and regard execution capability, innovation capability and performance as the major criteria to select talents. The company will also endeavor to build a harmonious relationship with the labour force, promoting its brand new corporate culture and laying a favorable environment for the company's development.

Chairman Wang emphasized that the company should dedicate itself to changing its mode of development, enhance overall planning and coordination, and allocate resources efficiently in an attempt to drive the consolidated scale development of strategic transformation. China Telecom has to grasp the chance provided by informatization, seize the business opportunities in the market and sustain the healthy development of integrated information service. All these efforts will also contribute to the convergence development of informatization and industrialization while enriching customers' experience in the new lifestyle enhanced by informatization.