China Telecom Annual Work Conference Highlights

08 Jan 2010

On 23 December 2009, China Telecom held its annual work conference for the year of 2010 in Beijing. During the conference, Mr. Wang Xiaochu, Chairman and CEO of China Telecom, made his work report titled "Changing Mode of Corporate Development and Enhancing Innovation Capability to Achieve New Breakthroughs in Informatization Services". In 2010, China Telecom will continuously i) deepen corporate transformation, ii) proactively change the mode of corporate development, iii) vigorously implement "Customer-Focused Innovative Informatization Strategy" and differentiated development, iv) intensify the efforts of structural enhancement, and v) strengthen precision management. China Telecom will further strengthen the confidence, promote innovative development and overall planning and co-ordination so as to overcome barriers and enter into a new phase of profitable scale development.

In 2009, China Telecom quickly expanded the scale of its mobile business and developed a new image of full services operator. Its industry informatization services, "BizNavigator", "One Home", "Best Tone", and ICT businesses performed well. Overseas businesses recorded remarkable growth and the provision of informatization services in rural areas have been accelerated. The Company has been accredited by internationally renowned financial magazines with a number of awards such as "The Best Managed Company in Asia", "The Most Promising Companies in China" and "Outstanding China Enterprise Award - Telecommunications". Meanwhile, China Telecom has also been awarded "The Valuable Corporate Social Responsibility Role Model Award" and "China's Corporate Social Responsibility Grand Award" by domestic reputable authorities. Mr. Xi Guohua, Vice Minister of the Ministry of Industry and Information Technology, who was invited to attend the conference, highly recognized China Telecom's achievement and wished the Company would accelerate structural enhancement, enhance the quality and effectiveness of corporate development, strengthen internal management, and continuously improve services standard. He also wished China Telecom actively fulfills its social responsibilities by promoting green and civilized network environment, and contributes to the economy, society and livelihood through its excellent information services.

Chairman Wang emphasized four key focus areas of the Company in 2010: i) deepening corporate transformation and changing the mode of corporate development to better serve the social informatization needs; ii) enhancing innovation capability and firmly adhering to differentiated development; iii) strengthening overall planning and co-ordination to realize profitable scale development; iv) consolidating "hard power", enhancing "soft power" and building "smart power" to construct a harmonious industry ecosystem. In 2010, China Telecom will adjust its front-end operational structure by establishing public customer department, global business department, customer service department and product center to satisfy the requirements of full services operation. Leveraging differentiated products and industry applications, the Company will further penetrate into government and enterprise customers, public customers and also the rural, overseas and northern China markets to speed up business development. In order to enhance customer satisfaction and loyalty, China Telecom will upgrade its broadband services bandwidth and promote network upgrade. The Company will optimize operation and maintenance systems to create premium mobile network, as well as strengthening unified IT system to enhance the support capability of informatization service. China Telecom will perfect its customer service system to provide good quality full services operation, and will strengthen brand promotion to establish a differentiated innovative corporate image. In order to breakthrough handsets bottleneck, China Telecom will stimulate the development of CDMA industry supply chain and will standardize its policies to promote handsets sales through open channels. The Company will develop new cooperation models to push forward the information services industry value chain capitalizing on mobile Internet. China Telecom will also enhance the cooperation with application service providers to build an industry application value chain driving synergy benefits, and create differentiated "Best Tone" service leveraging its premium businesses. For internal management, China Telecom will engage in new mind-set to improve management efficiency and effectiveness. The Company will also set up innovative assessment and resource allocation mechanisms, as well as financial management and auditing. China Telecom will strengthen the talents development and care its staff to realize harmonious development of the Company.