China Telecom CDMA Terminal Value Chain Annual Conference 2013

16 Jan 2013

"China Telecom CDMA Terminal Value Chain Annual Conference 2013" co-organized by China Telecom and Qualcomm was held in Beijing on 14 January 2013. More than 1,000 participants from the value chain joined the conference. Mr. Wang Xiaochu, Chairman of China Telecom, and Mr. Paul Jacobs, Chairman of Qualcomm addressed the conference. During the conference, China Telecom mentioned it would strive to expand its subscriber base to around 200 million in 2013 driving the demand for various terminals of 100 million units in volume, of which 90% being handsets and more than 80% being smartphones. The Company will also commit to the creation of a full-range smartphone portfolio, providing customers with rich offerings.

In 2012, the CDMA terminal value chain saw encouraging progress in partnership expansion, making the number of partners in the upper stream reached 483, an increase of more than 70 partners year-over-year; the number of terminal brands totaled 236, up by 47 brands year-over-year. Over 1,500 models of CDMA terminals are available in the market, up by 36% year-over-year. The scale expansion of e-Surfing terminal market has effectively promoted its open channel operations, leading to further development of e-Surfing terminal.

China Telecom has built much stronger tie with various open channel partners. Leveraging the direct supply of terminals, it promoted a multi-channels, flattened layers sales distribution model, and co-ordinated the vendors and distributors for launching various means of direct supply, with a view to better fit the 3G smartphone sales. China Telecom has pioneered and established more than 50,000 3G handset usage coaching kiosks in collaboration with various after-sales service vendors and distribution channels to coach the customers on use of 3G services with a total of 17 million times. The said initiatives have initially formed the differentiated capability of our e-Surfing terminal operation.

2013 would be a promising year for China Telecom with strategic opportunities. The Company shall foster scale expansion and increase operational efficiency through dual-leadership in innovation and services; sustain effort to deepen corporate transformation; drive unreserved implementation of the "Three New Roles" strategy; adhere to the two key strategies of scale development and data traffic operation; enhance capabilities in innovation, services, centralised efficient management and operation, steadily increasing corporate and customer value. Chairman Wang added that China Telecom will take a more open attitude and more flexible measures to promote the prosperity of the terminal value chain, expand the mobile subscriber and terminal market scale while enhancing the return for the industry and the community.