Establishing Advantage in Wholesale IP Market with Chinese Contents

From Domestic to Overseas Steven Tan

Vice President, Global Carrier BusinessChina Telecom Global

May 2014

Contents

1 Company Profile

3 Strategy of Chinese Contents Focus

2 Telecom Market Trend in China

1

4 Value for Reference

World's largest fixed line operator with over 155 Million access lines in ser

vice ;

World's largest broadband operator with 100 Million subscribers;

World's largest CDMA mobile operator, more than 185 Million subscribers,

including 103 Million 3G Subscribers;

World's largest optical fiber network-83000 kilometers long;

Operating revenues reached RMB 321,584 Million with an increase of 13.6

% in 2013;

(source: 2013 Annual Report of China Telecom Corporation Limited)

About China Telecom

“Overall Best Managed Company in Asia” for 5 years in a row

LONDON

STOCKHOLMHELSINKI

MOSCOW

DUBAIMUMBAI

SINGAPORE

JAKARTA

HANOINEW DELHI

HONGKONG

SEOULTOKYO

SEATTLE TORONTO

DALLAS

CHICAGOSAN JOSE

LOS ANGELESMIAMI

WASHINGTON DC

SAO PAULO

JOHANNESBURG

NEW YORKFRANKFURT

PARIS

HO CHI MINH CITY

MILAN

VANCOUVER

ISTANBUL

NAIROBIKUALA LUMPUR

PERTH SYDNEY

BANGKOK

Over 46 POPs around the world

Branches and Representative Offices in 24 countries

About China Telecom Global

POP

POP UNDER CONSTRUCTION

Contents

1 Company Profile

3 Strategy of Chinese Contents Focus

2 Telecom Market Trend in China

1

4 Value for Reference

Internet Market in China,full of vitality

Source： CNNIC

As of the end of December 2013, total Internet user in China reached 618 million, with a penetration rate of 46.11%.

China Internet User and Internet Penetration Rate, (0000s), 2009.12-2013.12

Mobile broadband connections is expected to reach 543 million in 2016, 2.2 times of the fixed broadband subscribers.

Source：OVUM

Mobile Internet Prospects in China, very Promising

China Fixed and Mobile Broadband Subscribers Forecasts, (K), 2009-2016

110,260

244,530

10,220

542,700

2009 2010 2011 2012 2013 2014 2015 2016

Fixed Broadband Subscribers Mobile Broadband Connections

China International Bandwidth, Keeping the Upward Trend

As of the end of December 2013, China International bandwidth reached 3407Gbps, indicates an increase of 455% within the past 3 years.

Source： CNNIC

Contents

1 Company Profile

3 Strategy of Chinese Content Focus

2 Telecom Market Trend in China

1

4 Value for Reference

Chinese Contents Focus of CT

IDC service in China

Tier-4 Domestics IDCs in China

Beijing Beijing ShanghaiShanghaiGuangzhouGuangzhou

XianXian ChengDuChengDu

Design, Build & Operate the Tier-4 IDCs

China Telecom Inner Mongolia Information ParkExtra-large scale Cloud Computing DC

42 buildings and over

100,000 racks

Construction area of ultra

large scale: 1500 mu (=100 hectares)

Total investment:

RMB 12 billion

Distribution of China Telecom’s racks after the establishment of the Park

Inner Mongolia has>100,000 racks, accounts for over 50%

Adapting to Local Conditions, Green & Environmental Friendly

Solar Energy Wind EnergyNatural Cooling

PUE 1.27

The annual average temperature is 6.3 degrees.

There are over 200 days in a year with temperature lower than 10 degrees to achieve

natural cooling.

The sunshine duration exceeds 1600 hours/year to can utilize solar energy in

public areas.

Wind energy is in large reserves, therefore household

lightning and electricity consumption leans largely on

wind power.

Our global network consists of over 33 Submarine cables and high speed terrestrial links with a total international transmission capacity more than 2900G, covering 72 countries and regions

Global Networks

Intra - AsiaIntra - Asia

To Americas

Transit PacificTransit PacificTransitTransit AsiaAsia EuropeEurope

CT Cloud Computing Platforms in China & Overseas

Contents

1 Company Profile

3 Strategy of Chinese Content Focus

2 Telecom Market Trend in China

1

4 Value for Reference

Connecting Australia to Asia Hubs

Perth-Singapore48ms

Sydney-HK117ms

Sydney-Perth56ms

Singapore – HK36ms

Hong KongHong Kong

SingaporeSingapore

ContentsContents

ConnectionsConnections