report specification

CH

INA TELEC

OM

MU

NIC

ATION

S CO

RPORATIO

N LIM

ITED

China Telecommunications Corporation Limited

Address: No. 31 Financial Street, Xicheng District, Beijing, ChinaZip Code: 100033Website: http://www.chinatelecom.com.cn

2018 CSR REPO

RT

01

REPORT SPECIFICATION

Inspection and Quarantine of China and the Standardization Administration of China, the “CSR Management Scheme for ICT Industry in China” (2016 version) issued by China Association of Communication Enterprises, the “Guidelines for Preparation of CSR Reports in China” (CASS-CSR4.0) issued by Chinese Academy of Social Sciences, as well as the “Sustainability Reporting Guidelines” (G4) by the Global Reporting Initiative (GRI).

This is the 2018 CSR Report of China Telecommunications Corporation Limited. It covers the whole year with some sections beyond this time frame.

5JNF�'SBNF

Organizations covered in this report include China Telecommunications Corporation Limited, its branches and subsidiaries held by it. In the report, China Telecommunications Corporation Limited is also referred to as “China Telecom (CT)”, the “Group Company”, “the Company”, “we”, etc.

4DPQF�PG�0SHBOJ[BUJPO

This is an annual report that is released every year.

3FMFBTF�$ZDMF

This report responds to the major topics concerned by China Telecom’s stakeholders to the greatest extent, including regular topics and annual highlights. Data and stories are mainly collected internally with some references to public media news. Amounts of money herein are all in RMB unless otherwise stated.

$POUFOU�%FTDSJQUJPO

This report was compiled by taking references from the “Guidelines for Central SOEs to Fulfill Corporate Social Responsibilities” and the “Guidelines for SOEs to Better Fulfill Corporate Social Responsibilities” issued by the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC), the “Guidelines for Preparation of CSR Reports in China” (GB/T 36001-2015) issued by the former General Administration of Quality Supervision,

3FGFSFODF�4UBOEBSET

Information disclosed in this report is true and aims to reflect CT’s market, social and environment performance in an objective and comprehensive manner.

(VBSBOUFF�PG�3FMJBCJMJUZ

Our CSR report is available in Chinese and English, in print and online. The online version can be downloaded from our website (http://www.chinatelecom.com.cn).

China Telecom has been publishing CSR reports for 9 years consecutively. For more information on the Company’s fulfillment of its CSRs, please visit our website for inquiry or download and read previous CSR reports.

"DDFTT�UP�3FQPSU�BOE�&YUFOEFE�3FBEJOH

Address: Corporate St rategy Depar tment , Ch ina Telecommunications Corporation Limited., No. 31 Financial Street, Xicheng District, Beijing

Zip Code: 100033

Fax: 86-10-58501484

E-mail: [email protected]

$POUBDU

02 03China Telecom 2018 CSR Report

01

04

06

11

16

20

39

43

49

54

56

63

68

72

74

76

79

CONTENTS

81

81

82

85

86

87

8807

08

REPORT SPECIFICATION

DIALOGUE WITH THE MANAGEMENT

TOP MANAGEMENT

-":�5)&�/&5803,�'06/%"5*0/�'03�)*()�26"-*5:�%&7&-01.&/5

01

Build Developed Fundamental Networks

Ensure Safe and Smooth Network Operation

Propel Intelligent Network-Oriented Evolution

$3&"5&�"�#&55&3�-*'&�8*5)�)*()�26"-*5:�%&7&-01.&/5�50(&5)&3

03

Serve Customers Wholeheartedly

Facilitate Growth of Employees

Practice Green Development

Make Earnest Efforts to Social Welfare Undertakings

Fulfill Overseas Responsibilities

&/)"/$&�7*5"-*5:�"/%�$"1"#*-*5:�'03�)*()�26"-*5:�%&7&-01.&/5

04

Deepen Corporate Reform

Promote Smart Operation

Strictly Perform Legal Compliance

)*()-*()5��$0/53*#65&�50�107&35:�"--&7*"5*0/�5)306()�4*9�"1130"$)&4Undertake the Important Task of Poverty Alleviation

Fixed-Point Poverty Alleviation and Partner Assistance

Poverty Alleviation in Other Places

AFTERWORD

About Us

Table of KPIs

Main Honors

Outlook

Rating Report

Reader Feedback FormHigh-Quality Development Waits for No Man

Perform High-Quality Development Responsibilities

.07&�508"3%�)*()�26"-*5:�%&7&-01.&/5

#0045�5)&�)*()�26"-*5:�%&7&-01.&/5�0'�%*(*5"-�&$0/0.:

02

Cooperation for Digital Economy Development

Facilitate the Upgrading of Traditional Industries

Assist the Improvement of People’s Livelihood

25

26

30


Q: What actions did China Telecom take in performing its responsibilities in high-quality development in 2018 and what results have been achieved?

KE Ruiwen: In 2018, we learned and implemented thoroughly Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the 19th CPC National Congress, and strived to move toward high-quality development, which have made good results.

In terms of laying the network foundation, we energetically built land-sea-air-space integrated information networks. Our 4G network has covered 91% of the administrative villages, the fiber-optic broadband network has covered 70% of the administrative villages, and the total volume of satellite network broadband in China reached 300MHz. We accelerated the development of network-based poverty alleviation and universal service, comprehensively completed the assumed task of optical cable access for 52,000 administrative villages, and realized the dual 75% coverage of fiber-optic broadband and 4G networks in the administrative villages in areas of extreme poverty like the “three regions and three prefectures” (the “three regions” refer to Tibet, four prefectures of southern Xinjiang-Hotan, Aksu, Kashi, and the Kirgiz Autonomous Prefecture of Kizilsu, and the areas of Sichuan, Yunnan, Gansu, and Qinghai provinces with large Tibetan populations; the “three prefectures” are Liangshan in Sichuan, Nujiang in Yunnan, and Linxia in Gansu). The “speed up and fees down” campaign was further implemented. The domestic roaming fee for mobile traffic has been comprehensively canceled, the tariff for mobile traffic was 67% lower than that of the previous year, and the tariffs for international roaming traffic in over 60 directions were 50% lower than that of the previous year. The average access rate of wired broadband was raised to 121Mbps while the unit bandwidth cost was 41% down compared to that of the previous year. The standard tariff for SME-oriented business private line was reduced by 67%. We continued the building of superior networks. The 4G network quality in mobile traffic and voice service-intensive settings, such as high-speed train, expressway, colleges and universities, high-density housing areas, high-flow business districts, and subway, has been enhanced continuously. The pre-commercial operation of VoLTE (4G network-based voice) service has started. We strengthend the management of network and information security, prevented and dealt with diversified network and information security risks, and the number of cyber security loopholes of China Telecom announced by the Ministry of Industry and Information Technology (MIIT) decreased significantly compared to that of the previous year. We faithfully fulfilled our mission of ensuring the safety and smooth flow of communications, fought against natural disasters such as mudslides and landslides, typhoons “Mangkhut” and “Ampil” and the Mojiang earthquake in Yunnan, and successfully completed the communications guarantee for events such as the SCO Qingdao Summit and the First China International Import Expo.

In terms of boosting the high-quality development of digital economy, we advanced the development of five ecological circles such as intelligent connection, smart home, Internet finance, DICT (digital ICT) and the Internet of Things to provide convenient and practical intelligent application services for customers innovatively. Our mobile service subscribers reached 300 million and wired broadband users reached 170 million. IPTV users reached 120 million households, BestPay transactions of individual accounts exceeded 320 billion yuan, DICT provided services to more than 20 million enterprises and institutions, and the number of IoT connections approached 110 million. We enhanced communication with partners from different sectors and industries, carried out multi-direction, multi-level and multi-form cooperation, and implemented a large number of projects in the fields

of intelligent manufacturing, smart agriculture, smart transportation and logistics, smart government, smart education, smart healthcare, smart old-age care, and smart community, to assist the upgrading of traditional industries and the improvement of people’s livelihood.

In terms of creating a better life together, we served customers attentively, opened channels for users’ complaints or demands, intensified the protection of users’ personal information, and kept improving our customer services. As a result, the customer complaint rate was below the threshold set by MIIT while customer satisfaction related to mobile and fixed Internet access was still at a leading level in the industry. We actively helped employees to grow, strengthened the training of professional talents and gave full play to their specialties. We carried forward the spirit of model workers and craftsmen, and relied on innovation studios to mobilize workers to make innovation on their posts. We commended or promoted more than 5,500 pieces of employees’ post innovation achievements. 21 employees won the title of “Technologists of Central Enterprises”, 122 employees won the title of “Technologists/Skilled Workers of the Group”, and 498 “Best Small CEOs” were awarded by the Group Company. We implemented green development and new results have been achieved in energy conservation and emission reduction with a 15% decrease in energy consumption per unit of information flow as compared with 2017. We made full contribution to poverty alleviation in six aspects – network, ICT application, industrial development, employment, intellectual, and public welfare. Our Big Data Management Platform for Precision Poverty Alleviation provided services to over 38 million registered poor people in over 930 counties of 15 provinces/autonomous regions/municipalities directly under the central government. New progress was made in the construction of information infrastructure in countries/regions along the “Belt and Road”.

In terms of enhancing corporate vitality and capability, we deepened the three-dimensional inter-driven reform comprising “segment contracting, professional operation and inverted pyramid support”, and set up 58,000 contracted segments. We promoted standardized and contractual management, optimized the incentive mechanism and production operation and management processes, further stimulated the vitality of entrepreneurship and development of grass-roots employees, and improved the efficiency of institutions at all levels in serving grass-roots units and responding to the market. We carried forward the reform of the technological innovation system, integrated the R&D strength of the enterprise, and improved the research and application development capabilities of key technologies such as 5G, next-generation Internet, cloud computing, big data, and IoT. We obtained 823 new patent licensing. We advanced the reform of the product innovation system, and set up new capability centers such as cloud computing, DICT application, IoT and smart family, to enhance product innovation capability. We further drove intelligent operation, and our data operation capability has been significantly improved. The number of APIs opened at the big data platform has exceeded 1,000, and the big data capability has been invoked 1.9 billion times to support precision marketing, fine services, lean network operation and accurate management. Customer service robots have been further popularized with a cumulative service volume of 480 million.

For high-quality development, time waits for no man. In 2019, we will take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guide, thoroughly implement the requirements of high-quality development, accelerate work in this aspect, and strive to achieve practical results, and make new and greater contributions to the building of a moderately prosperous society and a great modern socialist country in an all-round way, and sustainable economic and social development.

Q: The Report of the 19th CPC National Congress pointed out that, China’s economy has been transitioning from a phase of rapid growth to a stage of high-quality development, which is a pivotal stage for transforming our growth model, improving our economic structure, and fostering new drivers of growth. As a major communications operator and a central enterprise, what’s the understanding of China Telecom of its responsibilities to high-quality development?

KE Ruiwen: Our economy has been shifting from a phase of rapid growth to a stage of high-quality development. This is a major judgment made by the Party Central Committee with Comrade Xi Jinping as its core based on the international and domestic environment changes, particularly the changes of our country’s development conditions and stages. It has great realistic and far-reaching historical significance.

High-quality development is the development that can well satisfy the people’s increasing needs for a better life, that represents the new development philosophy, and where innovation becomes the primary driving force, coordination becomes an endogenous feature, greenness becomes a normal pattern, openness becomes the only road and sharing becomes the fundamental objective. More specifically, high-quality development is the change of economic development from “have or not have” to “good or bad”. Promoting high-quality development is a necessity for sustained and healthy economic development, for adapting to the change in the major social contradiction, for building a moderately prosperous society in all respects and fully building a modern socialist China, as well as for following the development of economic laws.

High-quality development is a symbol of economy developing into a new era, and is bringing about a wide and profound change in our economic field and putting forward new requirements to enterprises in fulfilling responsibilities. As a central enterprise and a basic telecommunications operator, the Party Central Committee, the State Council, the ministries as well as all sectors of society have many expectations on us in leading the practice of high-quality development. We should deeply comprehend the rich connotations and practice requirements of high-quality development, consciously shoulder the responsibilities for high-quality development, keep improving the capability for innovation-driven development and sustainability, and endeavor to achieve high-quality development of ourselves. Meanwhile, we should give full play to our role as a main force of ICT application, and actively assist the transformation and upgrading of different industries under the help of ICT application to contribute to the high-quality development of the whole society.

Firstly, we should make great efforts to lay the network foundation for high-quality development. The telecommunications industry is a

KE Ruiwen

Chairman & Party Secretary, China Telecommunications Corporation Limited

DIALOGUE WITH THE MANAGEMENT

strategic, fundamental and pioneering industry of the national economy, and the communications network is an important support for driving high-quality development. We should vigorously implement the cyber strength building strategy, build developed fundamental networks, ensure safe and smooth operation of networks, and advance the intelligent network-oriented evolution, so as to provide strong and powerful network support to high-quality development.

Secondly, we should exert ourselves to boost the high-quality development of digital economy. Digital economy is a new driving force for high-quality development. We should follow the trend of information consumption upgrading and accelerated technological revolution, deeply understand the changes of customers’ demands of information services, promote in-depth integration between ICT application and new industrialization, urbanization and agricultural modernization, promote the integration between information technologies (ITs) and real economy, promote the integration between ICT application and government administration and social services, facilitate the upgrading of traditional industries and the improvement of people’s livelihood, and propel the conversion of the old and new driving forces.

Thirdly, we should endeavor to create a better life with high-quality development together. A better life is the final goal of high-quality development. We should take the aspirations of the people to live a better life as our direction, and try to provide more convenient and efficient products and services with more care to customers. We should facilitate growth of employees, practice green development, make earnest efforts to social welfare undertakings, fulfill overseas responsibilities, and contribute to the building of a better life together with all parties.

Fourthly, we should continuously enhance vitality and capability for high-quality development. Enterprises are the main force for achieving high-quality development. We should deepen corporate reform, keep enhancing our vitality and capability, improve our efficiency and effectiveness, play the role of a central enterprise as a pillar in high-quality development, and strive to be a competitive world-leading enterprise.

General Secretary Xi Jinping stated that, China’s economy is in a pivotal stage of transforming our growth model, improving our economic structure, and fostering new drivers of growth, which is a pass that we must get across. We should take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guide, give full play to the unique advantage of Party leadership and Party building, strengthen the sense of responsibility and urgency, and strive to create a new situation of high-quality development.


TOP MANAGEMENT

KE RuiwenChairman, Secretary of Party Leadership Group

GAO Tongqing Vice President, Member of Party Leadership Group

CHEN Zhongyue Vice President, Member of Party Leadership Group

FU Yongzhong Head of Discipline Inspection and Supervision Team, Member of Party Leadership Group

ZHANG Zhiyong Vice President, Member of Party Leadership Group

LIU Guiqing Vice President, Member of Party Leadership Group

ZHU Min Chief Accountant, Member of Party Leadership Group

WANG Guoquan Vice President, Member of Party Leadership Group

MOVE TOWARD HIGH-QUALITY DEVELOPMENT

As China’s economy has been transitioning from a phase of rapid growth to a stage of high-quality development, and a new process of economic development has started, we are facing new situations and requirements, and shouldering new responsibilities and missions.

While the economic scale is larger and larger, restraints from resources and environment are increasingly apparent, and the unbalanced and inadequate development problem becomes more prominent. The extensive mode of economic growth in the past, which mainly relied on factor input and expansion to achieve high-speed growth, has been unsustainable. It is urgent to change the mode of development, optimize economic structure and transform the driving force of growth.

Source: National Bureau of Statistics, “A Serial Report on the Achievements of Economic and Social Development in the Past 40 Years of Reform and Opening-Up”, etc.

High-Quality Development Waits for No ManSince the reform and opening-up, our economy has maintained high-speed growth. Now, the economic aggregate has become the

world’s No. 2, changing from a low-income country to an upper-middle income country, and made remarkable historical achievements.

Rapid Growth of China’s Economy from 1978 to 2017

Examples of Difficulties and Challenges in China’s Development

· The endogenous power of economic growth and the innovation ability are not strong enough, and enterprises need to improve their competitiveness

· The quality and efficiency of development are not high enough, the level of real economy needs to be improved, the economic structure needs to be optimized, and the quality of products and services needs to be enhanced

· The gap between urban and rural regional development and the gap in income distribution are still large, and the task of poverty alleviation is arduous

· There’s a long way to go for ecological environment protection

· There are some weak sectors in the field of people’s livelihood, and the masses are facing some difficulties in employment, education, healthcare, residence and old-age care

Average annual growth of 9.5%

82.7trillion yuan

367.9billion yuan

Up by 22.8 times, deducting price factor

59,660yuan

385yuan

Global No. 1, accounting for 11.5% of the global shares

US$4.1trillion

US$ 20.6billion

GDP GDP per capita Total sum of goods import & export


On December 25, 2018, the then President of the Group Company Mr. Ke Ruiwen delivered a report “Take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the Guide to Further the Reform, Accelerate Transformation and Drive the Company’s High-Quality Development” at the Working Meeting of the Group, which deployed the work on promoting high-quality development

In the Report of the 19th CPC National Congress, General Secretary Xi Jinping stated that, as socialism with Chinese characteristics has entered a new era, the principal contradiction facing Chinese society has evolved to the contradiction between unbalanced and inadequate development and the people’s ever-growing needs for a better life. Following this change, our economic development is also entering a new era, the essential feature of which is the transition from a phase of rapid growth to a stage of high-quality development. We must devote great energy to addressing development’s imbalances and inadequacies, and push hard to improve the quality and effect of development, so as to meet the ever-growing and upgrading needs of our people in all aspects, and to promote well-rounded human development and all-round social progress.

Promoting high-quality development is the fundamental requirement for identifying development ideas, formulating economic policies and implementing macro-control at present and in the coming future.

Excerpt of the Requirement of the 19th CPC National Congress towards High-Quality Development

China’s economy has been transitioning from a phase of rapid growth to a stage of high-quality development. This is a pivotal stage for transforming our growth model, improving our economic structure, and fostering new drivers of growth. It is imperative that we develop a modernized economy. This is both an urgent requirement for getting us smoothly through this critical transition and a strategic goal for China’s development. We must put quality first and give priority to performance. We should pursue supply-side structural reform as our main task, and work hard for better quality, higher efficiency, and more robust drivers of economic growth through reform. We need to raise total factor productivity and accelerate the building of an industrial system that promotes coordinated development of the real economy with technological innovation, modern finance, and human resources. We should endeavor to develop an economy with more effective market mechanisms, dynamic micro-entities, and sound macro-regulation. This will steadily strengthen the innovation capacity and competitiveness of China’s economy.

- Report delivered by Xi Jinping at the 19th National Congress of the Communist Party of China in October 2017

Excerpt of the Requirement of the Central Committee towards the High-Quality Development of the Cyber Security and ICT Application Cause

The cyber security and ICT application cause represents a new productive force and new direction of development. Therefore, it should take the first step in implementing the new development philosophy. We should accelerate the development of ICT application while focusing on building a modern economic system and achieving high-quality development, so as to drive and promote the development of new industrialization, urbanization and agricultural modernization as a whole... In order to promote industrial digitalization, we should make full use of new Internet technologies and new applications to transform traditional industries in an all-round, all-angle and all-chain way, improve total factor productivity, and release the effect of digital technologies in magnifying, superimposing and multiplying economic development. We should promote the deep integration of Internet, big data, artificial intelligence (AI) and real economy, and accelerate the digitalized, networked and intelligent development of the manufacturing, agriculture and service industries.

- Speech by Xi Jinping at the National Working Conference on Cyber Security and ICT Application in April 2018

Perform High-Quality Development ResponsibilitiesHigh-quality development is the development that can well satisfy the people’s increasing needs for a better life, that represents the

new development philosophy, and where innovation becomes the primary driving force, coordination becomes an endogenous feature, greenness becomes a normal pattern, openness becomes the only road and sharing becomes the fundamental objective. More specifically, high-quality development is the change of economic development from “have or not have” to “good or bad”.

In a country like China that has a huge economy and population, it is not easy to change from a rapid growth stage to a high-quality development stage. It requires the government, enterprises, educational and scientific research institutions, consumers and all sectors of society to carry out the new development philosophy in depth, to take the initiative and make great progress. The telecom industry is a strategic, basic and pioneering industry in the national economy. It is known as the “multiplier” of economic growth, the “converter” of development mode and the “booster” of industrial upgrading. It has the responsibility and capacity to play a good role in driving and supporting high-quality development.

As a central enterprise and basic telecom operator, China Telecom performs its high-quality development responsibilities from four main aspects:

Lay the network foundation for high-quality development. The communications network is an important support to high-quality development. China Telecom has been vigorously implementing the cyber strength building strategy by building developed fundamental networks, ensuring safe and smooth network operation, and propelling intelligent network-oriented evolution, so as to lay a solid foundation for high-quality development.

Boost the high-quality development of digital economy. Digital economy is a new driving force for high-quality development. China Telecom has been promoting in-depth integration between ICT application and new industrialization, urbanization and agricultural modernization, promoting the integration between ITs and real economy, promoting the integration between ICT application and government administration and social services, facilitating the upgrading of traditional industries and the improvement of people’s livelihood, and propelling the conversion of the old and new driving forces.

Create a better life with high-quality development together. The final goal of high-quality development is to enjoy a better life. China Telecom has been serving customers wholeheartedly, facilitating growth of employees, practicing green development, making earnest efforts to social welfare undertakings, and fulfilling overseas responsibilities, striving to create and share a better life together with all parties.

Enhance vitality and capability for high-quality development. Enterprises are the main force for achieving high-quality development. China Telecom has deepened corporate reform, kept enhancing its vitality and capability, improved its efficiency and effectiveness, endeavors to play the role of a central enterprise as a pillar in high-quality development, and strives to be a competitive world-leading enterprise.

High-quality development

Lay the network foundation for high-quality development

Enhance vitality and capability for high-quality development

Create a better life with high-quality

development together

Boost the high-quality

development of digital economy

10 11

LAY TH

E NETW

OR

K

FOU

ND

ATION

FOR

HIG

H-

QU

ALITY

DEVELO

PM

ENT

China Telecom 2018 CSR Report

The communications network is an important support to high-quality development. China Telecom has been vigorously implementing the cyber strength building strategy by building developed fundamental networks, ensuring safe and smooth network operation, and propelling intelligent network-oriented evolution, so as to lay a solid foundation for high-quality development.

LAY THE NETWORK FOUNDATION FOR HIGH-QUALITY DEVELOPMENT

China Telecom endeavors to make broadband Internet wider, faster and benefit users and residents of urban and rural areas to a larger extent.

Build Developed Fundamental Networks

In 2018, we were active in implementing State Council and MIIT requirements, further raised broadband Internet access speed and reduced the tariff, which proved to benefit both businesses and the general public.

Speed Up and Fees Down

1110

Main Actions for Speed Up and Fees Down in 2018

Area Main Actions

Mobile business

· Improved the in-depth coverage of 4G network and promoted 4G upgrading in rural areas

· Put forth efforts to improve the network quality in areas with intensive traffic and voice volume, such as high-speed train, highways, colleges and universities, high-density residential areas, high-flow business areas, and subways by expanding the base station capacity dynamically per month

· Pre-commercial operation of VoLTE business

· Further reduced mobile traffic tariff, fully ended domestic roaming charges, and cut down charges on international roaming and roaming in Hong Kong, Macau and Taiwan

Wired broadband

· Improved the coverage of fiber optic broadband network in urban and rural areas, and newly built more than 34 million optical ports

· Proactively deployed gigabit fiber optic broadband network and carried out gigabit demonstration communities building in 168 cities

· Lowered the standard tariffs for commercial private line products

Build developed fundamental

networks

Ensure safe and smooth network operation

Propel intelligent network-oriented

evolution

2

31

LAY TH

E NETW

OR

K

FOU

ND

ATION

FOR

HIG

H-

QU

ALITY

DEVELO

PM

ENT

12 13

LAY TH

E NETW

OR

K

FOU

ND

ATION

FOR

HIG

H-

QU

ALITY

DEVELO

PM

ENT


In 2018, we continued promoting communications network construction in rural and remote areas, and actively expanded the application of satellite network in the fields of aviation and navigation.

Network Coverage Expansion

Xinjiang Branch completed universal service projects for 2,745 administrative villages in 2018. In Altay Prefecture, the administrative villages’ fiber optic access rate reached 100%, the mobile communications network coverage rate reached 86% and 69% respectively in the rural areas and in the pastoral area. The herdsmen had to “climb to the top of the mountains to make a call”, but now, they are not afraid of “losing contact” even when they drive their cattle and sheep to the deep mountains. Amina Kazimu lives in the herdsmen’ settlement in Qiemuerqieke Town of Altay City. The traditional Kazakh pattern carpet she made could be sold to places farther away with the help of Internet.

China Telecom tried hard to overcome difficulties of communications project construction in remote villages, and fully completed the optical cable construction task for 52,000 administrative villages in 2018, creating better communications network conditions for those in extreme poverty to get out of poverty, and contributing to village revitalization.

Boost Universal Service Development

China Telecom gives play to its advantage in satellite communications and expands communications services in navigation, aviation and special areas. In 2018, the total domestic capacity of satellite network broadband reached 300MHz, the aviation Internet consumed 120 TB of data traffic and the marine broadband consumed 4TB.

Expand Satellite Communications Services

Guangxi Branch actively participated in the bidding of universal service pilot projects and won the bid of construction task for 833 administrative villages with harsh natural environment in Wuzhou and the other 7 cities in 2018. With its careful organization, it successfully finished all construction work ahead of October 2018.

【Examples of Conquering Difficulties in Universal Service】

Capacity Expansion Actions and Results of Internet Backbone Network in 2018

Interconnected bandwidth between domestic

operators expanded by 1,230 Gbps, reaching

5,886 Gbps

Domestic interconnection

In August 2018, engineering staff were transporting communications facilities on foot in Nongbiao Village, Pingyang Township, Xingbin District, Laibin City of Guangxi Zhuang Autonomous Region

Since July 1, 2018, China Telecom has canceled domestic mobile traffic roaming charges and upgraded users’ intra-provincial traffic to domestic traffic (traffic in HK, Macao & TW not included); Picture: staff of Xinhua business outlet of Chengdu Branch in Sichuan was introducing changes of traffic roaming charge to a user

Qinghai Branch completed the universal service projects for 879 administrative villages in 2018. In Haixi Mongolian and Tibetan Autonomous Prefecture, i t was responsible for optical network construction for 62 administrative villages of Tianjun County. In Golog Tibetan Autonomous Prefecture, it was responsible for optical network construction for 60 administrative villages of Dari County and Gande County. The average local elevation surpasses 4,000 meters and snow is perennial in many places. The engineering staff exerted themselves to complete construction with limited time.

No matter how hard or how tired we are, seeing the happy smiling faces and

eyes full of expectation of the herdsmen, all are worthwhile; only when you have

experienced it, can you find out how great we have done.

——Li Shicai, Project Manager of the Branch Company of Haixi Mongolian

and Tibetan Autonomous Prefecture of Qinghai Province

Satellite communications uses artificial earth satellite as a relay station to transmit radio waves in order to achieve communications between earth stations or receiving terminals. Based on satellite communications, China Telecom provides aviation Internet, marine broadband, Tiantong satellite, cooperative satellite, satellite broadband, satellite IoT, satellite communications integration and other services, which are widely used in many areas of national economic and social life. For example:

Aviation Internet provides cockpit communications to meet the voice and low-speed data communications needs of airlines’ operation control and air traffic control, and provides cabin communications to meet the broadband Internet access needs of passengers such as web browsing, instant messaging and e-mail.

Marine broadband realizes the interconnection between marine vessels and terrestrial public communications networks or corporate private networks, meets the needs of users such as web browsing, instant messaging, e-mail receiving and sending, and voice communications, and supports applications such as video return, trajectory positioning, information release, etc.

Tiantong Satellite provides all-weather and all-time mobile communications services for users in China’s land and sea areas, and supports voice, short message and data services.

What is satellite communications? What services does CT’s satellite communications provide?Tips

Network Coverage in 2018

%Fiber-optic coverage

in cities

%Fiber-optic coverage

in townships

%Fiber-optic coverage in administrative villages

%4G coverage in urban and rural population

%4G coverage in

administrative villages

International interconnected bandwidth increased by 738 Gbps, reaching 5,640 Gbps

International interconnection

Main Results of Speed Up and Fees Down in 2018

Average access rate of wired broadband

Unit bandwidth price per month for wired broadband

Mobile data tariff

Reduction of international roaming traffic tariffs in over

60 directions

%Reduction of standard tariff for

Internet private lineReduction of standard tariff

for SMEs-oriented commercial private line

% %

57%

up by 41%

0.51yuan/Mbps

0.30yuan/Mbps

down by

67%

0.025yuan/MB

0.008yuan/MB

down by

in 2017

76.6Mbps

in 2018

121Mbps

in 2017

in 2018

in 2017

in 2018

14 15

LAY TH

E NETW

OR

K

FOU

ND

ATION

FOR

HIG

H-

QU

ALITY

DEVELO

PM

ENT


Business Main Progress

Aviation Internet· Signed contracts to provide services to Air China, China Eastern Airlines and Southern Airlines

· By the end of 2018, 140 planes had had access to the Internet, 98,000 flights and 2.99 million person-time of users received services

Marine broadband· Have been opened in 11 coastal provinces/autonomous regions/municipalities directly under the central government, and

provided services to marine fisheries, transportation, administrative enforcement and passenger cruise ships

Tiantong Satellite· More than 10,000 commercial users opened Tiantong Satellite Phone

· Provided communications guarantee for SCO Qingdao Summit, Heilongjiang Forest Fire Emergency Response, etc.

Examples of CT’s Satellite Communications Service Expansion in 2018

In the small hours of Jan. 18, 2018, CT supported China Eastern Airlines to offer communications service to passengers on 181 zero-crossing flights

In March 2018, Fujian Quanzhou Branch joined hands with Xiangzhi Township to provide marine satellite broadband service, to meet the communications needs of fishermen and seamen, and help fishermen to conduct “seafood micro business” and facilitate seafood trading

In 2018, China Telecom act ively provided T iantong satel l i te communications services in accordance with the needs of enterprises and institutions in the fields of fisheries, water conservancy and tourism.

In June, we assisted the Fishery and Fishing Administration Bureau of the Ministry of Agriculture and Rural Affairs in carrying out Tiantong Fisheries Pilot Project in coastal provinces, with 120 pilot sets installed to meet the needs of maritime calls, SMSs, short messages broadcasting, emergency calls and location information reporting, and to ensure the safety of fishery production.

In July, we assisted the Water Resources Department of Hebei Province to equip more than 1,000 small reservoirs and more than 2,500 nearby villages with Tiantong Satellite Phones to enhance their flood control command capabilities.

In Tibet, 150 base stations and more than 300 fixed satellite phones were installed in remote areas that cannot be covered by ground communications to meet the basic local communications needs. Lv Jun/Seawolf, a documentary photographer and director from Xinjiang, took four years to shoot the documentary on Mount Everest, but failed to challenge Mt. Everest twice. In June 2018, in the process of reaching the summit of Mt. Everest, he had cold symptoms. In the dilemma, he contacted experts from the Everest Base Camp with China Telecom’s E-surfing Satellite Phone. After technical guidance by telephone, his symptoms were quickly alleviated, and he recovered his strength, continued to challenge Mt. Everest, and finally succeeded in climbing the summit.

【Expand the Application of Tiantong Satellite】

China Telecom accelerated network construction in Xiong’an New Area in 2018, and joined hands with its partners to contribute to the building of digital intelligent city and to construct a new highland for the development of digital economy.

【In-depth Participation in the Building of Xiong’an New Area】

China Telecom has been implementing the deployment of the national strategy of regional coordinated development and actively supporting major construction.

Support to Major Programs

China Telecom’s E-surfing Satellite Phone gave me great help during this

successful climbing of Mt. Everest, helping me get guidance from professionals

when I needed help most.

- Lv Jun/Seawolf

China Telecom actively participated in communications facilities construction for Guangdong-Hong Kong-Macao Greater Bay Area (GBA) to improve interconnection level.

【Communications Facilities Construction for Guangdong-Hong Kong-Macao Greater Bay Area】

· Constructed communications facilities for the Hong Kong-Zhuhai-Macao Bridge (HZMB), participated in the construction of cross-border transmission optical cable system, and realized wireless coverage of HZMB and the east-west artificial islands. China Comservice Guangdong Branch participated in HZMB mobile communications design, cross-border optical cable construction, communications line change for Zhuhai connection line, supervision of the bridge’s base station project and other projects

· Improved the layout of communications network and participated in the construction of the GBA communications inward-outward gateway exchange and cross-border optical cables

· Introduced communications prepaid cards in GBA to facilitate the travel and communications of visitors in the three places

On July 4, 2018, engineering staff of China Comservice Guangdong Branch were studying cross-border optical cable laying plan on the HZMB

On April 18, 2018, China Telecom Macao signed GBA strategic cooperation agreement with CITS to promote CT GBA prepaid card

Upgraded Xiong’an New Area as a core node of national backbone network, which is interconnected with core nodes of Beijing, Shanghai and Guangzhou, and could reach more than 230 countries and regions fast

February Conducted 5G network-based driverless car tests with ZTE and Baidu in Xiong’an New Area, s ta r t ing the app l ica t ion experiment of 5G network in the field of manless driving

In order to meet the needs of technical application testing such as 5G-based driverless car-road coordination, ecological environment monitoring and smart construction site, more than 100 5G stations have been commissioned and opened to realize continuous coverage of 5G signals in three counties, key construction areas and main traffic arteries of the New Area

May

Settled at the citizen service center in the first batch. Set up Digital Xiong’an Open Laboratory and 5G Open Application Laboratory, and carried out research and development in the areas of network security, 5G, IoT, cloud computing and other fields jointly with relevant partners

December

Set up CT X iong ’an Ma jo r P ro jec t Management Office and Talent Working Station, and held China Telecom Xiong’an New Area Planning and Construction Partners Meeting

March

Xiong’an temporary data center was established. The cloud platform deployed carr ies a number of appl icat ions for the departments in the New Area, and supports the building of an intelligent city

Dispatched expert teams to participate in the design of digital Xiong’an government information infrastructure and the compilation of overall development plan for intelligent small towns with characteristics

June

Completed the ICT application construction of the Relocation Command Headquarters of the New Area and provided suppor t f o r t he work o f requisition and resettlement

January

In June 2018, Lv Jun/Seawolf used E-surfing Satellite Phone to contact experts at the Everest Base Camp during his climbing of Mt. Everest

16 17

LAY TH

E NETW

OR

K

FOU

ND

ATION

FOR

HIG

H-

QU

ALITY

DEVELO

PM

ENT


Ensure Safe and Smooth Network Operation

China Telecom complies with the laws and regulations on network information security such as the Cyber Security Law of the People’s Republic of China, conscientiously implements relevant requirements by the Ministry of Industry and Information Technology and the Ministry of Public Security (MPS) on preventing and combating communications fraud, continuously improves network information security and actively prevents and addresses various types of network and information security risks.

Safeguard Network Information Security

The intel l igent number security alert product is welcomed by users for providing rel iable identif ication of cal ls and reducing the possibil ity of communications fraud. In August 2018, it won the Gold Award of “Excellent Achievements in Innovation of Information Communications and Data Applications in China” at the 15th China Info-Port Forum. By the end of 2018, it had alerted 230 million users.

While mobile e-government brings convenience, we also need to guard against such security problems as theft of mails, leakage of information and application counterfeiting. In order to support “Internet + government services”, China Telecom has actively developed and promoted mobile phone cloud security product.

【Mobile Phone Cloud Security Safeguards E-Government】

In view of the problems of fraud and harassment encountered by users in the process of phone calls, China Telecom Best Tone Information Service Co., Ltd. actively implemented the requirements of the Ministry of Industry and Information Technology on preventing and combating bad calls of communications information fraud, and developed and promoted the intelligent number security alert product.

【Intelligent Number Security Alert】

【Combating Communications Information Fraud in accordance with Laws and Regulations】

In 2018, Guangxi Zhuang Autonomous Region Branch assisted public security departments in investigating thousands of cases of communications information fraud together with relevant units, and avoided property losses of RMB150 million for the people.

Visitors were watching the demonstration of CT “Cloud Dam” security product at Chengdu Venue during the National Cybersecurity Week on Sept. 17-23, 2018

When communications fraud occurred, and the money had been scammed, it would be too late to remedy it. China Telecom provides an effective guarantee to help

us prevent communications fraud.

-Li Xiaoqi, a user from Huamu Street of Pudong New Area of Shanghai

Main Actions in Safeguarding Network Information Security in 2018

Area Main Measures Results

Organization and institution building

· Established a normalized discussion and working mechanism for the Group’s steering group on network information security to deploy and carry forward main work

· Further enhanced the network information security working mechanism

Capacity building· Developed technical means to deal with network information

security risks and address network security loopholes in time

· Developed plans for public Internet network security emergencies

· The number of CT’s network security loopholes reported by MIIT reduced by 60%

Hidden danger prevention and active service

· Established an anti-fraud information security prevention and control system and governed malicious applications of fraud

· Implemented IoT card real-name system and other measures to prevent communications information fraud, and strengthened the mechanism of accountability and punishment

· Carried out Cybersecurity Week campaign in business outlets and promoted communication and interactive activities through new media on communications information fraud prevention

· Disposed more than 12,000 phising sites

· The quantity of numbers reported through 12321 was down by 36% and the quantity of numbers involved in cases reported by MPS was down by 90%

· Blocked the spread of malicious apps for over 77 million times and protected over 2.2 million users from being encroached

Major event guarantee and support

· Provided support for major protection targets· Successfully completed network information

security tasks for the First China International Import Expo and other events

Intelligent number security alert product is based on the anti-fraud database, providing users with security alert service of caller number. The anti-fraud database includes the own data of China Telecom Best Tone Information Service Company, and related data of Internet companies such as 360 and Tencent.

If users use the intelligent number security alert product, when they receive suspected fraud or harassment calls, their phones will receive a real-time “flash SMS” alert, informing them that the caller number has been marked as a suspected bad or high-frequency marketing number. “Flash SMS” can automatically achieve “burn after reading”. Users do not need to regularly clean up mobile phone messages, do not need to install a client, and do not need to connect to the Internet.

What does Intelligent Number do?

Tips

The mobile phone cloud security product is based on a business platform that meets the requirements of the third level standards of information system security grade protection system. Combined with Internet and mobile security technologies, it provides customers with functions of E-surfing U-shield security identity authentication, secure data channel, mobile devices and application management, so as to realize all-round security protection services covering cloud, management, end and core.

In particular, the E-surfing U-shield security identity authentication takes China Telecom SIM card as its carrier, and provides hardware-level security identity authentication capability and digital signature authentication function, which can identify the identity and authority, as well as conduct operations and certificates of users to ensure the traceability of operations. As the SIM card replaces the traditional U stick, the security authentication method is upgraded, bringing users better use experience.

What is Mobile Phone Cloud Security?Tips

By the end of 2018, the mobile phone cloud security product had been promoted to 127 units with 28,000 users. In Zhuhai City, Guangdong Province, 95% of the departments/units of the municipal Party committee and government had opened and used this business, to cooperate with the local e-government network, effectively ensuring the security of mobile office.

Shenzhen Branch of Guangdong Province took advantage of big data to provide users with malicious website warning and anti-fraud big data analysis for the public security network supervision department. Since the pilot project in Longgang District in January 2018, 620,000 broadband users have been offered free network anti-fraud services. The success rate of reminding reached 92%, and more than RMB8 million of economic losses have been recovered for users.

On March 23, 2018, Ningxia Hui Autonomous Region Branch cooperated with local public security departments to carry out propaganda activities on preventing communications fraud, publicized relevant laws and regulations on the spot in Yinchuan Railway Station and other places, as well as explained the real-name registration system, harassment and fraudulent short messages interception and other knowledge on communications information fraud prevention, in order to help the masses improve their awareness and ability of preventing fraud. The Branch also set up a “mobile phone security protection volunteer service desk”, to explain and publicize mobile phone and computer virus prevention knowledge, and provide convenient services such as mobile phone security software installation for the masses.

18 19

LAY TH

E NETW

OR

K

FOU

ND

ATION

FOR

HIG

H-

QU

ALITY

DEVELO

PM

ENT


China Telecom has faithfully fulfilled its mission of ensuring safe and unimpeded communications. In 2018, we successfully completed the tasks of disaster relief and emergency communications guarantee, such as those caused by the mudslides in Gansu and Sichuan, typhoon Mangkhut and Ampil, Mojiang earthquake in Yunnan, and landslides along the Jinsha River and the Yarlung Zangbo River. We also successfully completed the communications guarantee tasks for events including the SCO Summit in Qingdao, the Beijing Summit of the Forum on China-Africa Cooperation, the first China International Import Expo, the Boao Forum for Asia, the World Internet Conference and the First Digital China Summit.

Full Support to Emergency Communications

On June 1, 2018, a lightning fire broke out in Hanma National Nature Reserve of the Great Khingan Mountains Forest Region. Emergency rescue team members of Hulunbuir League Branch of Inner Mongolia Autonomous Region rushed to the scene to implement emergency communications guarantee. The team members slept in the open air and worked hard for more than 200 hours continuously to fully support fire fighting and disaster relief.

From November 5 to 10, 2018, the First China International Import Expo (CIIE) was held in Shanghai. China Telecom provided top-level communications guarantee services for the conference with “gigabytes to desktops in News Center, 10-gigabytes interconnection in national pavilions, and 5G priority experience for smart Expo”.

【Guarantee for the First China International Import Expo】

On October 11, 2018, a landslide broke out at the junction of Baiyu County in Sichuan Province and Jomda County in Tibet Autonomous Region. The landslide truncated the main stream of Jinsha River and formed a barrier lake, endangering the downstream regions: eight townships in Jomda, Gongjo and Markam counties of Changdu City, Tibet Autonomous Region, as well as Baiyu, Batang and Derong counties in Ganzi Prefecture, Sichuan Province. Disaster situation is an order. Sichuan Ganzi Tibetan Autonomous Prefecture Branch quickly dispatched 146 rescue personnel, 43 emergency rescue vehicles, and 3 emergency communications satellite base station vehicles to provide communications services for the rescue and relief areas 24 hours uninterrupted. At the same time, free satellite phones were offered to meet the needs of communications in disaster areas, and to ensure the communications services in disaster victims’ settlements.

On September 16, 2018, the super typhoon Mangkhut landed in Haiyan Town, Taishan City, Guangdong Province. The maximum wind power near the center reached the 14 level, causing nearly 3 million people in five provinces/autonomous regions including Guangdong, Guangxi, Hainan, Hunan and Guizhou to suffer from disasters, and the communications services in the disaster areas were severely disrupted. China Telecom related enterprises organized emergency rescue and disaster relief as soon as possible. In Guangxi, 5,995 people, 1,701 guarantee vehicles and 2,667 generators were dispatched; and 9.25 million pieces of public welfare early-warning messages were sent. Xi’an Mobile Communications Bureau in Shaanxi Province provided more than 290 emergency Tiantong Satellite Phones for the Party, government and army customers in the disaster-stricken areas of Guangdong Province in the first time to ensure local key communications.

【Disaster Rescue and Relief】

On September 16, 2019, after receiving the rescue and relief work, the satellite communications department of Xi’an Mobile Communications Bureau developed an emergency guarantee plan immediately, and provided 7*24 support services to Tiantong phones assuming emergency guarantee tasks

On October 12, 2018, the rescue team of Ganzi Tibetan Autonomous Prefecture Branch of Sichuan Province accompanied the hydrological expert team to the first line of the collapsed body of the barrier lake in Baiyu County, and provided communications guarantee for the expert team

Guarantee Areas Projects Main Effects

Core venues

· Newly constructed wired broadband, 4G and WiFi networks for the main meeting room of the opening ceremony and rooms of parallel forums

· Upgraded and expanded the network of the National Exhibition and Convention Center (NECC)

· Built 5G demonstration network at the NECC and Hongqiao business district

· Greatly improved the 4G network capability of the NECC, which can guarantee 300,000 people to access the Internet at the same time, with an average download rate of 70Mbps

· The National Pavilion can guarantee 3,000 computers to access the Internet at high speed at the same time

Key places· Upgraded the networks of the Conference News Center, Public Security

Certification Center and hotels where guests stayed

Surrounding areas· Expanded and optimized the networks of the airport, the high-speed train,

the subway and the expressway

Network Guarantee Projects of China Telecom for the First CIIE

During the meeting, Shanghai Branch formulated 93 guarantee schemes for various business scenarios and users’ needs, and dispatched more than 1,200 safeguard personnel for on-site guarantee. The Group Company started the regional coordination mechanism and deployed network security experts to strengthen support on site.

On October 17, 2018, part of the members of China Telecom providing support and guarantee for the First China International Import Expo

Overview of Emergency Communications in 2018

Repair engineers dispatched for rescue and relief work

Guarantee personnel for events Guarantee vehicles for events

Vehicles dispatched for rescue and relief work

Emergency communications devices dispatched for rescue and relief work

Emergency public messages sent for rescue and relief work

+ person-time

+ unit-time

+unit-time

+ person-time

+ unit-timemillion+ pieces

20 21

LAY TH

E NETW

OR

K

FOU

ND

ATION

FOR

HIG

H-

QU

ALITY

DEVELO

PM

ENT


In 2018, Chongqing Branch started the pilot work of intelligent private line, providing multi-purpose, bandwidth-optional products for small and medium-sized enterprises. Based on the new SDN/NFV network architecture, the product realizes cloud network integration and service overlay, and facilitates customers to quickly open bandwidth through the intelligent private line system, adjust it on demand, and enjoy intelligent network services. By the end of 2018, nearly 400 optional network customers had been developed.

In 2018, China Telecom vigorously promoted cloud network integration, and strived to provide customers with digital ICT services with cloud network integration as the core. We won the Trusted Cloud Government Cloud Award awarded by China Academy of Information and Communications Technology, and the cloud-network-connection product won the Trusted Cloud Technology Innovation Award.

Area Action & Progress Significance

Evolution of cloud network integration

· Accelerated the construction of IDC and cloud resource pool; IDC racks reached 330,000 and export bandwidth reached 370Tbps

· Connected the E Cloud resource pool with the bearer network; some IDCs are directly connected to the backbone network; and 60 cloud resource pools in 31 provinces/autonomous regions/municipalities directly under the central government are connected to the data center high-speed interconnected network

· Pilot deployment of network choreographer system “SDN Hub”, with heterogeneous SDN unified access, management and scheduling capabilities

· Improved E Cloud standard

· Cloud resource scale and bandwidth continue to lead in China

· Support the rapid development of E Cloud

· Preliminary realization of network following cloud

Product R&D and promotion

· Set up a cloud-based product system with cloud network integration as the core and promoted upgrading of 10 cloud-based products

· Promoted the development and deployment of cloud network integration products as a whole; provided high-quality networking and cloud network hosting services such as industry private network, high-quality private line, cloud private line and cloud private network to government and enterprise customers; and provided SMEs with one-line networking, cloud-surfing, networking and application-on-demand services with intelligent private line as the core

· The product capability with cloud network integration as the core has taken the initial shape

Overview of Cloud Network Integration Progress in 2018

On May 2, 2018, the SDN gateway product launched by Shanghai Branch began to release numbers. All new users with access bandwidth of 100 Mbps and above could use it. At the same time, the old users were provided with the choice of broadband speed upgrading to gigabit. By the end of 2018, 700,000 users had used SDN home gateways.

【Provide Intelligent Network Products to Customers】

China Telecom has strengthened R&D for key technologies and applications in fields such as 5G, next-generation Internet, cloud computing, big data, IoT and AI, actively participated in major national science and technology special projects, key research and development plans and other national science and technology plans and programs, and steadily promoted the intelligent evolution of the network.

Propel Intelligent Network-Oriented Evolution

Area Action & Progress Significance

Fundamental research

· Updated NFV specifications

· Conducted tests of vIMS (virtualized IP multi-media system) full decoupling in laboratory and in the existing network

· Made plans for CORD (Central Office Re-architected as a Data Center) and IDC

· Completed the independent R&D of part of the modules of the new-generation operation system

· Make technology and computer room resource reserve for cloud deployment of 5G core network

· Independent R&D capability improves

Deployment in existing infrastructure

· Launched a three-tier decoupled fixed network vIMS deployment in Shanghai

· Realized the traffic scheduling for provincial nodes, international networks, interconnection points, backbone networks-IDC, 163 old and new planes

· Achieved low-latency routing for more than 800 devices in the whole network

· Further software development of the network, and the agility has been improved to a certain extent

· Delay of the virtual private network between Hangzhou and Xi’an and the European nodes of China Telecom’s interconnected network is reduced by 30%

Product development

· Pre-commercial service of SDN intelligent private line in Chongqing and other 4 provinces

· Commercial service of SDN home gateway in Shanghai

· Released inter-cloud high-speed network products

· Customer-oriented on-demand network capabilities further improved

Overview of Progress in Intelligent Network Evolution in 2018

In 2018, China Telecom continued to promote the test and deployment of software defined network (SDN), network function virtualization (NFV) and other technologies to improve network’s intelligent capability.

Improve Network’s Intelligent Capability

Using software to manage the home network is very convenient. With the one-click diagnosis function, we can directly see what have been set up, and the

acceleration function is suitable for gamers.

-Message left by Jesse1988 (net name), a user of SDN gateway product from Shanghai

“Shuige Feiteng” (meaning tax pigeon flying) is a state-level high-tech enterprise cultivated by the Yangtze Delta Region Institute of Tsinghua University, Zhejiang. With its big data private cloud platform Xi block chain technology of “Internet + IoT + intelligent terminal”, it has developed a series of electronic tax products to meet the needs of the government in decentralization and reform of the commercial system.

In cooperation with China Telecom, Shuige Feiteng achieved perfect docking with tax service, industry and commerce bureau and other systems through the integrated, safe and trusted cloud network integration plan of “E Cloud + cloud private line” and “ticketing system + smart terminal”. We have solved the signature problem of electronic invoices, eliminated security concerns in the process of sensitive information transmission, provide users with a complete e-tax solution, and jointly contribute to the service of “going at most once".

Thanks to the flexible expansion and fast opening features of E Cloud service, the cumulative cost of hardware and operation and maintenance of Shuige Feiteng has been reduced by more than 65%, and the rollout time of the customer system has been shortened by more than half. It also ensures that the data will not be disclosed and cashed in.

【Cloud Network Integration Assists E-Tax】

At present, the cloud platform is generally stable and reliable. Thank China Telecom for its service and support.

-Zhu Caigao, Engineering Technology Director of Zhejiang Hangzhou Shuige Feiteng Information Technology Co., Ltd.

22 23

LAY TH

E NETW

OR

K

FOU

ND

ATION

FOR

HIG

H-

QU

ALITY

DEVELO

PM

ENT


On December 5, 2018, journalists were experiencing 5G applications on a BRT bus on the 2nd Ring of Chengdu

In 2018, the Company implemented the requirements of the state on advancing the fifth generation mobile communications (5G) and actively carried out 5G technology experiments and commercial preparations.

Advance 5G

In Chongqing, the first 5G base station was opened in August, and enabled 4K UHD VR application on site of Smart China Expo 2018 through 5G network and client terminals.

In Xiong’an New Area of Hebei Province, end-to-end call based on 5G independent networking standard was opened in September.

In Hangzhou, Zhejiang Province, 5G network-based marathon video live broadcast was realized in November.

In Guangdong Province, 5G experimental networks had been set up successively in Guangzhou and Shenzhen. Innovative application scenarios such as “5G + cloud AR (augmented reality)” maintenance, 360 degree panoramic live broadcasting, online 4K video, and remote driving were launched. 5G network environment-based business demonstration was held at Intelligent Ecological Expo in Pazhou of Guangzhou in September. The police application of 5G three-dimensional patrol intelligent law enforcement was realized in Shenzhen in November.

In 2018, China Telecom actively carried out 5G construction and application demonstration project in accordance with the reply of National Development and Reform Commission, and realized a series of 5G innovative applications.

In Chengdu, Sichuan Province, a small-scale of multi-base station 5G test network was opened in June. In December, we joined hands with Chengdu Public Transport Group Co., Ltd. to build the first 5G bus loop with independent networking on the 28km-long 2nd Ring Elevated Road, realizing smooth video connection, VR (virtual reality) and other 5G applications.

【Conduct 5G Network Experiments】

Our demonstration of 5G applications shows the determination of China

Telecom in connecting the industrial upstream and downstream and making

innovation for development.

-Xiao Hong, from Product Development Center of China Telecom

Guangdong Branch

Timeline of Advancing 5G in 2018

September February

December

Realized the application of high-speed WDM-PON network carrying 5G fronthaul in the existing network for the first t ime, wh ich promotes the maturity of 5G bearer network

The National Development and Reform Commission approved China Telecom to carry out 5G scale construction and application demonstration projects in Beijing and other c i t ies. The 5G pi lot deployment has entered a new stage

Successfully built the self-controlled open platform-based 5G model network for the first time and made the first call based on SA (standalone network), marking that 5G independent networking has entered the stage of product landing

Results of 5G R&D

June

P u b l i s h e d “ C h i n a Te l e c o m 5 G Techno logy Whi te Paper” , wh ich comprehensively explains 5G technology viewpoints and overall strategies, and promotes 5G cooperation and industrial ecosystem circle development

November

Completed the verification of interoperability between 4G and 5G networks that were independently networked, and promoted the maturity of the collaboration plan for 4G/5G networks

Number of 5G international standardization projects and work

conducted

Number of contributions submitted on 5G international

standard

Number of 5G invention patents applied for

Newly increased in 2018 Total number by the end of 2018

Number of the national science and technology major special

topics on 5G assumed

24 25

BO

OST TH

E HIG

H-Q

UALITY

DEVELO

PMEN

T OF D

IGITAL

ECO

NO

MY


Digital economy is a new driving force for high-quality development. China Telecom has been promoting in-depth integration between ICT application and new industrialization, urbanization and agricultural modernization, promoting the integration between ITs and real economy, promoting the integration between ICT application and government administration and social services, facilitating the upgrading of traditional industries and the improvement of people’s livelihood, and propelling the conversion of the old and new driving forces.

2524

China Telecom enhanced communication with different industries and sectors, and carried out multi-dimensional, multi-level and multi-form cooperation to jointly drive the development of digital economy and consumption upgrading.

Cooperation for Digital Economy Development

2

31

Examples of Cooperation for Digital Economy Development in 2018

China Telecom Best Tone Information Service Co., Ltd. and China National Household Electronic Appliance Service & Maintenance Association jointly launched “Service Industry Public Telephone Service Platform 118114” to provide users with high-quality household electronic appliance service choices and promote the transformation and upgrading of the industry

Published the “White Paper on AI Terminals”, and launched several inte l l igent terminals with manufacturers to promote the AI-oriented upgrading of all-mode-supported terminals

Issued standard specifications for smart service hall, and the first smart service hall - Guangzhou Machang Hall opened after upgrade and renovation. We joined hands with business partners to explore and practice the transformation of new retail

BestPay Co., Ltd. and S h a n g h a i J i a o t o n g U n i v e r s i t y s e t u p a joint laboratory, which combines the AI algorithm research with the demand of risk control in financial business to improve the smart finance service level

Establ ished the “Highway Network Operation Monitoring and Innovation Application Research Laboratory” together with the Highway Monitoring & Response Center of the Ministry of Transport, and carried out cooperation in expressway video cloud, transport big data and intelligent expressway, so as to promote the IT-based development of transport

Best Tone Holding Co., Ltd. and its employees established a start-up company - Weifen Sports with joint investment, which operates E-sports clubs and other businesses, and develops digital sports services in the mode of “mass entrepreneurship and innovation”

Published the Smart Campus Integrated Management P la t form together w i th Tsinghua University and other universities to promote the application of IoT technology in the field of campus ICT application and facilitate the construction of smart campuses

Estab l ished T iany i Zh i l ian Sc i ence and Techno logy Co., Ltd. (and China Telecom Intelligent Logistics Application Capability Center) jointly with Transfar Zhilian Co., Ltd. – a subsidiary of Transfar Group to expand the application of intelligent logistics

BOOST THE HIGH-QUALITY DEVELOPMENT OF DIGITAL ECONOMY

Cooperation for digital economy

development

Facilitate the upgrading of traditional industries

Assist the improvement of

people's livelihood

NovemberOctoberMarch SeptemberMay

BO

OST TH

E HIG

H-Q

UALITY

DEVELO

PMEN

T OF D

IGITAL

ECO

NO

MY

26 27

BO

OST TH

E HIG

H-Q

UALITY

DEVELO

PMEN

T OF D

IGITAL

ECO

NO

MY


China Telecom deeply understands the real needs of different industries and sectors for high-quality development and gives play to its advantage in ICT application to facilitate industrial transformation and upgrading.

Facilitate the Upgrading of Traditional Industries

China Telecom provides support to corporate ICT application on a case-by-case basis and helps industrial enterprises to promote digital, network-based and intelligent manufacturing.

Intelligent Manufacturing

China Telecom promoted ICT applications based on local conditions to boost modern agriculture, the integration of primary, secondary and tertiary industries, rural ecological civilization and improvement of farmers’ lives, as well as rural revitalization.

Smart Agriculture

China Telecom provides us with a unified cloud platform and a unified

network, meets our needs for rapid rollout of new business, significantly reduces

maintenance costs, and lays the foundation for our next step in IT upgrading.

-Chen Ling, Director of the IT Department, CATLThe after-sales service is very good. Within 2 minutes of submitting the work

order, there will be telephone checks and arrangements to deal with the problem.

-Wang Shuguang, Technical Director of Maidi Information and Technology

Co., Ltd. in Hangzhou, Zhejiang

www.maidiyun.com is a professional functional e-commerce platform built by Maidi Information and Technology Co., Ltd. in Hangzhou. It is oriented to equipment manufacturing industry and provides integrated services of industrial product design, R&D, purchase, sales and processing and manufacturing.

Zhejiang Branch took the initiative to recommend the “safe and trusted” and “private service” advantages of E Cloud, and provided the main business platform of www.maidiyun.com with high-level computer room, high-performance cloud hosting, stable network resources, and CDN (Content Distribution Network) cloud acceleration products, to assist it building a safe and stable industrial internet platform and enable multi-operator access. In January 2018, Maidi Cloud won the honor as one of the six “Excellent Industrial Cloud Platforms” in Zhejiang Province. By the end of 2018, www.maidiyun.com had had 38,000 above registered users nationwide, displaying and offering hundreds of thousands of types of machinery parts and 3-D design samples.

【Maidi Cloud】【CATL New-Energy IoT-Cloud Integrated Platform】

CATL is a famous power battery manufacturer. With business development, its data volume and maintenance cost were increasing, which put forward higher requirements towards data collection, operation and management. It was urgent to establish a data collection and analysis platform for IoT, to make data access easier, strengthen big data analysis capabi l i ty and ensure the safety of data and information.

In April 2018, Fujian Branch established an E Cloud-based IoT data collection and analysis platform for CATL. It connects local data center via E Cloud private line, realizes rapid processing and analysis of battery data, and facilitates lithium battery development and production efficiency improvement. At the same time, it reinforces links’ safety by using E Cloud Fortress Machine to ensure “zero leakage” of data.

Examples of Results in Assisting Smart Agriculture in 2018

The number of “Agro-ICT Cooperatives” reached 83,000, covering 534 counties/districts in 18 provinces/autonomous regions/municipalities directly under the central government with more than 9 million registered households

【Boost Mass Entrepreneurship and Innovation】

Fujian Branch helped the government of Yanping District of Nanping City to promote the application of smart agriculture and changed the way of agricultural planting. In the Xintiandi flowers and trees cooperative, the valuable lily varieties planted in greenhouses are sensitive to the surrounding environment. After the pilot project of smart agriculture platform, through installing global eye video surveillance system, IoT data collector, sensor and other equipment in greenhouses, flower growers can set and monitor the growth environment data of lilies on mobile phones, and make remote and precise monitoring, which effectively solves the problems that lilies are sensitive to the surrounding planting environment and its environment is uncontrollable. At present, more than 170 agricultural enterprises in the whole district have access to the platform. Agricultural departments can collect and analyze agricultural information regularly and quantitatively, understand the overall situation of agricultural production and carry out remote monitoring.

【From Experience-based Farming to Data-based Farming】

In April 2018, flower grower of the cooperative Huang Dongwen (the first one on the right) was introducing the results of smart agriculture application to the journalist

Video pictures of the whole lily greenhouse can be seen on the mobile phone,

and data such as soil moisture, light intensity and leaf temperature can be observed

in real time. In the past, we did the farming work based on experience, now

we just need to sit at home and look at the data, without having to run into the

ground regularly.

-Huang Dongwen, a flower grower of the Xintiandi flowers and trees

cooperative in Yanping District, Nanping City, Fujian Province

Hunan Branch uses online and offline “integrated service platform of rural ICT application + village service station” to help local improve the level of agricultural and rural ICT application level. Among them, Huinong Baishitong integrated service platform has five functions, including smart control, real-time monitoring of production process, agricultural technology services, product traceability and automatic monitoring and control of diseases and insect pests. It can make villagers enjoy information services conveniently through mobile app, portal website and iTV. There are many big farmers of farming and vegetable growing along Xinhe River in Heshan District of Yiyang City. Yang Liming is a famous “vegetable king” far and near. Previously, he grew vegetables mainly by his hands and feet. Now, his planting base has installed sensors, cameras and other facilities. His mobile phone has installed a client of Huinong Baishitong. Video surveillance on his mobile phone shows the growth of pepper, eggplant and other vegetables at a glance.

Through the video surveillance on mobile phone, we even can see the insects on leaves clearly; sensors installed in the field collect real-time information about crop

growth, when to water and when to prevent pests, are more scientific and accurate than before.

-Yang Liming, from Yinqiao organic vegetables planting cooperative in Heshan District, Yiyang City, Hunan Province

The “Agro-Tech APP” was adopted in 1,804 counties/districts in 31 provinces/autonomous regions/municipalities directly under the central government, serving 11.8 million farmers

In August 2018, China Telecom set up a smart capability platform for mass entrepreneurship and innovation, providing public services to seven mass entrepreneurship and innovation bases under the Group, realizing capability replication, capability sharing, data sharing and data aggregation between the Group platform and local platforms, and providing information and services such as mass entrepreneurship and innovation information, online training, investment and financing for SMEs. By the end of 2018, the platform had had 4,435 SME users.

Home page and information consultation module of China Telecom’s smart capability platform for mass entrepreneurship and innovation

On September 14, 2018, sponsored by the School Department of the Central Committee of the Communist Youth League and the Secretariat of the All-China Students’ Federation, and organized by China Telecom, the theme competition of “Smart Campus” under the China College Students’ Entrepreneurship Competition in 2018 was launched. The winning teams would enjoy incentive policies such as CT’s green channel for employment, the support of venture funds, the support of resource channels and the incubation by China Telecom’s mass entrepreneurship and innovation base. At the same time, China Telecom issued the “National Innovation and Entrepreneurship Support Plan for College Students”, investing RMB1 billion to support college students’ innovation and entrepreneurship within three years. In addition, the Company would cooperate with investment institutions, universities and scientific research institutions, to build a “cloud entrepreneurship alliance”, which would open relevant resources to college students, help enhance the ability of “cloud entrepreneurship”, and assist the formation of a widely covered and highly participated “cloud entrepreneurship” momentum, so as to promote the building of smart campuses and digital China.

28 29

BO

OST TH

E HIG

H-Q

UALITY

DEVELO

PMEN

T OF D

IGITAL

ECO

NO

MY


Jinmailang Foods Co., Ltd. is a large modern integrated food company specializing in producing and selling instant foods. With the expansion of the company’s noodles and drinks product lines, the efficiency of transportation and warehouse operations had become a “bottleneck”. It was urgent to solve the problem of mismatch between business expansion and supply chain management by means of information technology. In 2018, Hebei Branch assisted Jinmailang in building a collaborative management platform for supply chain logistics operations, which realizes the visualized management of the whole supply chain process and the unified control of logistics providers and warehousing distribution. It serves warehouse logistics, production, manufacturing and sales management at all levels through WEB, APP, self-service terminals, guiding screens and other means. It achieves production and marketing operation coordination, inventory optimization management and transportation scheduling optimization through big data intelligent analysis, and improves operation efficiency in an all-round way. In addition, the platform also provides full-coverage, assessable and evaluable logistics and transportation services to help Jinmailang select carriers and optimize the supply chain in a timely manner.

【Jinmailang Smart Logistics】

The system helps our company achieve unified vehicle registration, unified

dispatch and self-picking up booking, as well as unified warehouse stocking up in

logistics operations, and promotes the efficiency of the whole plant to increase by

more than 40%.

-Li Jianfeng, Logistics Director of Jinmailang Foods Co., Ltd.

China Telecom actively provides information applications such as Internet of Things and Internet of Vehicles by taking into account the ICT application needs of the transport and logistics industry, so as to help realize smart transport and logistics.

Smart Transport and Logistics

Zotye Automobile Co., Ltd. is a well-known enterprise with the core business of vehicle R&D, manufacturing and sales. In recent years, it has actively deployed and established new energy product lines and developed connected vehicles service. In 2018, Zhejiang Branch provided Zotye with high-quality 4G service and assisted the company in building IoT card and cloud computing platform, designing new energy vehicle intelligent network service scheme, establishing global device connection platform (DCP), telematics service provider (TSP) platform and new energy monitoring platform. It also provided extended application services, such as new energy vehicle charging pile monitoring, online-car hailing supervision, and vehicle periodic leasing, to help offer more intelligent, individualized and safer connected vehicle services.

From September to the end of 2018, more than 10,000 Zotye new energy vehicles became connected vehicles. China Telecom successfully supported Zotye to achieve vehicle safety monitoring, and provided car owners with novel driving services such as entertainment information, travel services, and vehicle management.

【Zotye Connected Vehicles】

Hope China Telecom and Zotye could make closer cooperation. The

two parties will join hands to make innovation in 5G automatic driving, edge

computing for 5G connected vehicles and cloud data center construction, so as to

provide solutions to future travel together.

-Jin Zheyong, President of Zotye Automobile Co., Ltd.

China Telecom gave play to its advantage of “communications + payment + financial technology”, and cooperated with banks, brokers, insurance companies, e-commerce companies and retail companies to promote BestPay and Orange Finance products, to drive smart finance to cover more areas related with people’s livelihood, and to benefit both urban and rural residents.

Smart Finance

【BestPay Makes Daily Life Easier】

In 2018, China Telecom further promoted BestPay in supermarkets, express delivery, farmers’ markets and other consumption scenarios to make payment easier and more convenient for residents.

In Jiangsu, BestPay was increasingly popular in universities, gas stations, malls and supermarkets, and began to be used in bakeries and cinemas.

During the Spring Festival of 2018, residents were using BestPay in a bakery of Nantong City

I don’t need to go out to the express delivery station. The courier

taught me how to pay by BestPay when he collected the package. It’s

convenient and economical.

-Kang Xiaoqun, a user from No. 51 Qianban Road, Licheng District,

Quanzhou City, Fujian

As an Internet financial platform company, BestPay Co., Ltd. sticks to compliance operation and technology empowerment, and uses financial technologies to improve the security of Orange Finance by means of automatic real-name authentication, big-data-based intelligent risk control and Linghou integrated security service to enable consumers enjoy convenient payment based on safety.

【Technology Makes Orange Finance Safer】

Intelligent holographic picture of Orange Finance data that achieves intelligent risk control

Major Achievements of BestPay in 2018

Utility bill payment covered

Supermarkets and gas stations covered

cities

Personal account transaction volume reached

Car-riding code application covered

cities

billion yuan

Consumer finance covered

Merchant users reached

cities

In 2018, China Telecom cooperated with the National Animal Husbandry Station and added a new function module of “Pastoral Intelligence” on “Agro-Tech APP” to collect real-time and accurate animal husbandry information, to help farmers obtain market situations and national policies accurately, and to provide farmers with professional animal husbandry technology, methods and experience videos, which effectively solved the “last kilometer” problem of information access by farmers in animal husbandry, helps farmers to improve their breeding level and skills, and helps the competent animal husbandry departments to improve their management level and service efficiency. By the end of 2018, “Pastoral Intelligence” has been extended to 25 provinces/autonomous regions/municipalities directly under the central government, with 220,000 users and 51,000 news and video browsing.

In 2018, China Telecom further promoted the NB-IoT-based application of “Shepherd Boy”, which had covered more than 180 pastures in 51 cities of Inner Mongolia, Hebei, Shandong, Xinjiang, Ningxia, Shaanxi, Sichuan and Guizhou provinces/autonomous regions, and provided monitoring and management services for 25,000 cattle. In November 2018, it won the “Excellent Organization Award” and “Excellent Design Award” at the National Farmers Entrepreneurship and Innovation Expo. Shandong Dongying Tianchi Animal Husbandry Co., Ltd. tried out 20 sets of “Shepherd Boy” in early 2018, and the cows’ oestrus exposure rate and fertility rate increased significantly, which promoted the company’s income. The breeders’ working methods also changed dramatically. Before, they used to make 24-hour patrol, and now just use smart phones, tablets and other terminals to log in and check the monitoring data of cows at any time. The labor intensity has been greatly reduced and work efficiency has been significantly improved. In June 2018, the company decided to expand the use and bought 800 sets of “Shepherd Boy” equipment at one time.

【Smart Livestock Raising】

In Shaanxi, BestPay was used in Xiangjiazhuang Farmers’ Market in Baoji City and the Vegetable Market of Minsheng Road of Xianyang City. Residents bought agricultural and sideline food just by scanning the QR code.

In Quanzhou City, Fujian Province, Licheng Branch cooperated with local logistics and express delivery companies on using BestPay for mailing service. The courier showed the BestPay exclusive QR code when collected the package, and the sender could complete the mail just by sweeping the code. It not only facilitated users, but also helped the express delivery company to enhance its service perception.

On November 5, 2018, Mr. Yang with mobile phone number of 13577****** saw a notice on applying for loans at some social platform (which was sent by the criminal). He submitted his ID card and bank card information according to the criminal’s requirements. When the criminal obtained the private information, he bound Mr. Yang’s bank card for consumption with the BestPay account he newly registered. The Orange Finance risk control system detected this abnormal transaction and intercepted it in real time, recovering all the lost of RMB1,500 for Mr. Yang.

I thought it must be difficult to recover the money. I was really touched by

BestPay’s powerful risk control ability and excellent service attitude.

-Mr. Yang, from Gulou District, Fuzhou City, Fujian Province

million million

30 31

BO

OST TH

E HIG

H-Q

UALITY

DEVELO

PMEN

T OF D

IGITAL

ECO

NO

MY


Assist the Improvement of People’s Livelihood

China Telecom provides support to governments in deepening “Internet + government services”. We have built e-government facilities for data sharing and exchanging, to promote interconnection and coordinated governance, and improve the management of government services. We have established integrated online government service platforms to provide enterprises and residents with government services that could be handled via one website, or be processed at one desk, and citizens just need to go to the office hall for once at the most.

Smart Government

【“Internet + Government Services”】

Zhejiang Wenzhou Branch helped the local government in facility construction for the overseas upgraded version of “going to the office hall for once at the most” reform of government services. Relying on the “Internet +” trusted identity authentication technology, it has launched cross-

On June 14, 2018, the public security and notary departments of Wenzhou City connected Johannesburg of South Africa to provide police-overseas Chinese service

The opening of overseas windows has great significance. It reflects the deepening of the people-first-oriented reform of “going to the office hall for once at the

most”, from serving domestic people to serving overseas Chinese, bringing convenience to them.

-Che Jun, Secretary of CPC Zhejiang Provincial Committee and Chairman of the Standing Committee of Provincial People’s Congress

Jiangxi Shangrao Branch helped the local government in building a cloud platform of “Internet + government services” for community grid service management. Residents can consult online through the Shangrao Public APP, enjoy services without leaving their homes, and achieve “running for once” for administrative approval. By the end of 2018, more than 6,400 questions and appeals were received from the public through the APP, and more than 6,300 matters were transferred and settled, with a settlement rate of over 98%.

On October 5, 2018, staff of Community Grid Service Management and Commanding Center of Xinzhou Distric of Shangrao City were handling grid information

On December 12, 2018, students of the Hanzhuang Town Central School of Longyang District, Baoshan City, Yunnan Province were sharing the same math class with the Grade 3 students of 7 village primary schools via the Simultaneous Class

After the use of the cloud platform, residents can report problems whenever

and wherever they find them, and community workers and relevant departments

can handle them in time. The working efficiency has improved greatly.

-Liu Beifen, grid service worker of Tianjinqiao Community, Xishi Street,

Xinzhou District, Shangrao City, Jiangxi Province

The cloud platform of Jiangxi Branch supports the large-scale application of provincial public service platform and the construction of regional special education resources. There were more than 1,200 students in Lingxi Town Central Primary School of Xinzhou District, Shangrao City. There were also more than 1,000 students in the village elementary schools and teaching centers under the jurisdiction of the town. The village elementary schools and teaching centers were short of “small subject” teachers such as English, music and fine arts all the year round. Now, with the help of educational cloud platform, “special delivery classes” are opened online. The children in the villages have the opportunity to share the same class as their peers in the town, in the county, and even in the urban area. Teachers are also able to carry out cross-school teaching research and lesson preparation conveniently through the education cloud, fully drawing lessons from famous teachers’ courseware, cases and teaching design to improve their teaching level.

There are more than 1,600 schools in the Southwest Guizhou Autonomous Prefecture. The development of urban and rural education is uneven. Since 2015, Southwest Guizhou Branch has been helping the local explore the “Internet + Education” mode of “Cloud + Network + End + User”. By December 2018, 1,007 schools in the prefecture had been built into optical network campuses and opened more than 17,000 classes of “Internet + Education”, which strongly supported the development of education. The enrollment rate of undergraduates in the prefecture continued increasing from 2015 to 2018.

【Education on “Cloud”】

【Internet + 12345】

The “Simultaneous Class” relieves the teacher and educational resource

shortage problem of schools in remote areas, and is conducive to interactive

discussion teaching between students and teachers.

-Wu Guangsheng, teacher of Hanzhuang Town Central School

The Central School of Hanzhuang Town, Longyang District, Baoshan City, Yunnan Province, has seven village primary schools under its jurisdiction. But there is a serious shortage of teachers in primary schools in the mountainous area. With the help of optical network and education cloud, Baoshan Branch has achieved “Simultaneous Class” teaching, allowing a teacher to teach multiple classes at the same time, realizing the sharing of educational and teaching resources in the dam area, mountainous area, urban area and countryside.

border handling of police-overseas Chinese service, notarization and collection, judicial mediation, and so on, and moved the service window to overseas. By the end of 2018, Wenzhou City and six districts and counties had built service points, and six cities in four countries, including Paris, Rome, Milan, Prato, Dubai and Johannesburg, had established contact points.

The upgraded government services have provided more convenience to residents and improved efficiency. At present, the police-overseas Chinese service can handle more than 190 matters in the whole process. The proportion of “one website handling” is as high as 100%, and the proportion of “one certificate handling” is more than 60%. The time of conducting notarization and evidence collection for overseas Chinese in terms of inheritance has been shortened from the previous one-day and two trips across the country to about one hour and no need to return home. The time of judicial mediation filing and review has been shortened from 1 month to half an hour, and the time-length of trial has reduced from 140 to 29 days.

The Heart-to-Heart service outlets are located in all units of the villages, counties and the city. It receives and handles more than 2,000 demands and appeals from

the public in average everyday. The public satisfaction rate is as high as 95%.

-Li Yinzhong, Director of the Emergency Management Office of Leshan Municipal People’s Government

Working site of the provincial government hotline “12345” of Anhui

China Telecom actively cooperates with competent education departments at all levels and various schools, aiming to promote “Internet + education”, support educational reform, and improve educational equity and quality with smart education applications.

Smart Education

Anhui Branch supported the provincial government to build a unified government hotline platform “12345”, which uses cloud call platform to integrate all kinds of government consultation and complaint reporting carriers such as governor hotline, messages left on people.com.cn, governor’s mailbox as well as Weibo and WeChat, and to connect and integrate other service hotline systems. The platform has changed the previous mode of functional departments accepting and handling complaints and reports separately, and improved the supervision ability of government services. From January 4, 2018 when it was established to the end of 2018, the 12345 Operating Center had received more than 50,000 calls. Through unified reception and backstage transfer, the efficiency of the government hotline increased to 98% and the satisfaction rate of the public increased to 70%.

The “12345” Heart-to-Heart Service Platform and Hotline set up by Leshan Branch of Sichuan Province for the Municipal Government were launched in March 2018. The platform integrates 55 hotlines of various services, consultation, complaints and reporting in Leshan City, covering more than 3,000 departments at all levels and public service units. It collects public voices and opinions through 7 channels such as telephone and short message, and responds to the demands of the masses within a time limit. At the same time, it realizes city management and emergency commanding, city operation monitoring and traffic guidance.

32 33

BO

OST TH

E HIG

H-Q

UALITY

DEVELO

PMEN

T OF D

IGITAL

ECO

NO

MY


【Internet + Family Doctor】

On July 13, 2018, China Telecom launched “Healthcare Cloud Zone” at the Information Network Congress of China Hospital Associaation (CHIMA), which will provide cloud migration, cloud backup for disaster recovery, cloud coordination, cloud research and other cloud services

China Telecom actively advances “Internet + Healthcare” with its partners, and supports healthcare authorities at all levels and medical institutions to promote healthcare platforms and applications, innovate healthcare service models and improve healthcare service.

Smart Healthcare

Results of “Healthy Gansu” APP for the Past Year

Screenshot of “Healthy Gausu” APP

Gansu Wanwei Information Technology Co., Ltd. is a subsidiary of China Telecom. The company made active cooperation with the Health and Family Planning Commission of Gansu Province, and developed a “one-stop” medical convenient service window -- “Healthy Gansu” APP relying on the Gansu Provincial People’s Health Information Platform. The APP integrates various kinds of medical services and other resources in the province, and provides 19 kinds of convenient services for the people, including online appointment & registration, clinic payment, examination and test report inquiry, residents’ electronic health records inquiry, medical insurance inquiry, birth medical certificate inquiry, family doctor signing, intelligent guidance, antenatal examination, nearby pharmacy inquiry, and health education.

【Assist Healthcare Resource Integration】

Hubei Branch actively supported the Health Commission of Hubei Province to promote the application of “Internet + family doctor contracting service” and the APP of “Family Doctor Smart Healthcare”. The software can facilitate family doctors to make real-time inquiry of contracted residents’ information, conduct home fol low-up, diagnosis and treatment, and facilitate users to enjoy services such as contracting, referral, appointment, medical insurance cost inquiry. It also enhances residents’ awareness and acceptance of the family doctor contracting services. By the end of 2018, 12,000 family doctors in six cities, including Xianning, Jingmen, Suizhou, Tianmen, Huanggang and Shiyan, had provided healthcare information services to users.

On May 19, 2018, the Health Center of Maliang Township in Shayang County, Jingmen City, Hubei Province cooperated with Jingmen Branch on carrying out family doctor contracting service for local residents

The “Family Doctor Smart Healthcare APP” makes it easier for me to contact

doctors of the community hospital. Thanks to their patient treatment and regular

home follow-up, my gout has been relieved gradually.

-Li Jiafu, an elderly man from Shengyanggang Community, Huangshi City,

Hubei Province

Jiangxi Branch helped the Health and Family Planning Commission of Jiangxi Province to build the “Family Doctor Contracting Service Cloud Platform” information system, which realizes the interconnection with residents’ electronic health records, forms a family doctor contracting service database, as well as facilitates residents to enjoy contracted services through mobile APP and WeChat, and to interact with medical staff. By the end of 2018, the platform had covered 41 districts and counties in 7 cities, and 20,000 family doctors had signed contracts to serve more than 3.2 million residents with the help of the platform. Among them, more than one million were poor people, low-income households and other residents with difficulties.

At present, more than 1,500 poverty-alleviation targets in our township have enjoyed contracted services through this platform. We can guide them to use drugs and

provide services through mobile phones, which not only improves our work efficiency, but also makes it easier for the masses to seek medical advice.

-Zhong Peng, a doctor of the Health Center of Changping Township, Shangsu County, Pingxiang City, Jiangxi Province

Registered users over

600,000

Provided users with appointment & registration for

2.4million times

Reports inquired for over

110,000times

Clinic payment for over

100,000times

Since 2015, Yunnan Branch had helped the First Affi l iated Hospital of Kunming Medical University to build a “smart hospital” and implemented a series of projects such as mobile doctor station and medical imaging cloud. On August 3, 2018, the Integrated Imaging Diagnosis Center and Cloud Imaging Remote Consultation Platform of the Hospital were launched, providing medical imaging diagnosis, auditing and consultation services for all iance hospitals relying on CT’s advantages of cloud computing and communications network, and helping grass-roots hospitals to improve the level of medical imaging diagnosis, and enabling patients in remote areas to share the high-quality resources of provincial hospitals.

“Healthy Gansu APP” has very good functions, especially appointment &

registration. Generally, reservations are available for public hospitals and it is free

for use. It is a quality product.

-Wang Yujie, a resident of Anding District, Dingxi City, Gansu Province

With the rollout of the platform, the interaction between our hospital and the lower level alliance hospitals has been greatly promoted. We can better fulfill

our responsibilities as a central hospital and serve more patients.

-Wang Kunhua, Chief of the First Affiliated Hospital of Kunming Medical University

34 35

BO

OST TH

E HIG

H-Q

UALITY

DEVELO

PMEN

T OF D

IGITAL

ECO

NO

MY


With the one-key call service on the home-based elderly care platform, the

children are reassured, and the life has become colorful, bringing real happiness.

-Wang Shuang, an oldest old of Houxu Village, Wangchuan Township,

Huian County, Quanzhou City, Fujian Province

China Telecom focuses on community management, service and daily life to promote IT-based applications, and assists the building of safe, convenient, mutual help, harmonious, shared and beautiful smart communities.

Smart Community

Langfang Branch of Hebei Province implemented a demonstration project of smart elderly care with its partners in December 2018 and built

a Smart Elderly Care Platform, which can realize the functions of emergency call for help, real-time location information inquiry, real-time health

data collection and real-time interactive communication with children for the elderly. Children can also initiate massage physiotherapy, registered

drug purchase, chatting and accompanied doctor visiting, housekeeping and cleaning, door-to-door delivery and other service needs through the

platform.

Fujian Branch assisted Gulou District of Fuzhou City in building Smart Junmen Community by taking advantage of IoT, cloud computing, mobile internet and other new-generation information technologies. By the end of 2018, the community had installed 20 types of smart facilities, including smart monitoring, 5G patrol, smart broadcasting, smart lamp-post, smart water meter, smart fire hydrant, smart smoke detector, IoT geomagnetism, environment monitoring and smart charging pile, achieving IT-enabled smart management and service and providing safe, comfortable and convenient modern living environment to residents. Now, the platform model has been replicated and promoted to 12 provinces/autonomous regions/municipalities directly under the central government such as Jiangsu, Shandong and Jiangxi.

【Smart Junmen Community】

System platform of Junmen Community in Fuzhou City

Quanzhou Branch of Fujian Province integrated online and offline resources such as home-based elderly care hotline, elderly care phones and household service to build an information service platform for home-based elderly care, providing convenient and warm services to the elderly. By the end of 2018, the platform had covered 12 districts/counties of Quanzhou with the number of users reaching 58,000. In particular, the platform service in Huian County has covered all towns and 12,000 oldest-old people.

【Promote IT-based Smart Elderly Care Service】

On September 12, 2018, Huian County Branch was processing the applications for home-based elderly care information service for the elderly people in Tucuo Village

After upgrading to a smart community, people’s lives are more convenient, comfortable and safer in charging electric cars, taking out garbage, enter and exit,

collecting express delivery... and our living environment and happiness have been greatly improved!

-Lin Dan, Party secretary of Junmen Community, Gulou District, Fuzhou City, Fujian Province

China Telecom supported local governments and communities to build information platforms for home-based elderly care and facilitates the development of the elderly care service course.

Smart Elderly Care

By the end of 2018, the first stage of the Smart Elderly Care Platform has completed

Constructed more than 970 “smart rooms”

Served more than 1,000 elderly people

Examples of Community Smart

Facilities

Smart lamp-post

Smart pluviograph

IoT geomagnetism

Smart fire hydrant

Smart mouse cage

Smart charging pile

Smart control of the lamp-p o s t , o n e - b u t t o n c a l l police for help, air quality monitoring, LED information release, etc.

Sensing the amount of rainfall in the community a n d re p o r t i n g d a t a , supporting pre-judgment of and decision-making on waterlogging

Perce i v i ng pa rk ing lo t situation on the road and helping residents to shorten the t ime in look ing for parking space

C o l l e c t i n g d a t a o n mouse cage situation and make sc ien t i f i c ana l ys i s , improv ing deratization effects

Intelligently adapting to the charging of electric vehicles, powering off automatical ly when fully charged, cash-free payment, and preventing fire hazards

Knowing about whether the water volume and pressure in the hydrant meets standards in real time

36 37

BO

OST TH

E HIG

H-Q

UALITY

DEVELO

PMEN

T OF D

IGITAL

ECO

NO

MY


In 2018, China Telecom fully promoted Family Cloud service oriented to family customers and brought new experience to family life.

【Family Cloud】

China Telecom made in-depth understanding of families’ needs for information life services, conducted active cooperation with partners, and provided diversified businesses and services to families such as Tianyi Gateway, IPTV STB, Xiaoyi Smart Home APP, intelligent networking, and Family Cloud, to enrich smart home experience.

Smart Home

Introduction of Smart Home Products Promoted in 2018

Product Usage

Tianyi Gateway· Realize wired and wireless Internet access, IPTV carrying, voice and other home broadband businesses, and support smart

application loading and remote control of applications via Tianyi Gateway APP

IPTV STB · Achieve live TV, TVOD, instant replay, entertainment and interactions, and support 4K ultra-high definition video

Xiaoyi Smart Home APP

· Management and control of Tianyi Gateway, WiFi devices in the house, smart home terminals, IPTV STB and other equipment

Intelligent networking· Provide standardized network evaluation services for family users, as well as design, installation and deployment of home

wired and wireless networking solutions and continuous support services, and networking terminal products can be provided according to customers’ needs

Family cloud· Realize safe backup and sharing of family photos and data by outputting multi-scene cloud services such as family album,

video monitoring, storage management, etc.

On September 13-15, 2018, participants were learning about the functions of Family Cloud with interests at the 10th E-Surfing Smart Ecosystem Expo in Guangzhou

On June 16, 2018, users from Rui j in City of J iangxi Province were experiencing the instant TV watching function of Family Cloud at the service hall on Hongdu Avenue

Having installed the smart water meter, residents can check the water usage and water quality in their homes in real time via the APP, and it helps our water

company save about 2.5 million tons of water annually.

-Peng Lingyou, General Manager of Yingtan City Water Supply Company in Jiangxi

Examples of Family Cloud use

China Telecom gives full play to its advantages in NB-IoT, which are wide coverage, low energy consumption, low cost, and large connection to facilitate the promotion of smart living facilities.

【Promote Smart Living Facilities】

One member uploading for family sharing, reducing the trouble of multi-sharing among family members

Parents can play and watch the HD photos and videos on TV instantly

T-level home storage room, meeting the storage need of family photos and videos

Smart parking

Chongqing Branch assisted the local in constructing smart parking facilities. Through the collaboration of “geomagnetic vehicle detector + PDA handheld terminal + cloud platform + APP”, the facility realizes the intelligent functions of parking space data collection, status monitoring, parking space search, online payment, charge management and law enforcement supervision, and links various kinds of parking space information in a smart way to form an integrated smart parking management platform. It not only improves the efficiency of parking spaces, facilitates parking for residents, but also promotes regulated parking. By the end of 2018, 8,000 smart parking spaces had been built.

Smart water meter

Yingtan Branch of Jiangxi Province supported the local to promote IoT smart water meter, which has the functions of remote data transmission, real-time monitoring of water use, transmission difference statistics, energy consumption monitoring, automatic and fast generation of report forms, effectively avoiding the water cost loss caused by pipeline leakage, misreading and missed report, and significantly reducing the operation cost of the water company. By the end of 2018, the urban area of Yingtan had basically completed the coverage of IoT smart water meter.

Smart gas

Guangzhou Branch of Guangdong Province, in cooperation with Guangzhou Gas Group, upgraded the traditional meter reading to NB-IoT intelligent meter reading, covering more than 100,000 households by the end of 2018. Tangshan Branch of Hebei Province, jointly with the gas equipment manufacturing enterprise, has built NB-IoT gas application in the local area to realize gas management and gas monitoring. By the end of 2018, it had covered 42 residential quarters with 16,000 users. Beijing Branch assisted Beijing Gas Group in building an IoT-operation cloud platform, connecting smart terminals such as intelligent gas meters, intelligent gas manhole covers, medium and low voltage regulator stations/boxes and pipeline network monitoring to the Internet of Things, realizing real-time monitoring of terminal status, real-time data transmission, opening a new operation model of “Internet + energy services” for residents, and providing smart gas services to residents.

Smart manhole cover

In 2018, Wuhan Branch of Hubei Province assisted the local municipal authorities in deploying more than 2,800 smart manhole covers. If the cover equipped with tilt angle and acceleration sensor is opened illegally, the sensor information will be transmitted to the system center through the IoT, and then immediately pushed to the mobile App of the manhole cover maintenance personnel, so that the cover with problems can be handled in time, effectively avoiding the use and personal safety issues caused by the damage, looseness and loss of the cover.

Smart zebra crossing

In 2018, Yiwu Branch of Zhejiang Province assisted the local in pilot building of the traffic management and alarm system for pedestrians crossing red lights – “Smart Zebra Crossing” to escort road traffic safety. When the red light is on, the video will automatically detect and capture the signal of pedestrians running through the red light. The voice broadcasting system will remind the pedestrians to pay attention to yielding in real time, and a warning light strip will form. When a vehicle fails to evade pedestrians passing through the zebra crossing, the geomagnetic induction system will activate the aerial probe video to obtain evidence, and the illegal vehicle will be punished accordingly. For repeated “forbidden-breaking” behavior, it can also be included in the personal bad behavior record of the social credit system.

38 39

CR

EATE A BETTER

LIFE W

ITH H

IGH

-QU

ALITY D

EVELOPM

ENT TO

GETH

ER


China Telecom has actively enhanced communication with customers, protected customers’ rights and interests in accordance with the law, innovated service modes in line with customers’ requirements, carried out timely rectification on service problems taking customer’s opinions into consideration and strived to provide services with high quality to customers.

Serve Customers Wholeheartedly

3938

China Telecom continued to carry out theme activities such as“President’s Service Day”, “Listening to 10000” to enhance communication with customers and sincerely listen to their opinions through multiple approaches including hotlines and face-to-face communication.

Enhance Communication with Customers

【Customer Hotline】

By tuning into the program, I have deeper understanding of the products and

services of China Telecom, and developed new understanding of connection

speed of WiFi. I have also followed the official WeChat account of “China

Telecom Customer Services” to learn more about network and how to prevent

fraudulent communications.

-Testimonial from Li Fengqing, a taxi driver of Xining, Qinghai Province on

July 31, 2018 after tuning into the “Sunshine Hotline”, a live radio program of

Xining Broadcasting Station

Lijiang Branch of Yunnan Province, Xining Branch of Qinghai Province attended live programs of local radio stations, and interacted with audience on public concerns including increasing broadband speed and lowering tariffs, installation and maintenance of broadband, HDTV and BestPay businesses, construction of smart city, and prevention of fraudulent communications etc., and answered their questions in these regards.

On September 14, 2018, He J iex ing, Deputy Genera l Manager of Lijiang Branch (first person from right) answered customers’ calls during “Administrative and Trade Practice Hotline”, a generalist news radio program of Broadcasting and TV Station of Lijiang to communicate with them on service problemsThe final goal of high-quality development is to enjoy a better life. China Telecom has been serving

customers wholeheartedly, facilitating growth of employees, practicing green development, making earnest efforts to social welfare undertakings, and fulfilling overseas responsibilities, striving to create and share a better life together with all parties.

Serve customers wholeheartedly

Facilitate gowth of employees

Make earnest efforts to social welfare

undertakings

Practice green development

Fulfill overseas responsibilities1 5

23

4

CREATE A BETTER LIFE WITH HIGH-QUALITY DEVELOPMENT TOGETHER

CR

EATE A BETTER

LIFE W

ITH H

IGH

-QU

ALITY D

EVELOPM

ENT TO

GETH

ER

40 41

CR

EATE A BETTER

LIFE W

ITH H

IGH

-QU

ALITY D

EVELOPM

ENT TO

GETH

ER


China Telecom has earnestly implemented the Consumer Protection Law, Advertising Law and other laws and regulations concerning the protection of rights and interests of customers, adhered to the provision of products and services in accordance with laws and regulations, strictly carried out the compliance review of advertisement, and continuously standardized service tariff management. In 2018, China Telecom strengthened protection of users’ personal information, reinforced management and control of complaints, and responded to and handled problems reported by users in a timely manner; improved the conduct of people working in the industry, rapidly dealt with and completed handling of specific problems identified by the State Council during accountability inspection; customer complaint rate was below the threshold set by the MIIT, staying at the lower level of the whole industry.

Protect Customers’ Rights and Interests

In 2018, we continued to improve the basic service capabilities, taking into consideration of opinions and suggestions of customers. According to the statistics and evaluation of MIIT, customer satisfaction with China Telecom saw improvement in the aspects of mobile internet, mobile voice, broadband Internet and fixed line voice from 2017, with users’ satisfaction of mobile and broadband Internet remained top of the industry.

Improve Service Capabilities

City and county branches across Anhui Province carried out activities with the theme of “Better Life with Quality Consumption” to provide telecom business enquiry service and anti-fraud campaign for citizens, helping them understand types and means of telecom fraud and raising the awareness of protecting their own rights and interests.

Yuanling County Branch of Huaihua City, Hunan Province arranged the “General Manager Reception Day” on the same day with “March 15th Consumer Rights Day” when the general manager of the Branch would communicate with customers on the spot, and make promises including not to sell smuggled phones and refurbished phones to the public.

【“Consumer Rights Day” Service Campaign】

China Telecom launched “unlimited data plan” in 2017 by taking example of international counterparts, with the aim to satisfy users’ rapidly growing demands for data while taking into account the mobile network capacity and fair use of network. The plan featured unlimited data credit every month, but a speed limit would be imposed when the data usage reached the threshold for speed restriction. However, during the promotion campaign, the term of “speed limit for overuse of data” was not explicitly specified, leading to irregulated promotion and causing confusion for users.

Based on users’ reflection, with combination of regulation requirements, China Telecom carried out self-inspection and rectification in an all-round manner targeting at the problems mentioned above in June 2018 to improve tariff publicity, data usage notification and reminder services, and the supervision and comments from users and the public were much welcomed. The “unlimited data plan” has been canceled together with the promotion campaign since September 27, 2018. Instead, an improved “E-surfing data package” featuring the enhancement of sense of value gain was launched.

【Standardized Promotion of “Unlimited Data Plan”】

Measures Content

Strengthen protection of customers’ personal data

· Based on the previous system, combining with laws, regulations and regulatory requirements, the newly developed “Administrative Measures for the Protection of Customers’ Personal Information of China Telecom” has clarified the responsibilities of each section including business management, operation and system on protecting users’ personal information, standardized the gathering, storage, transportation, sue and destroy of user information, and strictly controlled the authority of service staff in terms of user information enquiry and handling, guaranteeing that data are gathered with good reason, storage are for use, use is traceable and misuse of the data must be investigated and dealt with

· Carried out inspection on personal information protection work, urged the fulfillment of responsibilities and implemented risk rectification measures

Strengthen management and control for complaints

· Established a two-tier (HQ & Provincial branch) complaint traceability and handling mechanism, and pushed forward the rapid rectification of issues being complained

· Timely rectified problems most complained by users such as disputes on tariffs of value-added services and differentiated rights enjoyed by new users and retaining users respectively, and adopted “zero tolerance” policy for “malicious deduction of tariffs”

Major Measures to Strengthen Protection of Customers’ Rights and Interests in 2018

On March 15, 2018, Li Bo, General Manager of Yuanling County Branch of Huaihua City, Hunan Province answered users’ questions on the spot and addressed their problems

On March 10, 2018, Shanghai Branch arranged Xu Jun, a national model worker and “Shanghai Craftsman”, to attend “March 15 Volunteer Service Activity” with an expert team to listen to users’ opinions and suggestions and answer their questions

I have bought the smart phone for more than one year, and still could only use it to make and answer calls. At the “Happy Classroom”, I learned how to use my

phone to take pictures, use WeChat app and watch videos, and the staff would guide me step by step on the spot when I encountered any confusion. I have learnt quite

a lot.

-Li Mingyu, an elderly smart phone user in Longyan, Fujian Province

In 2018, China Telecom launched the “Happy Classroom” for middle-aged and elderly users, helping them learn how to use smart phones and enriching their information lives.

【Happy Classroom】

The “Happy Classroom” of Bobai County Branch, Yulin City of Guangxi Zhuang Autonomous Region provided practical courses for elderly users such as how to use smart phones and how to prevent fraudulent communications. The picture shows Zhou Xiaofeng, a volunteer was teaching an elderly user how to use smart phone apps on June 8, 2018

Examples of Results of Improving Basic Services in 2018

Time required for repairing faults for government

and corporate customers reduced by

%

Compared with earlier this year, time required for installation and

relocation of devices for government and corporate customers reduced by

%

Timeliness of 24-hour IoT fault repairing

enhanced by

pp yoy

Branches across Zhejiang Province held activities in their central service halls every week, where service staff would teach aged people how to use popular apps such as WeChat and Taobao, and order food delivery and taxi using mobile apps. Many branches arranged teachers to give featured courses. For instance, at Wenzhou South Railway Station service hall, Teacher Dong taught elderly people how to complete pension verification online and use Alipay to pay bus fees; at Wulin Square service hall in Hangzhou, Teacher Ye explained how to use BestPay to pay public services and utility fees; at Dongjie service hall in Shaoxing, elderly users learned how to produce music album. By the end of 2018, branches across Zhejiang Province have held almost 300 “Happy Classroom” activities and attracted more than 20,000 learners.

Longyan Branch of Fujian Province held 45 “Happy Classroom” activities at its main service hall in 2018. Facilitated by teaching videos, staff there explained how to use the mainstream apps of smart phones, and guided the elderly users to use these apps by themselves step by step.

Excellent rate of IPTV video quality

exceeded

%

42 43

CR

EATE A BETTER

LIFE W

ITH H

IGH

-QU

ALITY D

EVELOPM

ENT TO

GETH

ER


Hello, I would like to give a good comment for the maintenance staff, who repaired my broadband fault within one hour, which is fast and with good quality.

-A telephone record of a call to 10000 from user Fu Yang in 2018, who lived in the Beiyuan Community of Liaokuo North Road of Qilin District of Qujing City,

Yunnan Province

Moerdaoga, a town under county-level city of Ergun under the prefectural-city of Hulun Buir, Inner Mongolia Autonomous Region, is located in the heart of the primeval forest of Greater Khingan Range, with 7-month freeze period a year and the lowest temperature of -50°C. Chai Ruifeng, the head of China Telecom Branch of this village, has been working here since 2009. As a “Post-80s”, he is called “Little Brother Chai.”

He is responsible for the maintenance of 34 base stations and 1,130 households of broadband users in an area of 12,000 km2. He needs to perform maintenance work at the base stations for more than 100 times in a year. The farthest base station is more than 400 kms away from the town, and it will

【Perseverance of “Little Brother Chai”】

Chai Ruifeng made urgent repairs on fiber optical cable in primeval forest area on March 10, 2018

Users are very grateful every time I solved the breakdowns. Seeing their

satisfactory smiles on their faces, my tiredness and painstaking would become

nothing at all.

-Chai Ruifeng, Director of Moerdaoga Sub-branch of the Branch of

Ergun under Hulun Buir, Inner Mongolia Autonomous Region

China Telecom is people-oriented. We protect employees’ rights and interests in accordance with the law, attach importance to the establishment of harmonious labor relations, support trade unions to perform their functions, encourage employees to participate in the management, actively help employee improve their abilities and expand their careers, so as to promote high-quality development with high-quality staff.

Facilitate Growth of Employees

China Telecom conscientiously observes Labor Law of the People’s Republic of China, Labor Contract Law of the People’s Republic of China, the Trade Union Law of the People’s Republic of China and other laws and regulations on labor employment and the protection of employees’ rights and interests; protects employees’ labor, democratic, spiritual and cultural rights and interests in accordance with the law, and continuously builds ourselves into an enterprise with harmonious labor relations. We employ labors by law, standardize employment, and ensure that contract workers sign labor contracts and pay social insurance premiums. We adhere to labor policies including equality between men and women, equal pay for equal work, protect employees’ privacy by law and implement a paid vacation system. We sign dispatching agreements with the labor dispatching companies and safeguard dispatching workers’ rights and interests by urging the companies to sign contracts with the workers. We also prohibit the employment of child labor and forced labor strictly in accordance with the law.

Enterprises at all levels of China Telecom have continuously strengthened the development of trade unions, with the number of grass-roots trade union organizations reaching 2,605; they have also actively supported trade unions in performing their functions in line with the law, and given their roles of liaison with workers and office staff, reinforcement of democracy at grass-roots level, safeguard of employees’ legitimate rights and interests, and promotion of stable development of the enterprise into full play. In 2018, trade unions at all levels had provided legal consulting services for more than 2,200 employees.

Safeguard Employees’ Rights and Interests

In 2018, China Telecom organized various labor competitions, skill and knowledge competitions to guide employees to improve their capabilities and qualities, and make achievements in transformation and development, so as to achieve personal development and value enhancement. We revised Measures for the Management and Provision of Services for High-level Professional Talents, and carried out the construction of the Hundred Thousand Million Experts and Talents Project; launched selection of new chief experts of China Telecom; implemented “Spark Program” in areas such as 5G, cloud computing, big data, etc. to strengthen the cultivation of professional leading talents for transformation.

Encourage Employees to Grow

Anhui Branch set up a legal aid studio for employees in 2018, leveraging the internal resources including corporate counsels to provide legal aids such as consultation on legal issues, of fer ing of sample legal documents, and recommendation of representing lawyer for i ts employees and the i r fami l ies f ree of charge. By the end of 2018, the studio had provided over 60 legal aids for employees cover ing the areas of housing transaction disputes, d ivorce proceedings, persona l r ight or proper t y in f r ingement disputes, inheritance of property and so on, and was welcomed by employees.

【Legal Aid Studio for Employees】

In 2018, China Telecom continued to carry out series of activities themed as “I Innovate at my position” to create an environment where everyone can innovate and everything can be innovated. Nearly 4,000 teams and individuals across the Group Company displayed and shared the innovative achievements via the employee exchange platform. The Group Company selected and commended 99 outstanding teams and 99 outstanding individuals, and enterprises at all levels organized more than 2,500 activities under the theme, including selection of innovations, case sharing and micro-innovation.

Carry Forward the Spirits of Model Workers and Artisans

Previously, when I encountered legal problems, I didn’t know whom I

should turn to, and legal services provided by a lawyer are not free. It’s much

more convenient now with the establishment of the legal aid studio.

-Li Hui, an employee of Bengbu Branch, Anhui Province

Qinghai Branch overcame the difficulties brought about by plateau environment and poor transportation, and strived to promote the “fast service” of broadband installation and repair. All work orders received before 16:00 should be completed on the same day. The satisfaction index for installation and repair has risen from 89.3% at the beginning of the year to 98.7%, with the timeliness index of same-day installation reaching 97.6%.

The coverage of “Same Day and Compensation” service of Yunnan Branch included optical broadband, 4K TV, fixedline telephone and smart home terminals, and the service objects have also been expanded from households to government and corporate customers; 7×24 on call night services has been introduced to the urban areas where conditions permit in the City of Kunming. By the end of 2018, the same-day installation performance rate and the same-day repair completion rate had reached 98.8% and 95.8% respectively, up by 16.1% and 3.2% compared with earlier period of the year.

In 2018, China Telecom further expanded the objects and scopes of the “Same-Day Installation and Repair, Compensation for Delay” services, and upgraded the services to provide more efficient and convenient service experience for users.

Since the launch of the “Same Day and Compensation” service in 2017, Hainan Branch has seen the significant rise in both the timeliness and return visit satisfaction rates of installation, relocation and fault repair performance. By the end of 2018, the timeliness of installation and relocation had risen from 85.0% to 95.9%, the timeliness of fault repair performance had increased from 56.0% to 94.2%, and the return visit satisfaction rate had improved from 96.5% to 97.5%.

【Same-Day Installation and Repair, Compensation for Delay: Service Delivery with Faster Speed】

Fu Xiaoming, Installation and Maintenance Manager of Qinglan Branch of Wenchang City, Hainan Province conducted broadband repair services in a customer’s place on November 1, 2018

take at least 5 days to complete the routing inspection and services. In winter, the mountain passes are sealed by heavy snow, and it is impossible for vehicles to drive to the base stations situated up in the mountain. Little Brother Chai must walk to the base stations alone, carrying tools and apparatuses weighing more than 10 kgs on his back. It may take him more than 3 hours to pass the more than 2-kms mountain road if the road is deeply covered by snow. Holidays and festivals are peak periods for network use. Every time he receives a fault report call, he would immediately rush to the scene, regardless of distance. During the fire season, he should intensify the routing inspection of forest base stations. In case of fire, he needs to put out the fire to guarantee effective communications. Ticks are commonly seen in the forest area, and a tick bite might lead to forest encephalitis. Little Brother Chia was bitten for twice in 2018. Even so, once receiving fault reports, he would immediately get ready to set out. In the past 9 years, Little Brother Chai has measured this vast land with his firm footsteps, and maintained the network that is mostly close to the users with professional dedication, providing first-rate services for users on the ordinary post day in and day out.

Chai Ruifeng was awarded “May 1st Labor Medal of Inner Mongolia Autonomous Region” in 2016, “National May 1st Labor Medal” in 2017, and attended the 17th National Congress of the All-China Federation of Trade Unions (ACFTU) as a representative in October 2018.

44 45

CR

EATE A BETTER

LIFE W

ITH H

IGH

-QU

ALITY D

EVELOPM

ENT TO

GETH

ER


In 2018, China Telecom gave full play to the online and offline training capacities of China Telecom College and China Telecom Online University respectively, taking into account requirements of employees of different positions at all levels to provide targeted training programs for capability enhancement, strengthening the cultivation of managerial staff, professionals, small CEOs, front-line staff and new staff.

Cultivate New Employees with High Professional Skills

Zhejiang Branch selected more than 100 young talents in 2018 to attend “Zhijiang Spark Plan Special Force Training Camp”. After one-year capacity enhancement training and accelerated cultivation, 43 people among them have been promoted to positions such as assistant directors of district or county branches or directors of sub-branches

On August 14, 2018, Jiangsu Branch held an exchange and training class for excellent directors of rural sub-branches in South-Jiangsu Area named “Across the Top”, where more than 50 directors of sub-branches shared their practical experience and methods in daily management, activity planning and organization, channel marketing and the operation of new retail

On January 24-26, 2018, the Group Company held the 4th “i Make” Dark Horse Contest to identify excellent big data talents, and promote the in-depth integration of big data with physical business

On January 16, 2018, Heilongjiang Branch held the “Golden E-Surfing of 10000” Young Employee Job Skills Contest to enhance young employees’ capabilities to serve customers by intelligent means

On October 20, 2018, Taizhou Branch, Jiangsu Province held the first Youth Conference themed “ Make Sail & Makers”, and presented 12 teams consisting of young staff with flags to encourage them to carry forward the spirit of model workers, enrich lives by working tirelessly, and accomplish their values by making creations

On September 18, 2018, Lincang Branch, Yunnan Province set up the “Network Innovation Studio of Lincang” led by Yang Wenrong, a Model Worker of Lincang City to mobilize staff to contribute their intelligence and wisdom to innovative development

Object Main Action

Leaders

· Revised rules of the administration of leaders, detailed requirements and competency models for SOE leaders, and improved talent selection and appointment mechanism

· Revised comprehensive appraisal methods for leaders, strengthened leadership training, as well as triggered and protected entrepreneurship

Professionals

· Stipulated methods for the management and services provision for high-level professionals, and clarified the objectives, plans and relevant policies regarding the building of a high-level professional talents team

· Continued to introduce talents, appointed chief experts, selected and nurtured young talents, and cultivated professional leading talents with international perspective and technical foresight through “Spark Program”

· Innovated talent management, improved talent work station mechanism, worked out pilot measures of talent zone and implemented them, and carried out mechanisms such as offsite dispatchment, R&D project and R&D professional channel in some professional companies

General staff

· Strengthened on-the-job training, with training hours reaching 25 hours per person. 4,745 small CEOs received training provided by the Group Company, up by 43% compared with 2017

· Organized skill certification and professional tests covering 100,000 employees

· Carried out skill contests of various kinds

Main Actions of Employee Training in 2018Major Achievements in Carrying out the Spirits of Model Workers and Artisans in 2018

Achievements commended or promoted

Innovation-at-position studios set up for employees

Innovation-at-position achievements selections carried out within the year

Employees awarded the title of “Technical Experts of Central

Enterprises”

National honors awarded Ministerial level honors received

Excellent Female Service Hall Managers and Channel Managers

appraised and elected

“Technical/Labor Models of the Group Company” appraised and

elected

“Technical/Labor Experts of the Group Company” appraised

and elected

+ times+ +

46 47

CR

EATE A BETTER

LIFE W

ITH H

IGH

-QU

ALITY D

EVELOPM

ENT TO

GETH

ER


China Telecom respects and implements employees’ right to know, to participate and to supervise, puts the mechanisms of workers’ congress, factory affairs disclosure and democratic management in practice, actively encourages employees to participate in business management, and unblocks the channels of employee appeal. In 2018, we conducted surveys covering 547,000 employees to find out their thoughts, lives and working conditions, and trade unions at all levels handled 135,000 concrete affairs in a down-to-earth manner for employees.

Management Participation of Employees

Overview of Employees Management Participation through the Workers’ Congress

Appeal Expression Mechanism for China Telecom’s Employees

On March 30, 2018, Dong Tao (the first left at the rostrum), General Manager of Jiangsu Branch conducted a zero-distance dialogue with heads of county branches, and answered questions on spot

Companies at all levels continue to improve the working and living conditions of employees considering employees’ appeals, care about employees’ mental health, energize employees’ spiritual and cultural life, help employees in difficulty and special groups, and care for the retirees.

Care about Employees’ Life

In 2018, China Telecom further improved the dining, activity and rest conditions for grassroots and front-line employees: we built 2,203 new small canteens, small shower rooms, small bathrooms and small activity rooms (“four smalls”) , consolidated 7,353 “four smalls”, and chose more than 1,100 “four smalls” as benchmarks. We also held a reading and essay writing activity under the theme of “Literature Family”. Furthermore, we built more than 1,000 new “Mummy Cottages”, and gave more than 700 themed lectures for female employees.

Improve Working and Living Conditions at the Grassroots Level

Tibetan Branch installed an oxygen generating device in the “home of staff”of Zhongba County Branch where the average elevation is over 5,000 metres

Five district branches under Nanjing Branch, Jiangsu Province set up more than 60 small canteens for sub-branches in rural areas to provide lunches for employees

Chongqing Branch opened a book Café for employees. It held an employee classic works reading activity on May 30, 2018

Guangdong Branch 10000 Shantou Area Center set up a “Working Area for Mother-to-bes” and a “Mummy Cottage”, held many breast feeding public lectures, and extended EAP training to the areas of parenting and healthcare during menstrual period, being named as a demonstration point by the Federation of Trade Unions of Shantou

The meticulous care provided for the mother-to-bes, including specially designed desks and chairs for pregnant women, radiation prevention aprons and foot pedals,

shows the human-based management of the enterprise from the details.

-Chen Fei, Vice Chair of the Federation of Trade Unions of Shantou

Employee representative proposal ( Piece )

Employee representative inspection tour ( Time )

Employee representative training ( Time )

2018

2018

2018

2,108

390

64

2017

2017

2017

1,353

437

59

2016

2016

2016

1,399

401

50

Workers’ congress, joint meeting of the heads of staff delegations, joint meeting of the trade union presidents, employee director a n d e m p l o y e e s u p e r v i s o r system, employee representative inspection system, factory affairs disclosure, rational proposal activities, etc.

Dialogue

Survey

Petition

Staff letters, e-mails, faxes, telephone calls, visits, etc.

Online Home of Staff Platform, questionnaire survey, third-party survey, etc.

Staff discussion meeting, general manager reception day, face-to-face activity, general manager mailbox, general manager online, business through train, fixed-point contact, employee forum, WeChat, Yixin work group, etc.

Democratic management

48 49

CR

EATE A BETTER

LIFE W

ITH H

IGH

-QU

ALITY D

EVELOPM

ENT TO

GETH

ER


In 2018, we thoroughly fulfilled the main responsibility of corporate production safety, and further improved the production safety responsibility system of “Party and government with the same responsibility, one position with two responsibilities, and accountability for negligence”. We fulfilled the responsibility for production safety positions and strengthened responsibility assessment. We held more than 1,200 production safety training courses on production safety laws and regulations and on company rules and regulations, thus enhancing employees’ awareness of safety, self-protection and self-prevention. We strengthened the training of special operators and made sure that they are employed with certificates. We conducted safety production supervision and inspection, and spotted hidden dangers and remediated in time. No major casualties or injuries occurred throughout the whole year. The death rate for a thousand employees was 0.0035, and the rate for serious injuries of employees was zero.

China Telecom seriously implements its occupational health management system, regularly organizes employee physical examinations, and pays attention to improving the working environment and conditions of employees. Occupational diseases have been effectively eliminated. The Group Company organized more than 2,700 health lectures and EAP stress relief activities to help employees relieve pressures. We provided more than 1,600 air purifiers and more than 6,000 water purifiers for grassroots companies. We also provided medical guidance services for more than 47,000 employees.

Companies at all levels regularly visit grassroots employees who are in difficulties and excellent employees. During the Spring Festival of 2018, solicitude was given to more than 60,000 front-line employees who remained at their posts on Chinese New Year’s Eve and during the Spring Festival holiday, and rescue was given to employees suffering natural disasters in 12 provinces. Altogether, 18,900 employees in difficulties received help and support from China Telecom.

Strengthen Safety and Health Management

Visit and Support Employees

On March 9, 2018, Suzhou Branch, Jiangsu Province gave a lecture on psychological decompression

On August 3, 2018, Shuangyang District Sub-branch of Changchun, Jilin Province organized a lecture on occupational health and first-aid & safety knowledge under the theme of “Harmonious Life and Healthy Chinese”

On July 6, 2018, Tibetan Branch visited employees who were retired, early retired and retired because of illness, to get the picture on their lives and exclude difficulties and anxieties for them

On June 1, 2018, Beijing Branch organized more than 160 children of employees to celebrate Children’s Day together

China Telecom has unswervingly implemented the concept of green development, and further promoted green network, green supply and green practices, striving to achieve its own green development and contribute to the green development of economy and society.

Practice Green Development

In 2018, China Telecom continued to implement energy-saving transformation of equipment to build a more energy-saving and environment-friendly network and reduce energy consumption.

Build Green Networks

Main Achievements of the Promotion of Energy Conservation and Emission Reduction in 2018

Main Actions of the Promotion of Energy Conservation and Emission Reduction in 2018

Area Main Actions and Progresses

Management of Energy Conservation and Emission Reduction

· Developed Measures for the Management of Electricity Charges of China Telecom to deepen the delicacy management of electricity charge

· Organized subordinate units to formulate three-year rolling plan for energy conservation and emission reduction

· Carried out evaluation of responsibilities for the energy conservation and emission reduction targets, awarding subordinate units that accomplished the energy-saving targets and punishing those failed to achieve the targets

· Provided energy conservation and emission reduction training for 4,995 employees, and carried out “Energy Conservation Week and National Low Carbon Day” activities through various means such as sales channels and new media

Elimination of Outdated Capacity

· Pushed ahead the withdrawal of obsolete and worn-out equipment with high-energy consumption from the networks, including 29% soft switch devices, 27 level I trunk transmission systems and 890 old circuits

· Optimized infrastructure configuration of computer rooms and carried out transformation to eliminate redundancy, with 128 diesel generators, 401 air conditioners in computer rooms and 65 high-low-voltage distribution boxes being reduced

Promotion of Energy-Saving Transformation

· Carried out smart energy conservation trial for Internet data center servers using big data, saving about 30% for energy consumption

· Introduced social capital and technologies by means of contract energy management to carry out energy conservation transformation

Electricity saved

Energy consumption per unit of data flow

Energy consumption per unit of data flow yoy decrease

kg standard coal/TB %

million kwh

50 51

CR

EATE A BETTER

LIFE W

ITH H

IGH

-QU

ALITY D

EVELOPM

ENT TO

GETH

ER


China Telecom Cloud Computing (Shaanxi) Base is an important IDC in Northwest China. Shaanxi Branch comprehensively adopted multiple energy-saving technologies such as natural cold source, water source heat pump, frequency conversion and air distribution optimization on devices with high-energy consumption like air conditioner and IT equipment for communications. Meanwhile, the company conducted accurate management of energy in computer room maintenance, which has effectively reduced energy consumption. Its PUE reached 1.55 at the end of 2018, staying at leading level among IDCs of the same type.

Tangshan Branch, Hebei Province has begun to promote electricity charge management system since October 2017, gathering and analyzing data of smart electric meters in computer rooms, such as electricity and temperature, and conducting delicacy management of the electricity charge. By withdrawing old computer rooms from the network in a planned manner, closing, suspending and merging computer rooms with low traffic volume ahead of schedule, and increasing capacities of power supply and improving air conditioning of computer rooms with high loads in a timely manner, in 2018, against the backdrop of a year-on-year increase of business revenue by 11.3% in 2018, the electricity consumption was 2.97 million kwh less than the electricity consumption in 2017.

【Examples of Actions on Promoting Energy Conservation and Emission Reduction】

Category Weight (ton) Value (RMB10,000)

Storage battery 12,067 8,133

Communications equipment

10,462 9,044

Cable 69,983 188,134

Terminal 655 2,514

Others 11,854 4,029

Waste Disposal by Third Party in 2018

China Telecom has proactively communicated with suppliers, and continuously promoted the application of green procurement indicators in the procurement process, giving priority to resource-saving and environment-friendly products. The proportion of energy-efficient power modules in DC power modules purchased in 2018 accounted for nearly 100%, and the energy consumption per unit of key professional procurement equipment such as mobile equipment and computer room air conditioners decreased by 4.3% compared with that in 2017.

China Telecom has strengthened the recycling, disposal and reuse of waste and old materials. In 2018, we revised the Management Measures for the Recycling and Disposal of Waste, Old and Idle Materials of China Telecom to enrich the ways of disposing waste, old and idle materials, standardize the recycling, disposal and reuse of waste, batteries, cables, terminals and other materials, reinforce centralized management and prevent risks of disposal; implemented close-loop management of fixed-line terminal equipment, and encouraged refurbishment and reuse of old equipment as well as cross-provincial allocation and use. For waste materials without recycling value, China Telecom has fully considered the environmental impact of material disposal, and properly treated them in strict compliance with national environmental protection regulations. More than 100,000 tons of wastes of all kinds have been recycled and treated throughout the year.

Promote Green Supply

China Telecom has conscientiously put into practice the implementation opinions of the MIIT and SASAC on co-construction and sharing of communications infrastructure, worked closely with other communications operators and China Tower Company to actively promote the co-construction and sharing of communications infrastructure such as base stations, pipelines and pole lines, effectively reduce redundant construction, protect natural environment and landscapes, and save the consumption of land, energy and raw materials. Regarding issues concerned by governments and the public, such as protection of arable land, equipment pollution, construction influence and electromagnetic radiation, we have taken environmental protection measures accordingly in construction.

Advance Green Projects

Infrastructure Co-construction and Sharing in 2018

On April 27, 2018, staff of Jilin Branch, Jilin Province carried out an activity to save old fiber optic modems. More than 20,000 old fiber optic modems were sorted out and packed for disposal and reuse

Environment Protection Actions Taken by China Telecom in Network Construction

Issues of public concerns

Environmental protection measures accordingly in network construction

Protection of arable land

· Gave preference to the existing housing and uncultivated land for the location of base stations instead of new arable land

Equipment pollution · Gave preference to the equipment without noise, electromagnetic radiation or production of pollutants

Construction influence

· Field communications route survey avoided the mineral resources, forests, grasslands, wildlife, natural monuments, cultural relics, nature reserves, scenic spots and other regions as far as possible

· Laying of fiber optic cable avoided changing the surrounding environment as far as possible

Electromagnetic radiation

· Carried out monitoring and evaluation of electromagnetic environment around the base station, strengthened communication with the community and accepted public supervision

· Strict control of network equipment quality ensured strict control from the source

· Adopted advanced technologies and fine base station layout to ensure that electromagnetic radiation indicators are lower than the national standard

Categories UnitParticipation

in co-construction

Provision for sharing

Pole line Line kilometers 4,950 21,845

Ducting Line kilometers 6,917 1,645

Indoor distribution Sets 6,094 927

Tuankou Village, Lin’an District, Hangzhou, before and after remediation of environment (the left picture was taken before the remediation and the right one is after the remediation). China Comservice Zhejiang Company assisted in the renovation of cables by burying them underground

Zhejiang Province has launched a three-year initiative to comprehensively remediate environment of townships since October 2016, with the aim to enhance the quality of work, life and ecological environment in an all-round manner. China Comservice Zhejiang Company has given full play to its advantage in the integrated services consisting of multi-specialty consulting, design and construction, and actively supported local governments’ implementation through the “consultant + staff” pattern. It supported the completion of remediation of 802 townships in 2017 and 2018, among which dozens of townships, including Tuankou Town in Hangzhou City, Wangdian Town and Xindai Town in Jiaxing City, have been selected as models.

【Support Comprehensive Remediation of the Environment】

Liuzhou DCM built by Liuzhou Branch of Guangxi Zhuang Autonomous Region fol lowing the concept of environment protection and energy conservation, was included in the first batch of national green data centers in February 2018 after being checked and evaluated by China Electronics Standardization Institute

52 53

CR

EATE A BETTER

LIFE W

ITH H

IGH

-QU

ALITY D

EVELOPM

ENT TO

GETH

ER


China Telecom has vigorously advocated conservation of water and paper, strengthened the management of water resource utilization, actively carried out sewage disposal, and promoted the cyclic utilization of production water; promoted and popularized the use of water-saving appliances, and regularly inspected and repaired all aspects of the water supply system to prevent the phenomenon of “permanently-flowing water” and “running and dripping”; and actively adopted technical and institutional measures to promote the reduction of paper use in business and office. In 2018, we continued to promote electronic management of accounting files, VAT electronic general invoices, electronic bills and paperless operations to reduce the use of paper-based materials; took the initiative to explore the interconnection between corporate financial reporting data and tax declaration system of tax bureau, and pushed ahead the automatic and paperless tax declaration.

Boost Green Office

In 2018, China Telecom proactively promoted ICT applications that could facilitate green development of economy and society in combination with customers’ demands.

Promote Green Applications

In 2018, Bestpay Co., Ltd.further promoted the development of smart administration, smart finance and smart human resources, and adopted multiple paperless applications such as the electronic archiving contracts, electronic signature, electronic invoice, online accounting and online study system. In 2018, against the backdrop of rapid business growth, the per capita paper use was 18.1 kg, down by 1.3% compared with that of 2017.

【Boost Paperless Office】

In 2018, Jiujiang Branch, Jiangxi Province facilitated Chihu Industrial Park to build up an ecological environment monitoring network and a comprehensive monitoring platform to conduct real-time monitoring and regulation of the ecological environment of the Industrial Park.

【Environment Regulation of Industrial Parks】

Located in Xinping County of Yuxi City, Yunnan Province, Ailao Mountain is a scenic area that is famous both at home and abroad. However, illegal lumbering has been rampant in recent years, which severely impacted forest vegetation. Since 2016, Xinping Branch has facilitated local Forestry Bureau to gradually build up “Forest E-tong” information system, enabling realtime video surveillance of 5 watchhouses and points across the county. By integrating the system into mobile phones, mobile surveillance is also available. With the launch of the system, the surveillance center and forest rangers could check and monitor forest situation at any time, and the wanton felling of trees, together with pollution, has been effectively contained. The Ailao Mountain has been restored to its former splendor.

The system was put into use in October, achieving the target of “finding out the real situation of environmental pollution, giving early warning in a scientific manner, coordinating testing and management, conducting dynamic prevention and control and making intelligent decision”, effectively enhancing the environment regulation capacity of the industrial park.

Screenshot of Big Data Platform of Ecological Environment Comprehensive Supervision Platform of Chihu Industrial Park

【Protect the Beautiful Ailao Mountain by “Forest E-tong”】

Now it is very convenient to implement management, and we could talk to leaders anytime during the inspection, sending pictures to him within

seconds if there is any problem.

-Wang Jiahe, Deputy Director of Gasa Control Station, Ailaoshan Protection Agency, Yuxi City, Yunnan Province

Delivery of e-invoice (optional)Delivery of e-invoice

Delivery of paper invoice

Printer

Customer Examination and invoicing staff

Tax-control invoicing system E-invoice service platform

Apply for invoicing

Enter transaction data

E-invoice data

Issuance of e-voice

Issuance of paper invoice

Generation of layout files

Generation of layout files

Printing of paper invoice

Choose invoice type

Distribution of invoiceSchematic Diagram of Electronic Invoice of Bestpay Co., Ltd.

Examples of system functions Practical application

Monitoring of pollution source· Realtime monitoring of the emission of waste water and exhaust gas from key polluters and emission data of

sewage treatment plants for analysis and early warning

Rainwater monitoring · Realtime monitoring of water quality of rainwater pipe network for analysis and early warning

Monitoring of off-odors at the boundaries of factories

· Realtime monitoring of off-odors and highly sensitive gases at the upwind and downwind outlets at the factory boundaries of key polluters

Display of big data · Displaying the dynamic change trends of environment quality and air quality of the industrial park by a picture

Enterprise portal · Coordinated business handling capacity between polluters and environmental protection authority

54 55

CR

EATE A BETTER

LIFE W

ITH H

IGH

-QU

ALITY D

EVELOPM

ENT TO

GETH

ER


China Telecom consciously participates in social welfare undertakings. Following the principle of “being voluntary, non-remunerated, clear powers and responsibilities, acting within the limit of resources, being honest and trustworthy”, we help the disabled and the poor, support science, education, culture and health, and spread civilized prevailing custom through donations of money and materials, and free services provision. We also encourage employees to actively participate in volunteer service activities.

Make Earnest Efforts to Social Welfare Undertakings

Through the service of care, employment assistance, items donation, mobilizing employees to make donations and other forms, China Telecom actively helps the disabled, vulnerable children, disaster-affected people and other social groups and cares for the elderly.

Help the Disabled, the Poor and the Weak

China Telecom advocated socialist core values, disseminated knowledge of science and technology through various forms, and actively encouraged and supported volunteers to participate in social public welfare activities.

Carry Forward Civilization

【Blood Donation】

【Care for the Elderly】

On October 17, 2018, a volunteer from Xuancheng Branch, Anhui Province trimmed nails for a senior person living in Huayi Nursing Home

On May 17, 2018, Ma Yimin, General Manager of Shanghai Branch (front left) presented AI-based voice watch and other articles for use to a representative of blind children during the caring activity

On June 25, 2018, technicians of Chengdu Branch, Sichuan Province came to the house of a disabled person in Wenjiang District to install a smart speaker for him

【Care for the Disabled】On October 17, 2018, the day of Double Ninth Festival, companies

of all levels expressed solicitude and care for the elderly in various ways. Volunteers of Liaoyuan Branch, Jilin Province went to Social Welfare Service Center of Dongliao County to visit veterans, orphans of Volunteer Army soldiers of the War to Resist US Aggression and Aid Korea and households enjoying the five guarantees. Volunteer service team of Xuancheng Branch, Anhui Province joined hands with Red Cross Society of Xuancheng to carry out volunteer services aiming for honoring the elders, sending support to them and conveying care. The volunteers visited Huayi Nursing Home in Yejiawan, trimming nails for them, helping them carry out physical examiniation, making dumplings and chatting with them.

On World Telecommunications Day 2018, Shanghai Branch joined hands with Butterfly Youth Care Service Center of Shanghai to co-organize a blind children caring activity themed “Touch Intelligence · Grow Up Together (Grow up with E-surfing)”, donating 200 AI-based voice watches to Shanghai School for the Blind and providing exclusive “caring for blind children” AI communications packs with discounts. AI-based voice watch could be used not only for making and receiving phone calls, but also for playing contents on demand, chatting and even English translation by means of voice interaction, helping blind children better perceive the world.

In June 2018, China Telecom Sichuan Branch worked together with disabled persons' federations across Sichuan Province to carry out a series of public benefit activities themed “The Temperature of Voice across Sichuan” to donate smart terminals to the disabled, helping them improve quality of life.

Support Science, Education, Culture and Healthcare Development

The telecommunications-themed micro film “Number of Love” was created by China Telecom Zhejiang Branch and starred by its employees. It tells a story about the development of telecom industry of Zhejiang, and was provided for watching on several mainstream video websites including 19lou, Tencent and Youku. It was awarded as an “Excellent Digital and Network Project in Commemoration of the 40th Anniversary of Reform and Opening up of Zhejiang Province”

【Number of Love】

On November 10, 2018, Wuxi Branch, J iangsu Province opened a telecommunications cultural experience point for children to see and use telecom devices so as to understand the development and technological evolution of the telecom business

On November 22, 2018, Yongchun Branch of Quanzhou City, Fujian Province cooperated with Penghu Town Governement to establish a caring base for juveniles and children, providing transportation VR experience such as crossing street, riding bicycle, carrying person on motorcycle, distracted driving, furious driving and red light running etc., to vividely simulate real-world scenes in virtue of VR technology to allow participants to experience the soul-stirling accident process, and feel for themselves the disastrous effects of traffic violation, turning didactic education to experimental education

【Promote Popularization of Science for Juveniles】

Companies of all levels have called on employees to donate blood voluntarily. Yang Bingqi, a 62-year-old employee of Fujian Posts Property Management Co., Ltd. under China Comservice had voluntarily donated blood for 64 times, with the total volume over 50,000 milliliter (including blood components). He was awarded golden prize of national voluntary blood donation for twice, bronze prize for once, and the outstanding contribution prize. Gao Shan, an employee of China Telecom Beijing Research Institute, had kept on donating blood (whole blood) once or twice every year for nearly 20 years, accumulatively donating nearly 5,000 milliliter whole blood in total, equivanlent to the whole body blood volume of an adult. He won the honorary title of Advanced Individual of Blood Donation of Beijing Municipality in 2013, and became a hematopoietic stem cell donation volunteer of China in 2015.

In November 2018, employees of Ji l in Branch, Ji l in Province actively participated in the voluntary blood donation activity

Voluntary blood donation certificates obtained by Gao Shan, an employee of China Telecom Beijing Research Institute

On the evening of April 20, 2018, a couple fell into the water near Caojiaqiao Bridge of Lidu Town of Jinxian County, Nanchang City, Jiangxi Province. At the critical moment, Xia Liming, an engineer of Lidu Sub-branch of Jinxian Branch who happened to conduct installation work nearby jumped into the water and saved them. Afterwards, the couple saved prensented a banner of gratitude to Xia Liming

On the evening of April 28, a fire broke out outside of Tieguanying Village of Qinhuangdao Economic and Technological Development Zone in Hebei Province. The fire spread very fast, endangering vil lagers’ gardens. 6 employees of the Broadband Center of Qinhuangdao Branch passing by detected the fire. Immediately they called 119, and strived to control the fire, winning time for fire rescue. Afterwards, Tieguanying Village presented a banner of gratitude to the 6 employees

【Brave Deeds】

56 57

CR

EATE A BETTER

LIFE W

ITH H

IGH

-QU

ALITY D

EVELOPM

ENT TO

GETH

ER


China Telecom serves its overseas customers through two subsidiaries - China Telecom Global Limited (China Telecom Global) and China Communications Services International Limited (China Comservice International), a wholly-owned subsidiary of China Communications Services Corporation Limited (China Comservice). These companies are dedicated to providing quality, efficient, comprehensive communications solutions and integrated information services for overseas customers, fulfilling their social responsibilities according to the actual conditions of relevant countries and regions.

Fulfill Overseas Responsibilities

Overseas Business and Services of China Telecom Global

China Telecom Global Limited provides Internet access and transit, broadband, unified communications, cloud computing, ICT, fixed and mobile voice and value-added services, professional and industrial solutions, telecom operation consulting and service outsourcing for international operators, MNEs and such public customers as overseas Chinese. By the end of 2018, China Telecom Global had had 42 branches (excluding Hong Kong headquarter, Macao company, Taiwan platform and Shenzhen representative office) in 37 countries and regions, 97 overseas PoPs, 46 OTN nodes, 52.4 Tbps outgoing international Internet bandwidth and inter-continental capacity, 40 in-service international and Hong Kong-Macao-Taiwan submarine cables, 14 international and Hong Kong-Macao-Taiwan land cables, and 61 cross-border land cable systems. With network nodes covering 63 cities across 37 countries and regions, a global layout of service outlets and network capacities has come into shape.

Overseas Business and Services of China Comservice

China Communications Services Limited has three product and service lines – “Telecommunications Infrastructure Service (TIS)”, “Business Process Outsourcing (BPO)” and “Application, Content and Others (ACO)” - which encompass disciplines including design, engineering, supervision, network maintenance, channel service, equipment management, ICT applications, value-added voice, value-added Internet services and some other services. By the end of 2018, China Communications Services had established operations in 33 countries and regions to target customers in Asia-Pacific, Middle East, Africa and Latin America with professional, integrated and differentiated communications construction services.

According to the needs of communications and ICT application development of countries and regions along the “Belt and Road”, China Telecom has carried out extensive cooperation to actively build communications and information infrastructure and promote network interconnection; actively provided such full industrial chain services as information and communications consulting, planning, construction and operation as well as information application services in some industries; and assisted in cultivating professional talents and promoted the development of ICT application.

China Telecom has made many breakthroughs in participation in the “Belt and Road” construction in 2018. It won the bidding and became the third full-service operator of the Philippines; the China-Pakistan and China-Nepal optical fiber cables have begun commercial operation; China Telecom Global set up representative offices in Denmark and Hungary respectively; registered branches in Cambodia, Spain and Switzerland respectively; opened five new overseas agencies, one new international submarine cable, one new cross-border land cable, and ten new overseas transmission nodes, and increased the backbone transmission relay in the direction of the “Belt and Road” by 3.7 Tbps to 21.7 Tbps. China Comservice International continued to advance the construction of communications infrastructure such as “Digital Mali” and “China-Africa Information Highway”.

Build the “Belt and Road”

Chronicle of CT’s Participation in the “Belt and Road” in 2018

January

July

October

November

December

China Telecom Global completed the testing of Urumchi-Rawalpindi Segment of China-Pakistan optical cable, and the Cable was officially launched for services, significantly enhancing the communications capability between the two countries

C h i n a C o m s e r v i c e I n t e r n a t i o n a l implemented ITC national broadband project of Saudi Arabia, with the plan of deploying a FTTH network capacity of 600,000 households to facilitate the improvement of information infrastructure capacity of Saudi Arabia

China Comservice International bid for Nepal’s NT4G network project, and actively participated in Nepal’s 4G network construction

The consortium consisting of China Telecom and a local partner won the bid and became the third full-service operator of the Philippines, facilitating the enhancement of communications services of the country

China Comservice International won the bid for the backbone network land and submarine cables project o f t h e R e p u b l i c o f t h e C o n g o , facilitating improvement of domestic optic-fiber communications network of the Republic of the Congo and enhancement of its communications capacity with neighbouring countries

58 59

CR

EATE A BETTER

LIFE W

ITH H

IGH

-QU

ALITY D

EVELOPM

ENT TO

GETH

ER


The China-Pakistan OFC Project is a good example of mutual beneficial

cooperation between China and Pakistan, a model for promoting joint

development of our region.

-Yao Jing, Chinese Ambassador to Pakistan The network provided by China Telcom South Africa Branch gave me the best Internet experience in Africa.

-Zhao Long, an engineer of the Technical Department of CRRC Zhuzhou, Johannesburg, South Africa

In 2018, China Comservice Global revised some systems such as provisions on management of business contracts and measures for the administration of project bidding to strengthen management of customer business opportunities and overseas projects, promote the normative development of overseas engineering projects and continuously enhance customer satisfaction.

With the launch of the optical fiber cable, the communications delay between Beijing and Islamabad would reduce by half, providing Pakistan with transmission and internet transit services connecting East Asia and the Europe, which would enhance the connectivity between the two countries and promote the development of digital economy of Pakistan.

China Telecom Global held the 3rd Global Service Sharing Conference on December 3-4, 2018 to enhance communication and collaboration on customer service. The company established iSLA (whole-department service commitment system) service program to push ahead the cross-sector efficient communications and cooperation, and promote the enhancement of customer awareness and operational efficiency.

Serve Overseas Customers

With the economic and trade develppment between China and South Africa, CRRC Zhuzhou Electric Locomotive Co., Ltd. (“CRRC Zhuzhou” for short), one of the subsidiaries of CRRC has been providing electric locomotive products and services for South Africa in recent years. Considering the shortage of communcations resources of South Africa, China Telecom South Africa Branch took the initiative to contact CRRC Zhuzhou, and worked out a tailor-made solution to satisfy its communications requirements in South Africa, providing a 50Mbps high-speed interconnected network to meet the demands of office network (especially routing back to China), reduce network delay and enhance the experience of access to office applications of various kinds.

【Serve CRRC Zhuzhou】

Since 2018, China Telecom Global has carried out special work to improve and upgrade the communications and information services for overseas embassies and consulates of China. The customer service staff and technical staff visited overseas embassies and consulates to understand their specific requirements in depth, so as to provide customized solutions for each embassy and consulate, help them solve block points such as slow access to Chinese websites, shortage of Chinese video contents, and facilitate the implementation of foreign affairs activities. By the end of 2018, China Telecom Global had provided comprehensive information services for 45 overseas embassies and consulates across Europe, America, Asia and Africa.

【Serve Overseas Embassies and Consulates of China】

Indicator Unit 2016 2017 2018

Timeliness to handle trouble reported by global customers

% 98.2 98.3 98.8

Global customer satisfaction % 91.0 90.1 90.4

Customer recommendation % —— 77.5 83.2

Key Customer Service Indicators of China Telecom Global

In June 2018, the customer service team of China Telecom won the “World’s Best Support Service (Communications)”, “Best Integrated Support Team (Communications)” and “Best Customer Service Center (Communications)” in 2017 CRE Awards from Asia Pacific Customer Service Association

On September 10, 2018, China Telecom won the Excellence Award from ITU for its innovative ICT solution presentation method in ITU Telecom World 2018

On Spetember 12, 2018, with the completion of the testing of Chongming (China)-Hil lsboro, Oregon (U.S.A.) Segment of New Cross Pacif ic Cable Network (NCP submarine cable) launched by China Telecom together with other Asian operators, the NCP submarine cable was put into service. It would increase Asia-Pacfic broadband capacity by nearly 14Tbps, which would greatly enhance the interconnection capacity of China in Asia-Pacific Region, so as to provide direct communications services with big broadband, high speed, good quality and stability for both China and the US, and better satisfy customers’ increasing demands for communications services.

【Extend Cross-Pacific Direct Communications Service】

Sketch Map of NCP Submarine Cable

On July 13, 2018, Deng Xiaofeng (Right), General Manager of China Telecom International Co., Ltd. exchanged cooperation MoU with the Pakistani representative during the Inauguration Ceremony for the PAK-China Optical Fiber Cable Project

China-Pakistan Direct Access Optical Fiber Land Cable is a key interconnection project along the “Belt and Road”. It starts from Urumqi, and across the Khunjerab port nearby China-Pakistan border to the city of Rawalpindi, Pakistan, with a total length of 2,950 kilometers. The cable across the Karakoram Mountains, Hindu Kush Mountains, Pamirs Plateau, and the Himalayas, with complex geological terrain, chillness and oxygen shortage. The project teams of both China and Pakistan had to overcome mountains of difficulties to carry out project construction. The testing of Urumchi-Rawalpindi Segment of the Cable was completed in July 2018, and the Cable was officially launched for services.

【Opening of PAK-China Optical Fiber Cable】

60 61

CR

EATE A BETTER

LIFE W

ITH H

IGH

-QU

ALITY D

EVELOPM

ENT TO

GETH

ER


All employees on the training scene said they had learnt a lot, and also felt the Company’s standardized management and care for employees.

-Zhu Chuanfu, part-time safety officer of China Comservice International Pakistan

On November 2-3, China Comservice International Ethiopia organized a communication devices knowledge training for its employees, inviting an expert to explain the operating principles, operating mechanism and practical configuration of routers and other devices, helping staff enhance professional skills and business efficiency.

Helping those who need help makes society better and employees more

assured.

-Octavia Maharani, an employee of China Comservice International Indonesia

With the development of overseas business, more and more foreign employees have joined China Telecom Global and its branches. China Telecom Global has paid attention to multi-cultural exchanges, helped foreign employees integrate into the Company, and given full play to their advantages of being familiar with local market environment to promote the efficient implementation of business and services in compliance with local regulations.

【Foreign Employees of China Telecom】

China Telecom has adhered to the localization employment policy and people-oriented principle, safeguarded the rights and interests of overseas employees in accordance with the law, focused on building harmonious labor relations, created a healthy corporate culture, and continuously improved employees’ satisfaction with working environment. We have reinforced the management of work safety overseas and made efforts to protect the safety of employees. We have actively integrated into local communities, communicated with local people and carried out activities for public benefit, and contributed to local socio-economic growth. By 2018, China Telecom Global had had 566 non-Chinese mainland employees, and China Comservice International had had 2,400. China Telecom Global was honored with Internationalization Practice Pioneer Award for Chinese Enterprises presented by China Going Global Thinktank (CGGT) and China Center for International Economic Exchanges (CCIEE).

Contribution to Social Development

On the afternoon of September 30, 2018, China Comservice International Indonesia donated food, water and other relief materials to Indonesian Red Cross Society

Employees of China Comservice International Ethiopia were participating in the communications devices knowledge training

On September 28, 2018, Palu, a city in Central Sulawesi Province, Indonesia, was hit by a 7.4-magnitude earthquake which then triggered a tsunami with waves up to 1.5-2 metres high in waters near the epicenter. The earthquake and tsunami struck Talise, Donggala and other beaches in Palu, causing thousands of casualties. China Comservice International Indonesia offered to conduct humanitarian relief operations.

【Take Part in Tsunami Relief】

China Comservice International requires all its overseas branches to reinforce safety education and training for their staff. On October 19, 2018, China Comservice International Pakistan carried out safety education and training on the construction site of UPR project in the Kashmir Region, northern Pakistan.

【Training for Staff Working Overseas】

Joyce is a Kenyan with a postgraduate ceritificate in laws. She joined China Telecom Kenya Branch in 2016. As a legal specialist, she is responsible for communicating with local government and authorities. She is studying a communication technology-related course with the support from the Company, in a bid to improve ICT-related legal consulting and better support the business development of China Telecom in Africa. She is expected to obtain a post-graduate certificate in ICT in 2019.

As a practitioner in communications industry, I am very happy to be able to develop my career on the platform of China Telecom, and very proud to be involved in

the process of advancing the Eurasian interconnection, making the unimpeded access to information more easier around the world.

-Moti Khan, an employee of China Telecom Europe Branch

Moti Khan is a British, and he has been working in the telecom industry since he graduated from university. He joined the London Office of China Telecom Europe Branch in 2010. With rich experience in telecom, Moti has vigrously helped customers solve many busienss and services problems since joining the Company, and he has also grown to be a versatile communciation technical talent. Now, he is leading a team to provide comprehensive communications solutions covering international lines and cloud services and a full package of technical support and guarantee services for European enterprises seeking development in Asia-Pacific Region.

Roxane Hagege is a French who studied in China and worked in Beijing for two years. She joined China Telecom France Branch in 2015. Started as a sales specialist at the basic level, she is now a business manager responsible for communication with French MNSs to expand China Telecom’s business in Europe and Asia.

During the training, the trainers gave very professional answers to our

questions, improving our understanding of configuration of different devices.

-Surafel Simachew, a network engineer of China Comservice International

Ethiopia

Five items/aspects that should be checked before operation

• shift records• operation instructions• tools and devices• operating environment• personal protective devices

Examples of Training Contents

Five questions that should be asked before operation

• Why should we do this?• Does it have any risks? • What procedures should we

follow?• What protective measures should

we adopt?• And what help do we need?

Five actions that should be taken proactively after operation

• obtaining safety information• passing on safety information• recording safety situation• reporting abnormalities• making safety recommendations

62 63

ENH

AN

CE VITA

LITY A

ND

C

APA

BILITY

FOR

HIG

H-

QU

ALITY

DEVELO

PM

ENT


Enterprises are the main force for achieving high-quality development. China Telecom has deepened corporate reform, kept enhancing its vitality and capability, improved its efficiency and effectiveness, endeavors to play the role of a central enterprise as a pillar in high-quality development, and strives to be a competitive world-leading enterprise.

62

ENHANCE VITALITY AND CAPABILITY FOR HIGH-QUALITY DEVELOPMENT

China Telecom has earnestly implemented the decisions and deployment made by the CPC Central Committee and the State Council on deepening the reform of state-owned enterprises, and made efforts on multiple fronts to advance reform and innovation, and to bring new vigor and vitality into high-quality development.

Deepen Corporate Reform

In 2018, China Telecom continued to deepen its three-dimensional inter-driven reform through “segment contracting, professional operation and inverted pyramid support”, to push forward its transformation from the hierarchical pyramid structure of traditional large enterprises to flexible network structure of “big platform + small teams”, forming a new mode and mechanism with stronger vitality, faster market response speed and higher efficiency.

63

2

31

China Telecom Group has begun internal segment contracting reform since 2012. It has realized during the reform that, to support the segment contracting reform, transformation in a larger scale is essential. Therefore, it set out to pool resources of management departments to promote flat management and professional services, forming an institutional framework featuring “front-line units serve customers and departments serve the front-line units”...The enterprise has leveraged Internet to create a powerful integrated service platform and set up the inverted pyramid support system to underpin the provision of customized services for massive front-line units, forming a new operation featuring “big platform + massive front-line units”.

-From Promote Management Reform of Large SOEs by “Internet+” from the Perspective of Segment Contracting Reform of China Telecom, an investigation and research report by the Development Research Center of the State Council, on February 23,

2018

Proceed with Three-Dimensional Inter-Driven Reform

Deepen corporate reform

Promote smart operation

Strictly perform legal compliance

ENH

AN

CE VITA

LITY A

ND

C

APA

BILITY

FOR

HIG

H-

QU

ALITY

DEVELO

PM

ENT

64 65

ENH

AN

CE VITA

LITY A

ND

C

APA

BILITY

FOR

HIG

H-

QU

ALITY

DEVELO

PM

ENT


In 2018, Rizhao Branch, Shandong Province pushed ahead the extension of segment contrating to the grid marketing areas; encouraged employees to start businesses, leading to the opening of 94 new outlets by 92 entrepreneurs. It motivated mid-level management staff and staff of functional departments to go down to grassroots and front-line contracting units, with the share of front-line employees increased by 10% compared with that of the previous year. Small CEOs were authorized to carry out independent recruitment, assessment and distribution and resource control, and the remunerations of small CEOs were closely related to the completion of targets set by the contractors, so as to increase incentives. By 2018, the number of segment contracting units reached 200, contributing to a 6% increase in business revenue compared with that of the previous year.

In 2018, Changde Branch, Hunan Province optimized the setting of contractors based on changes of markets, improved contractors’ excess revenues sharing mechanism, strengthened support to contractors, and furthered the segment contracting reform. At the Jiuxi Town Sub-branch, Taoyuan County, the cooperative consciousness and the cohesion of the team has been boosted. With the help of the superior professional team, the business skills of both small CEO and the team members have rapidly enhanced. Supported by the small CEO assistant APP, they effectively implemented fine services and carried out marketing campaigns such as benefiting farming by information, smart family etc. to deeply tap the potential of the rural market, achieving good results. The business revenue in 2018 was RMB5.28 million, a 35% increase over previous year, and Yu Shanshan, the small CEO, was awarded “Best Small CEO of the Year” of the Group Company and Provincial Branch.

【Deepen Segment Contracting Reform】

Anhui Branch has continuously strengthened its inverted pyramid support, clarified the six new roles of comprehensive support center as intelligence and information center, knowledge and operation center, comprehensive assessment center, supervision and dispatch center, process control center and intensive control center, and escalated smart level through software. It has promoted “piecework system for work order taking” in the inverted pyramid service center, giving awards to experts of support department based on the number of problems they solved for the front-line units and the feedbacks from front-line units, so as to encourage the experts to take the initiative to solve practical problems. In 2018, the human support service volume was down by 30%, order handling time was reduced by 50%, both the timeliness of five-minute response and same-day case conclusion reached 98%, and the satisfaction rate of internal customers got 99 points.

【Advance Inverted Pyramid Support】

On April 23, 2018, an employee of comprehensive support center of Hefei Branch, Anhui Province rapidly presented bills for a small CEO of business department

In the past, I didn’t know whom to turn to when problems occurred; now, with Yizhicheng (easy support) that could dispatch orders, and the support hotline, plus

corporate visits every month, I have no worries.

-Fan Xiao, small CEO of Rural Business Department of Kaicheng, Wuhu Branch, Anhui Province

The segment contracting mechanism has provided us with a big arena for

talent display. We grow and share development with the Company.

-Yu Shanshan, small CEO of Jiuxi Town Sub-branch, Taoyuan County,

Changde City, Hunan Province

In 2018, Jiangdu Branch in Yangzhou, Jiangsu Province intensified “one-click response” mechanism, realtime management, control and feedback of work orders, as well as reverse evaluation, and adopted multiple measures in parallel to boost the response efficiency of inverted pyramid support. The inverted pyramid support system of customer response dispatch center received 881 work orders all year round, with a response completion rate of 97.7%, further improving services at grassroots and contributing to the completion of the revenue growth target.

The Hangzhou 10000 center, Zhejiang Province has carried out “Center-Business Unit-Team” three-level contracting in line with the principle of consistency of responsibility, right, profit and performance. All business units have put heads together, and strived to reach the goal of “subscribers only need to dial once at most”. In 2018, the customer unsatisfaction rate for high-skill special team undertaking complicated traffic issues stablized at 0.6% for six months, 0.4% lower than the previous period, and the service quality was further enhanced

Areas Actions Results

Segment Contracting

· Optimized the configuration of contractors, and enhanced the efficiency of contractors through fission and integration

· Deepened the competitive selection of contractors (small CEOs) and two-way selection of teams to strengthen the incentives of career development

· Optimized incentive mechanism, promoted target subscription and de-KPI

· 58,000 contractors were optimized according to market changes

· Promotion or demotion of small CEOs, recruitment or decruitment of team members, increase or decrease of contracting earnings based on standardized and contractual management

· 498 Best Small CEOs were commended by the Group Company

Professional Operation

· Promoted professional operation experience in the areas of business circles, townships, campuses, and business customers to establish a multi-level professional support team

· Reinforced the interest linkage mechanism between professional operation team and grassroots contractors to facilitate the enhancement of support service level

· Professional directors made full use of their roles as coaches to facilitate small CEOs and front-line employees, so that they could and would do their jobs well

· The strategies and product adaptation for grassroots business units marketing became more precise and professional

Inverted Pyramid Support

· Promoted mobile internet-based inverted pyramid support tool “Yiwen (Easy Ask)” in an all-round manner

· Established a big comprehensive support platform for grassroots and front lines with full functions, easy use and accurate data; developed small CEO assistant APP

· Strengthened financial inverted pyramid support service for front-line business units

· “Yiwen” was promoted to 22 provincial branches and three professional companies, with more than 220,000 access personnels. The 5-minute response rate reached 98%, and the mode featuring “sending orders at grassroots level, competing for orders at background, expert support without geographical limits, and making it easy for employees to do their jobs”

· The Small CEO assistant APP was put into use in four provincial branches

· The time required for the submission of expense accounts by small CEOs was reduced to 2.1 working days on average, 1.4 days less than that of the previous year

Progress and Results of Three-Dimensional Inter-Driven Reform in 2018

New mode and mechanism of enterprise operation

· Front-line employees want to do, can do and do their jobs easily

· Grassroots serve customers and departments serve the grassroots

· Market-based incentives, closely related to performance

· Expand coverage downwards, upwards and horizontally

· Professional operation, a dedicated person for particular assignment

· Build community of interests with front-line units

· Relying on platform for efficient support

· Big data intelligence

Segment contracting (front-line)

Professional operation

(professional bodies)

Inverted pyramid support

(functional departments)

Internet + Market-Based Reform

Professional coach

empowering front-line

Front-line’s reverse evaluation

of support effectiveness

Integration of resources to enhance support

capability

China Telecom’s Three-Dimensional Inter-Driven Reform

66 67

ENH

AN

CE VITA

LITY A

ND

C

APA

BILITY

FOR

HIG

H-

QU

ALITY

DEVELO

PM

ENT


Drawing on the innovation laws of “Internet+” and “smart+” products, China Telecom set up new Competence Centers or professional companies specializing in cloud computing, DICT application, Internet of Things, intelligent home and so on in 2018, in a bid to enhance product innovation compacity and better serve customers of all professions and trades with new positioning, new mechanism and new models.

Reform of Product Innovation

Area Measure Relevance

Organization of scientific research

· Strengthened the planning, coordination and management of scientific research relying on the Science and Technology Innovation Committee and the Department of Science and Technology Innovation, highlighting the innovation of core competence and proprietary controllable core technologies

· Established China Telecom Research Institute, under which there are several professional research institutes including those on strategy and innovation, network and information security, smart network and terminals

· Based on testing laboratories such as the “National Mobile Internet System and Application Security Engineering Laboratory”, the “Network Restructuring Open Lab”, the “5G Joint Open Lab”, the “IoT Open Lab”, the “Industry Cloud Open Lab” and other laboratories to actively participate in major national science and technology projects and key research and development plans

· Integrated resources for scientific research and development, divided labors and collaborated to create synergy, and strengthened research on forward-looking and basic technology as well as prototype innovation

Incentives for scientific research

· Established independent research and development support and technology achievements transforming system

· Adopted R&D project responsibility system and special zone system, and special zone project had flexibility in personnel allocation, introducing marketized compensation and evaluation systems

· Kept R&D staff’s career development channels unimpeded, and chief experts have been given the power of independently choosing personnel and using resources, realizing the consistency of responsibility and right

· Formed an R&D incentive mechanism that complies with scientific rules and market principles to encourage talents to give their roles into full play

Reform of the Technological Innovation System in 2018

Reform Actions of Product Innovation System in 2018

Area Measure Objective

Cloud Computing

· Integrated cloud computing and IT R&D resources to form a new cloud computing company (Cloud Competence Center) specializing in the research, development and operation of cloud products and cloud flatform

· Implemented talent special zone policy, innovated mechanisms in terms of the selection and management of project managers, team building, talent exchange, assessment, incentive and service, and adopted market incentives

· To establish a uniform, intensive and independently controlled cloud platform for the entire Group by resource integration and capacity enhancement, so as to effectively support cloud computing business and services

DICT Application

· Integrated system integration resources and set up DICT application competence center specializing in the capacity building of software application services and coordinating the R&D, operation, support and cooperation of DICT application products

· Integrated industrial application bases covering government, education, health, transportation and logistics that were previously separated across provincial branches into a DICT application production operation center to strengthen the support of sales services

· To strengthen the overall management of DICT application products, as well as capacity building and ecological cooperation in terms of research, development and operation

IoT

· Established E-surfing Logistics Science and Technology Co., Ltd. (IoT Competence Center) specializing in the provision of IoT solutions, platform support capacity and service capacity, and developed related standards

· Established IoT open platform and IoT business operation lab to promote the development of E-surfing IoT industrial alliance

· Based on corporatized main body to enhance the capacity of IoT products and operation, and strengthen ecological cooperation

Smart Home

· Established Smart Home Science and Technology Co., Ltd. (Intelligent Home Competence Center) specializing in the R&D and operation of Smart Home business

· Integrated E-surfing gateway, smart networking, IPTV, Smart Home and other business, comprehensively pushed ahead ecological cooperation and operation of the industrial alliance

· Based on corporatized main body to strengthen marketized operation, enhance the product capacity and operation capability of Smart Home, and strengthen ecological cooperation

Smart Logistics

· Established Tianyi Zhilian Science and Technology Co., Ltd. (and China Telecom Intelligent Logistics Application Capability Center) jointly with Transfar Zhilian Co., Ltd. – a subsidiary of Transfar Group to provide smart supply chain solutions, telematics, Internet of goods, smart logistics park and other products, and was included into DICT application competence system

· To join hands with dominate enterprises in the field of industrial logistics to enhance smart logistics’ product capacity and operation capacity

China Telecom has implemented innovation-driven development strategy, conducted reform of the technological innovation system and the product innovation system, integrated innovation resources, intensified innovation coordination and collaboration, and strived to boost innovation capability.

Promote Reform of Innovation System

In 2018, following scientific development trends, China Telecom aimed to create core competitiveness with proprietary intellectual property rights, optimize technological research and development system of the company and integrate R&D strength to improve the capabilities of R&D for key technologies and applications such as 5G, next-generation Internet, cloud computing, big data, IoT, and AI.

Reform of Technological Innovation System

Major Achievements in Science and Technology Innovation in 2018

Standards developed

Patents applied for

Standards developed under CT’s presiding

Software copyrights registered

International standards developed when CT acted as the leader or co-leader

Patent authorizations obtained

Industrial standards developed under CT’s presiding or with

its participation

Provincial and ministerial level awards

obtained

CERTIFICATE

68 69

ENH

AN

CE VITA

LITY A

ND

C

APA

BILITY

FOR

HIG

H-

QU

ALITY

DEVELO

PM

ENT


China Telecom has actively introduced intelligent technologies to operation, innovated operation methods and models, and strives to achieve lean operation, accurate management, precise marketing and fine service to improve development quality.

Promote Smart Operation

In 2018, China Telecom further advanced the construction of data platforms and enhanced data operation capability to support agile development and operation.

Build Strong Data Platform

In 2018, China Telecom leveraged big data and other technologies to continuously improve marketing service and operation management.

Intelligent Operation Management

Actions and Effects of Enhancing Data Operation Capacity in 2018

Areas Main Measures Main Progresses and Effects

Construction of Big Data Platform

· Introduced big data lake to make data middle desk stronger

· Remarkably expanded the size of the platform, and completed gathering of IT core data, network data and business platform data

· Built the “edge computing + distributed storage” pre-processing architecture as a pilot project. The efficiency of data transmission and services improved significantly. It is expected to save 70% of bandwidth and storage resources

· Built special data zones for provincial branches as a pilot project to provide one-stop data capacity including agile data development, application sharing and efficient operation

Opening of Digital Capacity

· Built an enterprise-level digital capacity opening platform (DCOOS)

· Gathered more than 5,000 internal and external capacity resources to support business cooperation of various kinds

Enhancement of Data Operation Capability

· Optimized the operation and organization of big data platform in the way of production line

· Further standardized data production and capability open operation, promoting the formation of a closed loop by construction operation

· Conducted list-based management of various production factors of big data system through production management ledger to guarantee the accurate delivery of expenditure presentation of data production

Area Main Measure Main Progress and Effect

Precise marketing· Used big data mining to empower marketing scheming,

channel management and customer experience, and enhanced market operation support capacity

· 1,100 big data marketing service models are in use, covering more than 80% marketing users

Fine service

· Used intelligent customer service robots to provide 7*24 consulting, enquiry and handling services

· Applied speech recognition technology to simplify the keypress levels of 10000 customer service hotline

· Leveraged big data pre-judging and prediction to make service portrait, so as to enhance the efficiency of solving difficult issues

· Share of intelligent voice service reached 30%, and the first call resolution rate reached 80%

· Customer service hotline 10000 achieved instant answer mechanism to address the problem of multiple interactions

Lean network operation

· Established the all-in-one system integrating wireless construction, maintenance and optimization, built applications such as regional optimization of differentiated network qualities, and used big data analysis for accurate capacity enlargement

· Accurately enlarged 53,000 base stations in zones with intensive data flows and call traffic, effectively enhancing network coverage quality

Accurate management

· Built management portraits and decision-making models focusing around key management activities of personnel, finance and materials, boosting the sharing of application

· Focused on key businesses and asset value management, built pre-warning capacity for the prevention and control of financial risks, and implemented value assessment and abnormal work order dispatch application

· Built 153 management portraits and decision-making models, and realized sharing of 185 decision-making models

· Smart HR system was promoted in 30 provincial branches

· Dispatched base station with zero traffic, abnormal electricity charges and other abonormal lists to push ahead rectification

· Opened a leader window to provide convenient data information services

【Intelligent Patrol by Drones】

To deal with the practical operation difficulties in optimizing base stations in mountainous areas, Guangxi Branch innovatively carried out intelligent patrol by drones in 2018, which sifted problematic areas using the big data platform and software, and then employed drones to carry out antenna feeder parameters verification, coverage scenario reconnaissance, base station environment reconnaissance, microwave relay survey, downlink interference analysis, antenna feeder ad justment gu idance and other work to enhance the convenience, safety and accuracy of network optimization work, and effectively save time and costs. Taking the network optimization of Lushan Campus of Guangxi University of Science and Technology for example, it only took 2.5 days to complete the task, a great drop of time versus 15 days using traditional method.

On November 2, 2018, technical staff of Guangxi Branch were discussing the plan of using “cloud platform + drones” to implement wireless network optimization

Main Effects of Enhancement of Data Operation Capability in 2018

Invoked big data capacity for

The number of open APIs of big data platform increased to

TB

Daily data volume increased to

billion times

"DUJPOT�BOE�"DIJFWFNFOUT�PG�*NQSPWJOH�.BSLFUJOH�4FSWJDF�BOE�*OUFMMJHFOU�0QFSBUJPO�.BOBHFNFOU�JO��

+

70 71

ENH

AN

CE VITA

LITY A

ND

C

APA

BILITY

FOR

HIG

H-

QU

ALITY

DEVELO

PM

ENT


Beijing Branch introduced intelligent voice navigation to the 10000 customer hotline in May, 2018. Users could speak out their requests directly when dialing the hotline, and the system would immediately transfer the voice into texts, and locate them to specific business and operation by text recognition, so as to provide one-stop convenient services including business information inquiry, business handling and business consulting.

【Intelligent Customer Service with High Efficiency】

Schematic Diagram of E-surfing Lanying (Blue Eagle) SystemSchematic Diagram of Intelligent Voice Navigation of 10000 Service Hotline

In 2018, China Telecon leveraged AI and big data technologies to further advance smart service with the aim to satisfy customers’ increasingly individualized service needs.

Intelligent Customer Service

Main Actions and Achievements in Promoting Intelligent Customer Service in 2018

Area Main Measure Main Progress and Achievement

Intelligent 10000 hotline service

· Furthered AI operation and increased the use of AI interaction services

· Developed and promoted intelligent service tools such as service pre-judgment, smart bills and one-click diagnosis, to improve the handling efficiency of complex issues

· The use of intelligent interactive services increased by twice compared with that at the beginning of the year

· The time required for intelligent pre-judgment tool to facilitate fault-handling calls reduced by 5%

· Smart bills, one-click diagnosis and other smart tools could rapidly handle problems such as clearing up subscribers’ doubts about charges, network use etc., with FCR reaching 80%

Online intelligent service

· Enhanced 46 service capacities including online mobile services data package overlaying, change of packages, bill and receipt issues, as well as other 14 service capacities including new installation and renewal of broadband services

· Integrated customer service robots, video and other capacities to launch smart “my customer service” zone

· Over 90% mobile services and 80% of broadband services have been able to be accessed online

· Online service live videos attracted 11.65 million viewers, and customer service robots have served 480 million users

· New media customer service has been used for 2.71 billion times

Intelligent service quality control

· Advanced end-to-end monitoring of customer service and furthered end-to-end operation of customer service

· Further refined management and control of customer service, enabling the improvement of 60% indicators

Yunnan Branch took one-click broadband fault diagnosis as the breakthrough point and carried out two micro innovation, namely “repair broadband faults under the help of mobile phone” and “strong correlation for not-that-strong system”, realizing “1 (one-click broadband fault diagnosis) +2 (customer information correlation function and repair broadband faults under the help of mobile phone)” model to leverage the correlation between customer phone numbers and corresponding telecom devices to rapidly check the matching, broadband fault locating by one click and rapid troubleshooting to further improve repair services for broadband faults.

After the introduction of “customer self-service + customer service robots” by Guangdong Branch, more than 80% questions asked by its customers could be answered in this way; since July 2018, through pushing by artificial intelligence and other means, the reply speed of customer services has increased by more than 70%.

Intelligent customer service system could effectively solve the problems of service front desk and significantly reduce customer’s waiting time. It is

very well received by customers.

-Zou Jieling, from the Eighth Service Hall on Zhongshan Road of Guangzhou Branch in Liwan District, Guangzhou

【Rapid Broadband Debugging】

Anhui Branch enhanced the intelligent level in multiple links of broadband debugging.

To deal with the problems such as multiple systems, high costs, low efficiency and incomprehensive analysis in the process of wireless network optimization, Guangdong Branch built the 4G network intelligent assessment system “E-surfing Lanying (Blue Eagle)”, which features four models (e.g. regional estimation), eight functions (e.g. complaint assessment), with the abilities of monitoring more than 500 indicators, 14 assessment scenarios and one-stop intelligent assessment of mobile network quality, contributing to the 4% enhancement of 4G network coverage rate in the province in 2018 and effective improvement of user awareness.

【E-surfing Lanying (Blue Eagle)】

· Established standardized models for fault scenario services, realized intelligent check-up of work order quality, and reduced the service delay caused by work order quality issues

· Enriched broadband fault pretreatment methods, realizing the online video-based interaction between customers and installation/maintenance engineers for the accurate and rapid troubleshooting

· Optimized the smart diagnosis system for 10000 service hotline and enhanced 13 diagnosis functions to help customer service staff rapidly deal with faults

· Put into use automatic troubleshooting functions such as backup and recovery, one-click clearance, and “TV screen + QR code”, to make it easier for users to use

Users make calls Directly guide user to solutions by recognizing the requests made by the caller

72 73

ENH

AN

CE VITA

LITY A

ND

C

APA

BILITY

FOR

HIG

H-

QU

ALITY

DEVELO

PM

ENT


China Telecom has adhered to integrity operation, complied with laws and regulations, and continuously strengthened audit supervision, Party discipline and anti-corruption construction and responsibility management, to guarantee the high-quality development of the enterprise.

Strictly Perform Legal ComplianceChina Telecom has been earnestly implementing the responsibility of strengthening Party discipline, enhancing supervision, discipline and

accountability and made remarkable achievements in the Party conduct construction and anti-corruption campaign.

Ensure Party Discipline and Anti-Corruption

China Telecom earnestly implements the requirements of the CPC Central Committee, the State Council, ministries and commissions for enterprises to fulfill their social responsibilities, and continuously integrates social responsibilities into the development strategy, the daily production, operation and management of the Company, and actively fulfills social responsibilities. In 2018, China Telecom elected and commended 32 excellent CSR cases, and the cases “Strive to Develop Internet of Things together with Its Applications, and Share Smart Life with All Things Connected” and “Promote Communications Connectivity by China-Pakistan Direct Access Optical Fiber Land Cable” were selected into the Central Enterprises’ Corporate Social Responsibility Blue Book (2018) and the Central Enterprises’ Overseas Corporate Social Responsibility Blue Book (2018) both released by the State-owned Assets Supervision and Administration Commission of the State Council.

The Company continues to improve communication with the government, investors, customers, employees, industries, communities and other stakeholders, and updates social responsibility fulfillment information through its official website, official WeChat account and other channels. The year 2018 is the eighth year of China Telecom publishing its CSR report in Chinese and English in a row. The Company also publishes a simple version of the CSR Report, which is easy to read on mobile terminals. The CSR Report is rated five star -- the highest rate – again by the Expert Committee for the Rating of CSR of Chinese Enterprises, and this is the seventh consecutive year. We were also awarded “Excellent Enterprise for Sustainable Information Disclosure” by the Social Responsibility Specialized Committee of Chinese Institute of Business Administration and Beijing Rongzhi Corporate Social Responsibility Institute in 2018. We continued to implement closed-loop management of the CSR report by collecting 183 questionnaires from readers on the CSR report, and analyzing readers’ opinions, expectations and suggestions on China Telecom’s CSR report and fulfillment of social responsibilities, in order to improve the CSR report and promote our efforts on social responsibility in 2019.

In accordance with Appendix 27 of the Listing Rules issued by the Hong Kong Stock Exchange (Environmental, Social and Governance Reporting Guide), China Telecom Co., Ltd. and China Communications Services Co., Ltd., which are listed in Hong Kong, disclosed their ESG (Environmental, Social and Governance) Reports in 2018.

Reinforce Responsibility Management

China Telecom has implemented the strategic deployment of the CPC Central Committee on law-based governance of the country in an all-round manner, put into practice the SASAC’s requirements on the construction of central enterprises with rule of law, pushed ahead the earnest implementation and promotion of responsibilities of the first responsible person on legal construction by principals of enterprises at all levels, continuously furthered corporate legal construction, and advanced the honest and lawful operation and standardized management. In 2018, with the combination of changes in business operation and other aspects, China Telecom continued to improve institutional system in terms of the internal control construction, audit supervision, prevention of corruption and comprehensive risk management. We followed the rule of faithfulness and performed contracts strictly; normalized corporate information disclosure, and received government regulation and social supervision consciously.

Advance the Management of the Enterprise by Law

In October 2018, Hubei Branch was awarded “Enterpr ises with Good Contract Spir i t and Credit in Hubei Province for 2016-2017” by Hubei Provincial Administration for Industry and Commerce

China Telecom strives to implement the requirements of cyber strength building strategy of the CPC Central Committee and the State Council, and accelerated infrastructure construction of information network. We actively implemented the requirements of “speed up and fees down”, and further lowered the tariffs; carried out rectification of unhealthy trade practices in depth; implemented “Special Campaign for the Enhancement of Network Quality and Service Level”; conscientiously put into practice relevant requirements for preventing and cracking down on telecommunications fraud, and earnestly guaranteed network information security. We actively maintained the telecom market operation order, and coordinated with regulatory authorities to carry out special campaigns against violations in the telecommunications market; and proactively proceeded with the expansion of interconnected bandwidth among operators to enhance the quality of Internet communications.

Comply with Industrial Regulation

China Telecom consciously implemented the new requirements on internal audit work of the CPC Central Committee and the State Council, reinforced the supervision and examination of the implementation of major national policies and measures and the deployment of decisions made by the Group, made the full coverage of audit supervision, deeply advanced auditing towards “intensification, informatization and standardization” construction, conducted auditing rigorously, reinforced rectification and effectively controlled risks to support and guarantee the high-quality development of the Company.

Strengthen Audit Supervision

Legal Compliance Training

Indicator Unit 2016 2017 2018

Number of training sessions

Number of sessions

8,526 7,779 8,273

Persons attending training sessions

Person-time 430,680 497,911 506,876

Effects of Party Discipline and Anti-Corruption Awareness Construction in 2018

Indicator Unit 2017 2018

Number of anti-corruption campaignsN u m b e r o f sessions

11,478 20,242

People attending anti-corruption campaigns and trainings

Person-time 598,778 782,658

· Implemented the rectification demands made by the central inspection team, and consciously investigated and dealt with unsettled problems transferred by the central inspection team; and established an improved inspection working mechanism. The Leading Party Group of the Group Company inspected the Leading Party Groups of 9 secondary units. Inspection work has also been carried out by 31 provincial branches and China Comservice

· Maintained tough stance on anti-corruption to effectively cut stock amount and curb increments; strictly standardized governing reviews and accurately applied the “four forms” of supervision and review; and seriously punished corruption happened among the masses

· Strictly executed the spirit of the Eight-Point Regulation of the CPC Central Committee, intensively took tough actions against the practice of formalities for formalities’ sake and bureaucratism, and strengthened the construction and supervision of work styles in the area of poverty alleviation

· Carried out integrity and discipline education of various kinds, gave into play the role of official account of “Clean Telecom”, and integrated constitution, rules and discipline of the Party into daily education

· Furthered the reform of the discipline inspection and supervision system. The Discipline Inspection and Supervision Team fully performed its duties granted by Party Constitution and the Constitution, took on the national supervision responsibility earnestly based on authorizations, strengthened dual leadership and abilities to perform its duties, consolidated basic management, strictly carried out self-inspection and continuously enhanced the supervision on capacity to perform duties

· Expanded auditing coverage, strengthened the audit supervision of key units in key fields, reinforced the rectification of problems identified in auditing, carried out 350,000 audit projects throughout the year, put forward more than 5,300 management proposals, and promoted development of more than 1,800 systems

· Established the system of reporting significant auditing issues to leading Party groups (Party committees), optimized the coordinated risk prevention and control mechanism, and set up an accountability system and working mechanism for illegal business operation practices and investment

· Properly cooperated with state audit and spared no effort in carrying out rectification


Helping the poor and poor areas to get rid of poverty is an important component of high-quality development. With a high sense of responsibility and awareness of assumption of responsibility, China Telecom has thoroughly fulfilled the requirements of poverty alleviation work, actively invested in resources such as talents, capital, and technology to fully assist in poverty alleviation.

In 2018, the Group Company set up a Leading Group on Poverty Alleviation headed by both Chairman and President of China Telecom to strengthen the planning and coordinating of poverty alleviation work, and established a cooperation and interaction working mechanism and responsibility system interconnecting the Group Company, provincial, prefectural and county branches, and poverty alleviation points. A work framework of “Great Poverty Alleviation” centering on six aspects, namely network, ICT application, industrial development, employment, intelligence development and public benefit, has taken shape.

Undertake the Important Task of Poverty Alleviation

On August 3, 2018, the Group Company held a conference on advancing poverty alleviation and made arrangements for the implementation of “poverty alleviation through six approaches”

On October 22, 2018, during the conference on advancing poverty alleviation, Ke Ruiwen (the first one on the right), the then President of the Group Company, was consulting Yang Zhimei (the first one on the left), a cadre assigned to aid Tibet and Deputy County Head of Banbar County, Tibet about the difficulties in production and sales of local agricultural and sideline productsActivities and Progress of Poverty Alleviation in 2018

Category Main Actions Major Progress

Poverty alleviation through network construction

· Strengthened network coverage in poverty-stricken areas

· Expedited the implementation of universal service projects

· Precise management of network construction for poverty alleviation

· Invested RMB1.75 billion to intensify the network construction in areas of extreme poverty like the “three regions and three prefectures”, helping them realize 75% coverage of both optical broadband and 4G in administrative villages

· Completed optical cable construction for 52,000 administrative villages undertaken by China Telecom

Poverty alleviation through ICT application

· Promoted favorable tariffs and economic terminals for the purpose of poverty alleviation

· Promoted applications such as big data platform for targeted poverty alleviation, “Internet +” etc.

· Provided support for the website of “Social Participation in Poverty Alleviation and Development of China”, carried out “credit + consumption for poverty alleviation”, and promoted “Internet + Society for poverty alleviation”

· Advanced agricultural IoT and agricultural-related big data applications

· Launched 6 types of 4G mobile phones dedicated to poverty alleviation, featuring easy use and low prices

· Provided favorable tariffs for archived low-income families in impoverished villages. 120,000 households in 4 fixed-point poverty alleviation counties have enjoyed favorable packages

· The big data platform for targeted poverty alleviation has served more than 38 million archived impoverished population in more than 930 counties across 15 provinces/autonomous regions/municipalities directly under the central government

· Donated 10 million portions of data traffic (equivalent to more than RMB24 million) to poverty-stricken areas to encourage them to download and use the APP of “Social Participation in Poverty Alleviation and Development of China” website free of charge

Poverty alleviation through industrial development

· Assisted industrial development of pairing fixed-point poverty alleviation counties and facilitated the development of characteristic industries

· Pushed forward the e-commerce-based poverty alleviation model of “TYFO.com + Agro-ICT Cooperatives” to promote the development of characteristic agricultural and sideline industries of the impoverished areas

· Introduced external funds of RMB38 million, and carried out 16 partner assistance projects

· TYFO.com has attracted more than 15 million registered users, and sold agricultural and sideline products worth over RMB50 million throughout the year, of which more than RMB17 million went to 4 fixed-point poverty alleviation counties

· Directly purchased agricultural and sideline products worth over RMB13 million from poor counties

Poverty alleviation through employment

· Introduced policies to encourage employers to give priority to archived impoverished students when recruiting personnel, arranging internship positions and recommending employment

· Provided job skills training for impoverished population

· Provided job skills training for 173 residents in fixed-point poverty alleviation counties

· Offered jobs for 89 people in Shufu County, Muli County and Jiuzhi County

Poverty alleviation through intelligence development

· Strengthened education and training in fixed-point poverty alleviation and partner assistance counties

· Provided IPTV services for poor areas· Facilitated “Internet + education” in remote areas,

and promoted the sharing of good-quality resources through creating interactive classrooms enabled by direct network access

· Trained 329 grassroots officials and 728 technicians in fixed-point poverty alleviation counties

· Introduced the first batch of 235 practical education resources covering agricultural skills training and rural e-commerce education

· Cooperated with relevant ministries to establish more than 400,000 distance education service stations to make it convenient for people with financial difficulties to acquire professional skills

Poverty alleviation through public benefit

· Carried out public benefit projects for poverty alleviation in the area of people’s livelihood

· The Group Company made donations to public benefit programs for poverty alleviation

· Donated more than RMB130 million to poverty alleviation fund, and repaired facilities for people’s livelihood such as hospitals, roads and drinking water projects in fixed-point poverty alleviation and paired-assistance counties

· More than RMB26 million has been raised from more than 450,000 employees for regional poverty alleviation programs through public benefit

China Telecom’s Poverty Alleviation through Six Approaches

Poverty alleviation through intelligence

development

Poverty alleviation

through public

benefit

Pove

rty a

llevia

tion

thro

ugh

empl

oym

ent

Poverty alleviation through network

construction

Poverty allevia

tion

through ICT

application

Poverty alleviation

through industrial

development

China Telecom has earnestly advanced poverty alleviation work, taking into consideration the real situation of poverty-stricken areas. Leaders of the Group Company have gone to the poverty alleviation frontline for 13 times by themselves to conduct researches and supervision. Enterprises of all levels have sent more than 4,000 in-service and temporary poverty-relief officials to participate in the work, and they have strived to use real strength, perform real deeds, and seek practical results, and are highly praised by the party committees and governments, as well as local officials and people of the counties of fixed-point poverty alleviation and partner assistance. The work has also been well recognized by relevant central departments. China Telecom has been assessed as “Good” in fixed-point poverty alleviation assessment of central units.

Seeing that poor people and poor areas will enter the moderately prosperous society together with the rest of the country is a solemn promise made by our Party...We must ensure that by the year 2020, all rural residents living below the current poverty line have been lifted out of poverty, and poverty is eliminated in all poor counties and regions. Poverty alleviation should reach those who truly need it and deliver genuine outcomes.

-Xi Jinping’s Report at the 19th CPC National Congress in October 2017

HIGHLIGHT: CONTRIBUTE TO POVERTY ALLEVIATION THROUGH SIX APPROACHES


In 2018, China Telecom intensified its poverty alleviation efforts in 6 fixed-point counties including Yanyuan County and Muli County in Sichuan Province, Shufu County in Xinjiang Uygur Autonomous Region, Tianlin County in Guangxi Zhuang Autonomous Region, Banbar County in the Tibet Autonomous Region and Jiuzhi County in Qinghai Province, and dispatched officials to implement poverty alleviation programs to help locals improve their production and living conditions and develop economy, with the aim to lift them out of poverty as soon as possible.

Fixed-Point Poverty Alleviation and Partner Assistance Officials Dispatched to Fixed-Point Poverty Alleviation and Paired-Assistance Counties in 2018

Ran YongDeputy Head of Yanyuan County

Wang RuDeputy Head of Muli County

Wang ChaoDeputy Head of Yanyuan County

Yuan GuoliangDeputy Head of Shufu County

Rexiati AbulimitiDeputy Head of Shufu County

Fan DingqiDeputy Secretary General of CPC

Changdu Municipal Committee

Nong GuoningMember of Standing Committee of CPC Tianlin County Committee and

Deputy County Head

Ma XianyuanDeputy Party Secretary of Banbar

County

Yang ZhimeiDeputy Head of Banbar County

Wang PingFirst Secretary of Paoerwan Village in

Yanyuan County

Fan CailinDeputy Head of Jiuzhi County

He FuyongFirst Secretary of Mihe Village of Xiqiu

Township in Muli County

Demonstration Projects in the Six Counties Carried out in 2018

County Names

Names of Projects Major Progress and Achievements

Yanyuan County

Comprehensive educational infrastructure construction of a national middle school

· Improved school facilities and school conditions

Muli County

Smart Tourism· Improved the management system for smart tourism of the county, and increased

publicity efforts using convergence media

The Shepherd Boy Project for Yaks· Helped herdsmen track yaks and conduct health management and control to

facilitate the increase of both production and income

Smart Healthcare Project· Introduced telemedicine support such as “Direct Access to Hospital” and “Health

E-service” of Sichuan Province to enhance local medical level

Shufu CountyLiving Environment Improvement Project for Deeply Impoverished Villages

· Completed village appearance renovation and transformation of model households for three villages

Tianlin County Education Quality Enhancement Project· Completed the installation of hardware of IT platforms of educational resources

for the County and Langping Middle School. Started the construction of dormitory buildings for Langping Middle School

Banbar County

Reginal Central Heath Center of Jinling Township Project

· Satisfied medical services needs for more than 5,600 inhabitants in Jinling Township and Jiagong Township

Reginal Central Heath Center of Lazi Township Project

· Satisfied medical services needs for more than 4,200 inhabitants in Lazi Township

Jiuzhi County Organic Fertilizer Project· Facilitated development of local organic fertilizer industry and solved the problem of

employment

Achievements in Expansion of Network Coverage in the Six Counties in 2018

Administrative villages newly covered by optical broadband

Administrative villages newly covered by 4G

Broadband access rate in administrative villages

%

Overview of CT’s Fixed-Point Poverty Alleviation and Paired-Assistance Counties

Tips

1 Ya n y u a n C o u n t y i s u n d e r the jurisdict ion of the Liangshan Yi Autonomous Prefecture of Sichuan Province. The terrain is dominated by alpine valleys and hil ly basins. Most places of the county are over 2,000 meters above the sea level. It covers an area of nearly 8,400 square kilometers, and is inhabited by 21 ethnic groups including the Yi People, the Mongolians and the Tibetan people. The population is more than 300,000. China Telecom started carrying out fixed-point poverty alleviation projects in this county in 2003.

2 Muli Tibetan Autonomous County is under the jurisdiction of the Liangshan Yi Autonomous Prefecture of Sichuan Province. Mountains, mountain plains and canyons dominate the terrain, with an average elevation of 3,100 meters. It covers an area of 13,000 square kilometers. There are 21 ethnic groups living in this area, dominated by Tibetans. It has a population of 130,000. China Telecom started carrying out fixed-point poverty alleviation projects in this county in 2003.

3 Shufu County is a county under the jurisdiction of Kashi City, Xinjiang Uygur Autonomous Region. It is located in the eastern foothills of the Pamir Plateau, on the western edge of the Tarim Basin. Dry with little rainfall, the county covers an area of over 2,700 square kilometers. It is home to 13 ethnic groups dominated by the Uygur population and has a population of 280,000. China Telecom started carrying out fixed-point poverty alleviation projects in this county in 2013.

4 Tianlin County is under the jurisdiction of Guangxi Zhuang Autonomous Region. It covers an area of more than 5,500 square kilometers and is almost all mountainous. It is home to 11 ethnic groups including Zhuang, Yao and Miao, with a population of 250,000. China Telecom started carrying out fixed-point poverty alleviation projects in this county in 2015.

12

4

3

5

6

5 Banbar County is under the jurisdiction of Changdu City, Tibet Autonomous Region. The county has a total area of more than 8,800 square kilometers, at an altitude of over 3,500 meters, and has a population of about 42,000. Some people still live in mountains with an inconvenient transportation and lack of production and living resources. China Telecom started carrying out partner assistance projects in this county in 2002.

6 Jiuzhi County is a county under the jurisdiction of Guoluo Tibetan Autonomous Prefecture in Qinghai Province. It has an area of over 8,700 square kilometers at an altitude of over 3,500 meters. It is home to Tibetan, Hui and Mongolian peoples, with a population of 28,000. China Telecom started carrying out partner assistance projects in this county in 2016.


Located in a remote mountainous area, the Dawanzi Village in Wodi Township of Yanyuan County is a Yi village with more than 110 households and more than 550 people being impoverished. Most villagers’ groups there have no hard-packed roads, running water, stable electricity supply or communications signals. Gao Chaowu, head of a sub-branch of Sichuan Branch who knows Yi Language and is familiar with rural affairs has served as the first secretary of the village since 2015. He led engineering and technical staff to install communications optical fiber cables and set up base stations from scratch by walking and riding horses, and provided each archived poor household with one handset; advanced the construction of livelihood projects including village roads, electricity supply and water supply; led villagers to plant walnuts (more than 2,900 mu), green pepper and Sichuan pepper (together more than 2,300 mu), and tested the interplantation of two vegetation medicinal materials, namely large-leaved gentian and costusroot; and opened an evening school for villagers to help them enhance their planting and farming skills. Significant changes have happened in this village in the past four years: six new centralized settlements were built, with full access to roads, water, electricity, broadband and TV signals and new houses for each and every household; the cash crops such as walnuts and Sichuan pepper planted by poverty-stricken households started to yield in 2018, making their annual income per capita increase to RMB3,600 in 2018 from RMB2,000 in 2015. The village as a whole was regarded out of poverty after inspection by both provincial and prefectural governments.

Transportation between townships under Muli County and the county seat is very inconvenient, and the farthest Bowo Town is 120 kms away from the county seat. With the rugged mountain roads, it would take cadres in townships two days to attend a meeting in the county seat and then return to their townships. Built on the full coverage of optical broadband and 4G network over all townships, China Telecom facilitated the launch of an HD video conferencing system for county government and 29 townships under its jurisdiction in June 2018, with the aim to improve the working conditions of local governments. Lijiazui Village of Wujiao Township is a closed hidden village with very backward conditions. In order to make phone calls to their children working away from the hometown, locals used to need to ride motorbikes or horses to somewhere more than 10 kms away to search for mobile signals. Sichuan Branch started “Lijiazui Special Communications Project for Poverty Alleviation” in 2018, and China Comservice Sichuan Branch also set up a working group, overcoming difficulties brought by bad traffic condition in raining season to carry out construction work and fully opened 4G and broadband communications for Lijiazui. Muli County has a tradition of raising yaks. China Telecom provided 2,000 sets of “Shepherd Boy” internet of livestock system for Yazui and Kangwu livestock farms free of charge. The system features realtime acquisition of bioinformation of yaks, and accurate monitoring of health of yaks to reduce the losses caused by primitive grazing methods adopted before.

Banbar County relocated people living in alpine region, and China Telecom has built communications networks for the centralized relocation settlement points in Xuba Village of Maxiu Township in a timely manner. The construction personnel have overcome disadvantages such as high altitude, many steep slopes and frequent rain and snow, transported construction materials using manpower, and finally launched broadband services for all settlement points, creating conditions for the implementation of poverty-relief projects.

Jiuzhi County has weakness in terms of communications facilities. In 2018, Qinghai Branch worked together with local authorities to carry out poverty alleviation projects, and supplemented 4G base stations in some townships. In Suohurima Village of Suohurima County, the 4G base station was opened on September 29, providing 4G services for 116 people of 32 households. Meanwhile, Qinghai Branch also held a special recruitment fair for all university graduates from the archived low-income families of the five townships and one town under the county, helping 31 children of these families find jobs.

Tianlin County abounds with lucid Ganoderma, camellia oil, honey and other local specialties. Built on the coverage of optical broadband and 4G network across rural areas, China Telecom has intensified its support for e-commerce-based poverty alleviation. In Naguang Village, Leli Township, China Telecom assisted the establishment of Naguang Village Agro-ICT Cooperative, which adopts the O2O model featuring “low income family + cooperative + outlet store + consumer”, introduces a dozen of local specialties into the experience hall and makes it convenient for consumers in other places to purchase them online. With the help of e-commerce, local specialties could be sold in broader markets. China Telecom has also intensively carried out optical fiber broadband network construction in local primary and middle schools, enabling full coverage of optical broadband network in 76 primary and middle schools, with bandwidth no less than 200Mbps in each school, serving more than 40,000 students and faculty.

On July 10, 2018, Muli County held a teleconference on flood control and disaster mitigation as well as analysis and judgment on prevention and control of geological disasters using the HD video conference system for townships, which was newly put into use

On August 20, 2018, the optical broadband and 4G network were fully launched in Lijiazui Village, Wujiao Township of Muli County. Villagers now could get access to communications services conveniently

Shufu County has great potential in the planting of cash crops. The apricot industry in Tie’rimu Township has taken shape with the apricot tree forest covering an area of 20,000 mu. The harvest season of local apricot, praised as “king of apricot” of China, lasts for only 20 days. The harvest season of

On July 6, 2018, four households in Tie’rimu Township, Shufu County dried apricots on the drying field built with the help of China Telecom

“China Te lecom Exper ience Hal l for Targeted Poverty A l lev iat ion• Online Specialty Outlet Store of Cooperative of Naguang Village, Tianlin County” was open on November 1, 2018

By opening the online outlet store and entering China Telecom Experience

Hall, we find broader markets for our goods. We will cherish this platform.

-Li Zhengguang, legal representative of villagers’ cooperative of Naguang

Village

China Telecom has attached great importance to poverty alleviation. With its help, the communications network coverage and IT construction of

Jiuzhi County has been on the forefront of the prefecture. With the employment for poverty alleviation, the problem of employment of children of low-

income families have been addressed, providing opportunities for graduates of technical secondary schools and junior colleges to explore bigger world.

-Song Jizhen, member of the standing committee of Prefectural Party Committee of Tibetan Autonomous Prefecture of Golog and Secretary of the County

Committee of Jiuzhi

In addition to fixed-point poverty alleviation and partner assistance in 6 counties mentioned above, the Group Company, together with companies at all levels, has implemented the deployment of poverty alleviation in an all-round manner by actively facilitating other archived poverty-stricken villages to get out of poverty. In 2018, China Telecom reinforced investment and construction of network in archived poverty-stricken villages, with 65% of them have been covered by fiber-optic broadband and 80% of them have been covered by 4G network. In southern provinces/municipalities/autonomous regions where China Telecom is the main player, more than 80% of archived poverty-stricken villages have been covered by fiber-optic broadband. Companies at all levels have strengthened their engagement with local Party committees and governments, dispatched officials, invested funds and implemented projects, in a bid to help poverty-stricken villages and households get rid of poverty as soon as possible.

Poverty Alleviation in Other Places

Actively facilitated local governments’ poverty alleviation efforts

Actively facilitated local governments’ poverty alleviation efforts

+ counties

【Poverty Alleviation in the Six Counties】

apricot is in June, which is also the busy farming season. In the past, the apricots ended up rotten in the soil because farmers were too busy to pick them. Despite the competitive industry, locals could not profit from it. In 2018, China Telecom helped them build a 3,600 m2 natural drying field to produce dried apricots. Every year, 200 tons of fresh apricots could be processed and produced into 50 tons of dried apricots with high quality, bringing an output value of more than RMB2 million. 283 poor households of 2 villages directly benefitted from it in 2018, with their incomes doubled. To enhance local employment, Xinjiang Branch and China Comserviec Xinjiang Company carried out recruitment twice in 2018 for poverty alleviation, and organized technical trainings on communications line construction for 100 people, and 57 of them who met the qualification have been enrolled in the construction teams.

+ villages


China Telecommunications Corporation Limited is an ultra-large communications operator in China. It has ranked as a Fortune Global 500 company for many years in a row. It specializes in integrated information service including mobile telecom, Internet access & application, landline, satellite communication, ICT integration, etc. The Group Company has total assets of RMB844.1 billion and 590,000 employees.

China Telecommunications Corporation Limited is owned by the central government and funded by the state. The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) fulfills the responsibility as an investor on behalf of the state. The Group has set up Board of Directors as required by the SASAC. The Board of Directors is the highest decision-making agency within the Group, having a Nomination Committee, an Auditing and Risk Management Committee as well as a Remuneration and Appraisal Committee.

China Telecommunications Corporation Limited has operating organizations in 31 provinces/autonomous regions/municipalities directly under the central government, America, Europe, and Asia. The Group controls 3 listed companies including China Telecom Corporation Limited, China Communications Services Corporation Limited and Best Tone Holding Co., Ltd.

About Us

AFTERWORD


Headquarters’ Departments Discipline Inspection and Supervision Team

China Communications Services Co., Ltd.

Branches in 31 provinces/autonomous regions/municipalities directly under the central government

Best Tone Information Service Co., Ltd.

Tianyi Telecom Terminals Co., Ltd.

Bestpay Co., Ltd.

China Telecom System Integration Co., Ltd.

China Telecom Global Limited

China Telecom Corporation Limited E-Cloud Computing Company

E-Surfing IMusic Culture & Technology Co., Ltd.

China Telecom Corporat ion Limited Electronic Distribution & Operation Center

China Telecom Corporation Limited Technology Innovation Center

China Telecom College

China Telecom Finance Co., Ltd.

Tianyi Capital Holding Co., Ltd.

Compan ies in 22 prov inces/autonomous regions/municipalities directly under the central government

Ch i n a I n t e r na t i ona l Te l ecommun i ca t i on Construction Corporation

China Communications Services (Hong Kong) International Limited

CCS Soft Co., Ltd.

China DataCom Co., Ltd.

China Comservice Supply Chain Company

S. B. Submarine Systems Co., Ltd.

Procurement Departm

ent

Finance Department

Sales and Channel Expansion

Department

General Affairs O

ffice (Office of the

Board)

Corporate IT D

epartment (D

ata Center)

Hum

an Resource D

epartment

(Departm

ent of Party Leading G

roup Organization)

Governm

ent & Corporate Customer

Department

Ne

two

rk O

pe

ratio

n a

nd

Ma

inte

na

nc

e D

ep

artm

en

t (Netw

ork and Information Security

Managem

ent Department)

Marketing Departm

ent

China Telecom Labor Union

Global Business Departm

ent

Corporate Strategy D

epartment

(Legal Department)

Party-Masses W

ork Departm

ent (D

epartment of Party Leading

Group Prom

otion)

Regulatory Affairs D

epartment

(Interconnecting and Interworking

Department)

Party Leading Group Inspection

Office

Auditing Department

Sideline Industry Managem

ent Departm

ent

Customer Service Departm

ent

Technology Innovation Department

Network Developm

ent Department

Capital Operation Departm

ent

China Telecom’s e-commerce platform has been vigorously facilitating the development of poverty-stricken areas. The TYFO.com platform has undertaken the task of accessibility of information to villages and rural households in several provinces assigned by the Ministry of Agriculture and Rural Affairs. It provides featured ICT applications related to agriculture online, covering agricultural policies, technologies and market information; and set up a hall dedicated to CT targeted poverty alleviation to boost the sales of characteristic agricultural and sideline products from poverty-stricken areas. The platform has assisted the sales of agricultural and sideline products worth more than RMB50 million all year round. In addition, the other platforms of China Telecom including BestPay, 189point mall and HuanGo App have assisted the sales of agricultural and sideline products worth nearly RMB8 million.

Gansu Branch strengthened its organizational leadership in poverty alleviation, centralized human resources, materials and finance to form 15 poverty alleviation working teams, and dispatched over 300 cadres to carry out poverty alleviation work in villages. It also expedited the network-based poverty alleviation for poor villages. In 2018, the coverage rates of optical broadband and 4G in 6,220 archived impoverished villages province-wide were 88.3% and 88.7% respectively. In particular, optical broadband has been installed in 650 poverty alleviation points free of charge, 560 poor households were entitled to free broadband and network TV services, and 50,000 poor households could enjoy free traffic dedicated to poverty alleviation. The industrial development for poverty alleviation has also been advanced in an in-depth manner. In Li County, Longnan City, Gansu Branch facilitated the conclusion of cooperation agreements worth more than RMB2 million between farmers and Spring Pharmaceutical Co., Ltd., the peony planting agreements between Daguan Village

【Poverty Alleviation through Industrial Development in Light of Local Conditions】

On March 30, 2018, Xinjiang Branch hired fruit planting expert Usman Niyaz (first left) to guide the planting of pomegranate and watermelon in Ying’awati Village of Shikeranmu Township, Kashgar. In that year, 67 mu watermelon was interplanted in the 100 mu pomegranate fields, and the average yield per mu of watermelon was 700 kg, bringing the increase of incomes for more than RMB70,000 for 28 households

I used to make a living only by growing grains in the land. Now I can earn 80 yuan each day in the village, and the base also provides two meals. This

is what I could never have dreamed of, and I couldn’t be happier.

-Jin Hesheng, an impoverished person working in the mushroom base of Zhuangke Village, Huangzhuang Township of Song County, Luoyang City, Henan

Province

Zhuangke Village, Huangzhuang Township of Song County, Luoyang City, Henan Province is located at the hinterland of Waifang Mountain, with a large population and relatively little arable land. Qian Jin, a cadre for poverty alleviation dispatched by Henan Branch found out after investigation that there was a rare species of edible fungus called morchella, and he was told by experts that the local environment could satisfy the growing requirements of this fungus all year round. Funded by Henan Branch, a 120-mu mushroom cultivation base in the village was established, introducing investors to develop the whole industrial chain integrating the research and development of edible mushrooms, standardized planting, deep processing and sales of dried mushrooms. According to the plan, 80 spawn running greenhouses and 124 mushroom cropping greenhouses would be built, with the capability of producing 2 million packets of mushrooms and 4 million packets of bacteria sticks annually. The base not only employed poor households in the village, but also provided jobs for impoverished people in four villages nearby. It is expected that the annual income per capita could exceed RMB20,000.

and Yijia Village of Sanyu Township and Gansu Lvmeng Peony Industry Technology Development Co., Ltd. The contracted impoverished farmers became shareholders and could receive dividends. The Branch also actively raised funds to carry out projects in poverty-stricken villages, including road hardening, housing renovation and pigsty latrine transformation.

Xinjiang Branch actively facilitated the development of characteristic industries in impoverished areas. Ateaoyinake Village of Aoyitake Township, Aketao County, Kizilsu Kirghiz Autonomous Prefecture is a mountainous village located on the Pamirs Plateau. Among the 160 households in the village, 110 of them are archived impoverished households. Xinjiang Branch has helped locals get rid of poverty by developing green ecology and tourism. In 2018, it organized farmers and herdsmen to establish a cooperative enterprise specializing in the operation of green and ecological good quality planting and breeding, and carried out pilot ecological breeding of black native chickens while promoting the planting of sand field watermelons, attracting tourists to come for traveling and purchasing local specialties. Villagers of the villagers’ cooperative have increased their incomes by RMB1,000 to RMB3,000 per household. Beautiful sceneries are bringing harvest for locals.

China Telecom Co., Ltd.

Best Tone Holding Co., Ltd.

China Telecom Satellite Communications Co., Ltd.

Xinyuan Public Information Development Co., Ltd.

E-Surfing Technology Venture Capital Co., Ltd.

China Telecom Investment Co., Ltd.


Essential Responsibility 2016 2017 2018

Call drop rate of mobile communication (%) 0.23 0.24 0.22

Call completing rate of mobile communication network (%) 97.62 97.51 97.81

4G network outdoor base station (10,000) 63 87 97

Cities covered by 4G network 343 343 343

4G international roaming countries and regions 106 137 158

Call completing rate for landline phones (%) 96.97 94.86 92.35

Packet loss rate of backbone network of broadband Internet ChinaNet (%)

0.11 0.02 0.06

Broadband coverage rate in administrative villages in 21 southern provinces/autonomous regions/municipalities directly under the central government (%)

92 95 96

Internet backbone interconnection bandwidth (Gbps) 3,213 4,656 5,886

International interconnection bandwidth (Gbps) 3,886 4,902 5,640

Emergency communication staff (person-time) 190,000 111,600 87,046

Number of rural channel outlets (10,000) 26.2 22.5 24.1

R&D input as a percentage of income (%) 1.1 1.3 1.32

Number of R&D staff 22,964 22,098 25,468

Number of new patent licensing 438 677 823

Total tax paid (RMB100 million) 148.9 124.6 105.7

Number of people employed (10,000 people) 2.2 2.3 1.8

Labor productivity of employees (RMB10,000/person/year) 104.1 109.1 116.4

Responsibility to Shareholders 2016 2017 2018

Total assets (RMB100 million) 8,049 8,252 8,441

Main business income (RMB100 million) 3,738 4,001 4,303

Ranking in Fortune Global 500 132 133 141

Total profit (RMB100 million) 245.5 255.7 258.1

Asset-liability ratio (%) 42.8 42.9 42.6

Value-maintained and value-added rate of state-owned assets (%) 100.3 106.4 107.0

Table of KPIs

Responsibility to Customers 2016 2017 2018

Number of mobile subscribers (million) 215.0 250.0 303.0

Among which: 4G subscribers (million) 121.9 182.0 242.4

Number of users of landline phones (million) 131.7 126.6 121.3

Number of wired broadband users (million) 144.3 153.5 169.8

Among which: FTTH/O users (million) 117.5 140.8 157.4

Connection number of IoT (million) 14.2 44.3 106.9

Number of Internet TV subscribers (million) 66.6 97.5 121.4

Number of registered BestPay users (million) 299.0 431.0 609.0

Number of customer complaints (piece) 1,256 1,239 1,399

Customer complaint rate (person-time/million users) 3.6 2.5 2.5

Degree of satisfaction of mobile Internet users (points) 77.6 76.4 78.9

Degree of satisfaction of mobile voice users (points) 79.1 80.9 83.8

Degree of satisfaction of fixed Internet access (points) 73.2 75.0 79.9

Degree of satisfaction of landline voice users (points) 79.7 79.4 85.0

Responsibility to Employees 2016 2017 2018

Percentage of employees participating in labor unions (%) 99.0 99.5 99.7

Number of grass-roots labor union organizations 2,465 2,543 2,605

Ratio of male to female employees (male : female) 2.2:1 2.2:1 2.2:1

Percentage of ethnic minority employees (%) 4.9 4.9 5.1

Percentage of female managers (%) 19.9 20.0 19.6

Coverage of health and safety training (%) 95 96 98

Work-related injury and death (person) 0 1 1

Per capita training time (hour/person) 45.3 22.3 25.1

Employee turnover rate (%) 3.5 4.4 4.1

Solatium investment (RMB10,000) 7,562 9,002 9,875


Environmental Responsibility 2016 2017 2018

Consumption of electric energy during operation (hundred million kWh) 164.3 172.2 186.1

Electric energy saved (hundred million kWh) 7.0 5.0 4.9

Consumption of gasoline (10,000 tons) 12.3 13.1 13.65

Consumption of diesel (10,000 tons) 2.5 3.0 2.97

Consumption of natural gas (10,000 cubic meters) 2,119 1,644 1,860

Consumption of purchased heat (million kilojoule) —— 1,754,004 1,706,677

Greenhouse gas emission during operation (10,000 tons) 618.2 642.2 690.0

Energy consumption per unit of information flow (kgce/TB) 8.3 6.6 5.6

Number of person-time in training on energy saving and emission reduction (person-time)

2,161 984 4,995

Power consumption per carrier frequency at base station (kWh /carrier frequency)

909 791 717

Coverage rate of energy-saving technologies at base station (%) 64.7 67.0 63.0

Coverage rate of energy-saving technologies at communication equipment room (%)

61.7 69.3 72.0

Percentage of green procurement (%) 78 80 82

Amount of disposed waste (ton) —— 123,747 105,021

Income from waste disposal (RMB100 million) 27.7 26.6 21.2

Online trading volume of proprietary electronic channels (RMB100 million)

61.1 89.1 222.2

Trading volume of mobile payment (RMB100 million) 1,192 1,761 3,294

Staff per capita learning time in online college (hour) 9.5 16.6 27.9

Public Welfare Responsibility 2016 2017 2018

Total social donation (RMB10,000) 6,845 5,780 13,937

Number of registered volunteers 38,436 44,271 60,458

Number of person-time of volunteer activities (person-time) 67,740 89,920 105,030

Note 1: “Number of customer complaints” and “Customer complaint rate” are monthly averages according to the statistical data of the Ministry of Industry and Information Technology. The statistical scope is the complaint number recorded by the complaint centers of the Ministry of Industry and Information Technology plus the complaint number provided by provincial communication administrations

Award to Honor Award Granted by

China Telecommunications Corporation Limited.

Class A Enterprise for 2017 Business Performance SASAC

Rated “Good” in Fixed-Point Poverty Alleviation Evaluation of Central Units in 2018 CPAD

ITU Telecom World 2018 “Excellence Award” ITU

The Structured Tutorial System for New Employees and the Entity Channel Training and Promoting Practical Project won ATD Excellence in Practice Awards

ATD (USA)

China Telecom Co., Ltd.

Most Honored Company in Asia; Best CEO in Asia; Best CFO in Asia; Best Investor Relations Program in Asia; Best ESG SRI Metrics in Asia

Institutional Investor

Most Honored Company (2009-2018) FinanceAsia

Most Outstanding Company in Hong Kong - Telecommunication Services Sector Asiamoney

Best Investor Relations Team; Platinum Award - Excellence in Environmental, Social and Corporate Governance; Best CEO in Telecommunications

The Asset

The Best of Asia - Icon on Corporate Governance (2007-2018); Best CEO; Best CFO; Best Investor Relations

Corporate Governance Asia

The Global Top 50 - Best in Communications Sector; Best IR Website Award IR Magazine

China Communications Services Co., Ltd.

Taozhu Gong Awards – Best Working Capital Management EuroFinance

Platinum Award - Excellence in Environmental, Social and Corporate Governance The Asset

Ranked the 6th in “China’s Top 100 Software Enterprises 2018”China Information Technology Industry Federation

Asia’s Best Managed Companies Poll 2018 FinanceAsia

The Best of Asia – “Icon on Corporate Governance”; Best Investor Relations Corporate Governance Asia

Main Honors


In 2019, China Telecom will carry out the following tasks in fulfilling our social responsibilities:

Promote responsibility management: We will continue to publicize and implement China Telecom’s responsibilities, and strengthen the awareness of the management and wide employees in performing our responsibilities in a new era. We will implement the requirements of high-quality development profoundly, push forward the work deployment related to high-quality development, and carry out responsibility fulfillment evaluation and assessment. We will enhance our communication with stakeholders in multiple ways, and respond to the concerns of stakeholders actively. We will select and commend good cases in fulfillment and give impetus to practice innovation in this aspect.

Enhance network foundation: We will keep building space-ground integrated basic networks that have large bandwidth and wide coverage. We will optimize 4G network coverage and improve 4G network quality. We will improve the coverage of optical broadband in towns and administrative villages, consolidate and enhance optical network quality and deploy gigabit network based on users’ needs. We will build broadband satellite network with large capacity to meet customers’ demands of satellite communications. We will advance the building and commercial use of 5G network and drive 5G industrial chain to maturity, to provide good use experience for users. We will promote the intelligent evolution of networks according to the network restructuring targets in CTNet2025, accelerate cloud-network integration, and build a cloud-network integrated, safe and reliable comprehensive network with efficient operation. We will enhance network information security, and improve our capability in safeguarding emergency communications to ensure safe and smooth network operation. We will further implement speed up and fees down and realize number portability for users.

Boost digital economy: We will enhance cooperation with all walks of life. Relying on the five ecosystem circles of smart connection, smart home, Internet finance, DICT and IoT, we will vigorously promote the application of information technologies in the fields of intelligent manufacturing, smart agriculture, smart transport & logistics, smart government, smart education, smart healthcare, smart elderly care and smart community; promote the integration of information technologies with new industrialization, urbanization and agricultural modernization; promote the in-depth integration of information technologies with real economy; and promote the integration of information technologies with government management and social services.

Create a better life: We will protect users’ rights and interests according to law, improve service quality, and let users rest assured of consumption. We will safeguard the rights and interests of employees according to law and strive to create opportunities for them to display their talents. We will promote the building of talent teams, innovate the mechanism of talent selection, cultivation, use and incentive, and give full play to the roles of all types of talents. We will carry forward the spirit of model workers and craftsmen, and strengthen safe and civilized production management. We will implement environmental protection laws and regulations and regulatory requirements, enhance energy conservation and emission reduction management, actively promote energy-saving technologies, deepen green procurement, build a green network, and strive to achieve further reduction of energy consumption per unit information flow. We will vigorously carry forward the “six poverty alleviation approaches”, help the fixed-point poverty alleviation and partner assistance areas to get rid of poverty at an early date, and actively assist the targeted poverty alleviation work in all areas. We will support the development of social undertakings such as science, education, culture and health. We will actively participate in the construction of “Belt and Road” to boost the economic and social development of the countries/regions along the line.

Improve vitality and capacity: We will adhere to legal compliance and integrity management. We will promote the reform of mixed ownership, deepen the reform of scientific and technological innovation system and product innovation system, and continuously push forward the three-dimensional inter-driven reform of “segment contracting, professional operation and inverted pyramid support”, so as to enhance the vitality and capacity of the enterprise and improve efficiency and benefits. We will advance smart operation, improve data operation capability, support improvement of precision marketing, fine service, lean network operation and accurate management, and boost efficient use of resources and improvement of operational efficiency. We will also develop and promote intelligent customer service tools and applications to enhance the capability of intelligent customer service.

Commissioned by China Telecom, experts were selected by Chinese Expert Committee on CSR Report Rating to form a rating team and give a rating to “China Telecom CSR Report 2018” (hereafter referred to as “the Report”).

I. Basis of Rating

“Guidelines for Preparation of CSR Reports in China (CASS-CSR 4.0)” of Chinese Academy of Social Sciences and “Telecom Industry and Rating Standard of CSR Reports in China (2019)” of Chinese Expert Committee on CSR Report Rating.

II. Process of Rating

1. The rating team reviewed the “CSR Report Process Information Confirmation Letter” and related evidentiary materials submitted by the Report preparation team;

2. The rating team evaluated the compilation process and contents of the Report, and drafted a rating report;

3. The vice chairman of Chinese Expert Committee on CSR Report Rating and leader and expert of the rating team reviewed and signed the rating report.

III. Conclusion of Rating

Procedural Performance (ӹӹӹӹӹ )The Group’s Corporate Strategy Department has set up a report preparation

team, and the Chairman and the President of the Company were responsible for controlling the overall direction and key nodes, as well as the final review of the report. The Company positioned the report as an important tool to improve CSR transparency, promote CSR management, enhance communication with stakeholders, and spread the image of the Company as a responsible enterprise. It identified substantive issues according to relevant national policies, company’s major issues, industry benchmarking analysis, stakeholder surveys, etc. It drove the subordinate listed companies to publish their CSR reports and strengthen the management of social responsibilities vertically. The Department planned to release the Report on the official website and present it in electronic and printed versions and in both English and Chinese, having outstanding procedural performance.

Substantive Performance (ӹӹӹӹӹ )The Report systematically discloses key topics in the telecom industry in detail,

such as ensuring communications quality, innovation in products and services, dealing with customer complaints, protecting customer information, creating a healthy Internet environment, safeguarding emergency communications, closing the digital gap, co-construction and sharing of base stations, development and application of environmental protection technologies and managing electromagnetic radiation, having outstanding substantive performance.

Completeness (ӹӹӹӹӺ )The Report systematically discloses 82.30% of the key indicators of the

telecom industry from such aspects as “Laying the Network Foundation for High-Quality Development”, “Boosting High-Quality Development of Digital Economy”, “Creating a Better Life with High-Quality Development Together”, “Enhancing the Vitality and Capacity of High-Quality Development” and “Contributing to Poverty Alleviation through Six Approaches”, and is leading in completeness.

Balance (ӹӹӹӹӹ )The Report discloses negative data and information including call drop rate

of mobile communications, number of great and above casualties, number of major risks, customer complaint rate, employee turnover rate, as well as the issue of improper publicity on “unlimited packages” and its rectification. It has an outstanding balance performance.

Comparability (ӹӹӹӹӹ )The Report reveals historic data about 76 key performance indicators in

three consecutive years, including total assets, number of channel outlets, R&D input as a percentage of income, percentage of employees participating in labor unions, coverage of health and safety training, per capita training time, electric

energy saved, coverage rate of energy-saving technologies at base station, amount of disposed waste, etc. At the same time, horizontal comparison is made in terms of the rank of the 141st in Fortune 500. In conclusion, it is excellent in comparability.

Readability (ӹӹӹӹӹ )The Report is themed with “Move Toward High-Quality Development”, and

takes the basis, driving-force and pursuing of high-quality development as the main line. It elaborates the enterprise’s annual responsibility fulfilling philosophies, practices and achievements for the topics of digital economy, livelihood development, customer service, employee growth, green development, public welfare, fulfillment of overseas responsibilities, etc. The framework structure is clear, key topics are highlighted and the in-depth understanding of the enterprise in CSR fulfillment is manifested. The cover and chapters outline the characteristic performance scenarios with vector elements, and integrate elements of the Company’s main businesses. This not only highlights the industry features, but also improves the identification of the Report. “Tips” columns are scattered in the report to explain terminologies, which enhance readability of the report. Therefore, it is excellent in readability.

Originality (ӹӹӹӹӺ )The Report responds to national macro-policies. The opening chapter

focuses on “Moving toward High-Quality Development”, and the last chapter sets a responsibility highlight of “Contributing to Poverty Alleviation through Six Approaches”. The Report pays attention to high-quality development, targeted poverty alleviation and other hot topics, highlighting the enterprise’s fulfillment practices and showing the responsibility of a central enterprise in implementing state macro-policies. Many references to testimonials from stakeholders prove the effectiveness of the company’s performance, which strengthen the communication capability and credibility of the report preparation. So it has leading innovative performance.

Overall Rating (ӹӹӹӹӹ )As evaluated by the rating team, the 2018 China Telecom CSR Report is rated

five-star and is an outstanding CSR report.IV. Suggestions for Improvement

Increase disclosures of core industrial indicators to improve the completeness of the Report.

Outlook Rating ReportRating Report of China Telecom CSR Report 2018

Expert of Rating TeamLeader of Rating Team

Process Evaluator Ren Jiaojiao

Issuing date: August 5, 2019

China Telecom CSR Report won five-star rating for the 8th year in a row

Scan to check the corporate rating file

Vice Chairman of Chinese Expert Committee on CSR Report Rating

88 China Telecom

Dear Readers,

Thank you for taking time to read “China Telecom CSR Report 2018”.

If you have any advice or suggestions for this report and for China Telecom in fulfilling CSRs, you are welcome to fill in the following form and send it to us by post, fax or email. For the contact, please refer to the Report Specification on the first page.

Thank you for your concern and support for China Telecom.

CSR Office, China Telecom

June 2019

1. Do you think this report can inform you of China Telecom’s fulfillment of CSRs?

A. Excellent B. Good C. Not bad D. Bad E. Not informed

2. How do you evaluate China Telecom’s actions in fulfilling high-quality development responsibilities in a new era?

A. Excellent B. Good C. Not bad D. Bad E. Very bad

3. How do you evaluate China Telecom’s achievements in fulfilling social responsibilities in 2018?

A. Excellent B. Good C. Not bad D. Bad E. Very bad

4. In your opinion, which areas should China Telecom improve in this report? (Multiple Choices)

A. Framework and logic B. Substance and integrity C. Language expression D. Report design

E. Others________

5. Please leave your other advice or suggestions:

Please let us know more about you if convenient:

Name: Contact:

Occupation: Employer:

Reader Feedback Form

CH

INA TELEC

OM

MU

NIC

ATION

S CO

RPORATIO

N LIM

ITED


Address: No. 31 Financial Street, Xicheng District, Beijing, ChinaZip Code: 100033Website: http://www.chinatelecom.com.cn

2018 CSR REPO

RT

Documents

report specification