About China Telecom Corporation

China Telecom Corporation Limited operates as an integrated information service provider in the People’s Republic of China (PRC). The company operates is a subsidiary of China Telecommunications Corporation (China Telecom Group). The company offers a range of telecommunications services, including internet services, information and application services, voice services, telecommunications network resource and equipment service and other related services. Products and Services Internet Services The company’s internet services consist of wireline internet access services, including dial-up and broadband services, and mobile internet services. It offers internet services through integrated and customizable service plans along with other various business models, which create the synergy that benefits its internet, mobile and other services. In addition, the company created a new development mode of ‘5G + Privileges + Applications’ to forge new edges in the area of individual informatization services. Leveraging ‘5G + e-Surfing Cloud’ capabilities, the company provided users with network experience, and applications and services. It optimized its 5G member privilege system, cooperated with application partners to launch eco-privileges and rolled out various applications featuring 5G, including e-Surfing Cloud Drive, e-Surfing Ultra HD, Color Ringback Tone with Video, e-Surfing Cloud VR and e-Surfing Cloud Game. Furthermore, the company launched the 5G cloud mobile phone, namely ‘e-Surfing One’, which leveraged the capabilities of cloud-network integration to break through performance bottlenecks for devices and facilitated the improving popularization of 5G devices. The company focuses on meeting the demand for digitalization and intelligentization from family customers and upgraded family informatization services. With the ‘Triple-Gigabit’ access service, including 5G + Fiber Broadband + WiFi6, the company improved the customer experience of family services by promoting convergence of 5G and family services and accelerating the speed upgrades of family broadband and WiFi services. Furthermore, the company developed the DICT products and services portfolio for Smart Family and improved the portfolio of terminals and applications in functional use cases, such as home security surveillance, living space coziness, education and entertainment to meet the needs of family life scenes. In September 2019, to build a 5G network and to create its 5G service capabilities, the company entered into the 5G Cooperation Agreement with China United Network Communications Corporation Limited to leverage the mutually complementary advantages in network and spectrum resources and rolled out 5G network co-building and co-sharing. In 2020, the company continued to promote 5G network co-building and co-sharing. By the end of 2020, the total number of 5G base stations in use exceeded 380,000. In June 2020, 5G Implementation Guidelines: SA Option 2, or the SA Guidelines, was released by Global System for Mobile communications Association, which represents the interests of mobile operators worldwide, including handset and equipment manufacturers, software companies, equipment suppliers and Internet companies, as well as organizations in adjacent industry sectors. The company conducted 4G network co-sharing and activated approximately 170,000 co-shared 4G base stations throughout the year. Information and Application Services The company’s information and application services include Internet protocol TV (e-Surfing HD), Whole-home WiFi, Family Cloud, e-Surfing Webcam, Internet data center (IDC), cloud computing, content delivery networks, Big Data, digital platform and system integration related services, as well as caller display, SMS, multimedia messaging services, email services and music related content and applications services. In 2020, the company persisted to promote household informatization services, and promoted the ‘Triple-Gigabit’ access service, including 5G + Fiber Broadband + WiFi6 based on its five-in-one Smart Family product and service portfolio, combining Smart Broadband, Smart Home Platform, Smart Applications, Smart Security and Smart Services, continuing to upgrade its Smart Family product and service portfolio. Leveraging the technical features of 5G ‘Super Uplink’ (UL Tx switching), edge cloud and the Internet of Things (IoT), the company has built a series of projects for various vertical industries, such as industrial Internet, smart energy, smart healthcare and smart parks, and launched 5G applications, such as remote control, machine vision, and Automated Guided Vehicles. As of December 31, 2020, the company had signed contracts with a total of approximately 1,900 customers for its 5G industry applications, with 1,100 use cases being launched. Furthermore, focusing on the scenario-based demands from enterprises’ cloud migration, the company continued to optimize its resource deployment for IDC and cloud. Its IoT open platform supported mainstream IoT access protocols, enabling the launch of partners’ application products, and the number of IoT connected devices reached 237.6 million, as of December 31, 2020. Voice Services The company’s voice services include mobile voice services and wireline voice services. The company’s wireline voice services include local wireline services, domestic long distance wireline services and international long distance wireline services. Telecommunications Network Resource and Equipment Services The company’s telecommunications network resource and equipment services primarily include services relating to its optic fiber and circuits, such as the use of optic fiber and circuit; virtual private network (VPN); and the use of bandwidth. It offers telecommunications network resource and equipment services as certain of its overall telecommunications solutions to large enterprise customers, including government authorities, large corporations and institutions. Majority of these customers choose to use its circuits to form VPNs based on various technologies, and links their local area networks at different locations. The company also collaborates with various international telecommunications service providers to provide global communications services for multinational corporations. In addition, it provides network equipment to large enterprise customers. In 2020, the company continued to focus on government, financial and large enterprise customers. Its marketing efforts focused on providing global one-stop services, tailored services and total solutions to these customers. These customers could have a range of consulting and technical support services by contacting any of its designated account managers. Others The company’s other services primarily include sales and repairs and maintenance of equipment, resale of mobile services and property rental. Customers and Brand Management In 2020, the company continued to promote its full-service brand names under the brand ‘China Telecom’, and further improved the brand image of ‘China Telecom’ as an integrated intelligent information service operator through, among others, promoting China Telecom broadband, e-Surfing Smart Family (including Whole-home WiFi, e-Surfing Webcam, Family Cloud and other products), Hello 5G and e-Surfing Cloud services and products. Through providing contents to the company’s services on a multi-dimensional level and its coordinated marketing efforts, the company continues to improve the brand recognition and market influence for ‘China Telecom’. Wireline Voice Services: For its local wireline telephone services, the company charges usage fees based on call usage. The company offers international long distance wireline services through the international gateways of China Telecom Group. Mobile Voice Services: With respect to international roaming of the company’s mobile voice services, it provides roaming services to its customers and determines the roaming charges in accordance with roaming agreements between China Telecom Group and the international operators. Telecommunications Network Resource and Equipment Services: The company offers various promotion discounts for its customers who focus to upgrade to higher bandwidth services. Interconnection and Roaming Arrangements Interconnection Interconnection refers to various arrangements that permit the connection of the company’s networks to other mobile, wireline networks or internet backbone networks. These arrangements provide for the sharing and settlement of revenues from the base usage charges and, if applicable, roaming charges and domestic and international long distance charges, as well as the interconnection arrangement and settlement of internet backbone networks. China Telecom Group entered into interconnection settlement agreements with other telecommunications operators, including China United Network Communications Group Company Limited, China Mobile Communications Group Co., Ltd. and China Transport Telecommunication Information Group Co., Ltd. The company entered into an interconnection settlement agreement, as amended, with China Telecom Group, which allows its networks to interconnect with China Telecom Group’s networks, as well as networks of the other telecommunications operators, with whom China Telecom Group had interconnection arrangements. Its interconnection arrangements with China Telecom Group and other telecommunications operators enable its subscribers to communicate with the subscribers of those operators and to make and receive local, domestic and international long distance calls and to access the Internet backbone networks. All interconnection and settlement arrangements among public wireline telephone, mobile, and Internet networks in the PRC are governed by the Telecommunications Regulations promulgated by the State Council and the Telecommunications Regulations and the Administrative Rules on Interconnection between the Public Telecommunications Networks promulgated by the Ministry of Industry and Information Technology of the PRC. International Roaming The company provides international roaming services to its subscribers, which allow them to access mobile telecommunications services and use voice, SMS and data services, while they are physically outside of their registered service area but in the coverage areas of other mobile telecommunications networks in other countries and regions with which the company or its roaming provider have roaming arrangements. As of December 31, 2020, subscribers of the company’s mobile services could roam on mobile networks in approximately 200 countries and regions based on international roaming agreements between China Telecom Group and the local operators or roaming service providers. Strategy The key elements of the company's strategy include strengthening the landscape of cloud-network capabilities and building new infrastructure based on cloud-network integration; building a digitalized platform to enable digital transformation; promoting sci-tech innovation to accelerate the shift towards a sci-tech company; and deepening reforms on various fronts to inspire corporate vitality and expanding cooperation to forge ecological competitiveness. Trademarks The company conducts its business under the ‘China Telecom’ brand name and logo. China Telecom Group owns certain trademarks in the PRC, some of which have been registered with the former Trademark Office of the PRC State Administration for Industry and Commerce (the Trademark Office), and some of which are in the process of being registered with the Trademark Office. China Telecom Group has executed a trademark license agreement with the company. Under this agreement, China Telecom Group agreed to grant to the company and its subsidiaries the right to use these trademarks upon the completion of the registration on a royalty-free basis until December 31, 2021, which is renewable for three more years as the parties might agree. Competition The company competes against China Unicom (Hong Kong) Limited, China Mobile Limited and China Broadcasting Network Corporation Ltd in terms of fixed-line voice and broadband services. History China Telecom Corporation Limited was incorporated under PRC laws in 2002 as a joint stock company.