China Telecom has always paid high attention to the human resources development and taken this as the most important resource of the corporation. For many years, by adhering to the people-centered concept, China Telecom has continuously deepened the system reform and innovation for the human resource, enhanced the talents cultivation and optimized the human resource structure so as to provide strong support to the corporate reform and development with guaranteed human resources.

General Information about our Staff

As of the end of 2008, China Telecom had 498.4 thousand staff members, from which 314.5 thousand were from China Telecom Corporation Limited. The following table shows the breakdowns and proportions in the total.

Implement the Total Solution for the Human Resource and Push forward the Management Innovation

In accordance with the requirement of the new informatization strategy of focusing on the customer, China Telecom started its trial operation of providing the total solution for the human resources at six subsidiary companies including Shanghai, Jiangsu, etc. from 2008. The total solution means that we focus on the requirements of the different category of the customers; take the particular positions and the capability qualifications as the basis, take the performance management, salary and bonus as the core contents, emphasize on the promotion of the employees¡¯ capabilities, promote the enterprise and the employee development altogether. After the trial operation, we have achieved good results, having found out a solution for the differential and personalized management, therefore, realizing the differential management of the human resources.

Having successfully completed the restructuring work with China Unicom and driven up the enterprise transformation and all-service operation

Taking into consideration of the enterprise transformation and all-service operation, and after consultations with China Unicom, we have smoothly completed the position identification and rearrangement for those coming from China Unicom. In the restructuring, we have in total accepted 19,600 contracted employees, 12500 dispatched employees from China Unicom. Having done tremendous detailed work, we have smoothly made the proper arrangement for the incoming employees and provided good conditions for the unity of the employees to realize the enterprise target for the steady development.

Greatly enhance nurturing our senior executives and continuously improve the capabilities of the leaders of the corporation

China Telecom pays special attention to the training of the management team. We have made a lot of the adjustments for the management team by constructing the ¡°Four Goods¡± leader team. And also we have enhanced the construction of the leader team to help them become capable of leading the team for the enterprise transformation and the all-service operations by providing various training programs on a large scale. After deep study of the entrepreneurs¡¯spirits and the detailed and quantified analyses of the elements of the entrepreneurs¡¯spirits, we have greatly improved the scientific management for the team leader.

China Telecom pays high attention to the training to the major senior management working at the provincial-level subsidiary companies. The training program has been organized for them for the first time so as to raise their leading and executive power. In order to enhance the construction of the senior management at the city (or district) level and to raise their executive power, special training programs have been arranged in 2008 for 379 general managers at intervals, who are working at the city (or district) level. Furthermore, the corporation intensified the management of the leaders in support and updated their data base. The assessment standards for the leaders in support were formulated to realize the dynamic management for them.

Great attention was paid to the persons with ability in order to provide the talents for the all-service operations

In response to the requirement to the leaders by the corporate transformation, China Telecom strengthened the team building of the persons with good ability for the VIP customers, Best Tone service, the maintenance team, wireless optimization team and the informatization team so as to support the enterprise transformation and the all-service operations. New teams have been arranged for the maintenance team, informatization team, financial team and sales team at the level of the group company. China Telecom has set up the personnel exchange mechanism by organizing the personnel exchange program between the east and west provinces, between the headquarters and the subsidiary companies and amongst the local networks, therefore, all these efforts greatly helped the employees in the business career development.

Enhance and standardize the labour management to help create the harmonized labor relationship.

Having thoroughly implemented the new¡°Labour Contract¡±and the ¡°Regulations for Implementing the Labor Contract¡±, China Telecom perfected its employment system and standardized all kinds of labour contracts in order to establish the harmonized labor Human Resources Developmentrelationship. China Telecom actively carried out the reform on the employment system, emphasized on the employment planning, including those for the main business and subline business, and those for the public company and for the group company, therefore, clarified the relationship between the main business and subline business for the manpower dispatch. We also explored all kinds of employment and outsourcing service, external cooperation to cater for the different work positions, and policy and to support the enterprise in its transformation and meet the requirement for all-service operations.

Optimize the cost for the manpower and carry out the salary and incentives mechanism for the differentials

We have made the manpower cost model, and made the connection between the manpower cost and the economic targets achieved, and brought the value direction to the full. In order to raise the investment and harvest ratio, we put more resource to the high-efficient services, transformation services and the key areas. In accordance with the characteristics and differences of each company and department, we have explored the category management of the manpower cost. As we emphasized the incentive and salary direction, we have established differential salary plan for the different category position. We continue to improve the flexible distribution systems by perfecting the contracted salary and income commission scheme (allocating a certain percentage from an agreed sum of money), tendering system, negotiated salary, and virtual stock value increase.

Vigorously organize the employee training programs on a large scale in order to raise the capability of the employees for the enterprise transformation and all-service operations

We have carried out the C-level training programs for the general managers at the county level. In 2008, there were 3000 man-day training programs held. At the same time, as a trial, D-leveltraining programs were held for the directors at the district and branch offices and the team leaders. China Telecom organized 24 classes as the special training to the key technical talents for the CDMA network and services, and by utilizing the platform of China Telecommunications College over the Internet, more 7500 technical specialists participated in the training program. Having made full usage of the collage on the Internet, China Telecom organized all the employees to study on line. As of the end of 2008, there were 169 thousand employees (more than 40 hours/per person) participated in the training programs, the training rate reached 62% with an average of 9.7 hours for each employee trained. In 2008, the registered employees at the China Telecom College over the Internet were increased to 364 thousand, and the average on-line study time is 80.25 hours. There are 4727 courses of the electrical text models available now at the Internet, and there are 10218 enterprise case studies for reference. The application of the Internet College greatly met the employees¡¯study demands and the training purpose for various categories of posts in the company.