In 2010,China Telecom established the Overseas Development Department, enhancing the overseas business development. Having coordinated with all the overseas subsidiary companies, the Department conscientiously made the three-year plan by analyzing and summarizing the current overseas products, services, network resources, IT and the supporting capability and human resources, and the ever-changing global market in accordance with the group company’s overall strategy. The strategy position was clearly defined that China Telecom will be built as the global integrated information service provider with the remarkable Asia-Pacific regional advantages, and the strategic concept of developing at the Asia-Pacific as the centre will lead the business development globally, such that the strategic target for the overseas business value will reach the level of 10 billion yuan per year.
Overseas Market Development
In 2010, the global economic slowdown and evercompetitive global telecom market actually took adverse impact on the market price, which was kept at the low level, and the more tension was growing on the business development. However, with the joint efforts made by all the staff within the Department and the overseas companies, the overseas business revenue was kept at fast increase, and the revenue of the overseas subsidiaries increased almost 30% on the yearly basis, out of which the new overseas integrated information services and applications such as ICT, IDC increased by 90% with a bright future while the traditional core overseas business such as the international data service was kept at the fast increase.
China Telecom continued to expand overseas business strategically. By the end of 2010, we had established 23 overseas branch offices in 15 countries and regions, with the network PoPs located in 17 cities globally.
We newly established a branch office in Indonesia, Thailand, Australia and Brazil, and upgraded the representative offices in Canada and in Frankfurt of Germany to the subsidiary companies. We also had plans to set up the branches in Spain, South Africa, Taiwan, India and Argentina and upgrade the Moscow representative office to a Russian subsidiary. The overseas development capability of China Telecom was on the increase in more regions. In Vietnam, Middle Asia countries, Russia, India, Indonesia, we have the capability to compete with the first-class international business operators.
China Telecom made great efforts to coordinate internally to raise the supporting and service capability for the overseas business. In 2010, by strengthening the sales power, China Telecom actively supported the enterprises to expand business overseas for the “going globally” strategy, and explored the overseas customer market and made more efforts to win the operators’ market as well. The key services to be developed were the Internet transit and broadband-type service, attentions were also made on the value-added service. We pursued to maintain the highest service level while increasing the overseas revenue. Through green channel, great supports were given to the global networking for the enterprise customers, such as CNPC, Sinopec, Xinhua News Agency, CCTV, Huawei, ICBC, etc for their overseas business expansion and results were remarkable. Many sales marketing were made specially designed for the operator customers and enterprise customers. In June 2010, the Group company held “2010 Shanghai Operators Cooperation Forum” entitled as “Telecom will make life more enjoyable”, with 312 delegates from 83 operators around world participated in the forum. Mr. Wang Xiaochu, CEO of China Telecom, and Mr. Sun Kangmin, Vice President of China Telecom and other department leaders attended the forum, where China Telecom provided a new image among the international operators.
International Products and Products for Hong Kong, Macao and Taiwan
The cooperation scope for international business was enlarged continuously and product categories and capability were also on the increase. In 2010, China Telecom established a specially team for the overseas product management and development team, having made a product development plan (2011-2013) highlighting the development targets of mainly focusing on voice, Internet, broadband, data centre, ICT and information, etc. China Telecom developed and optimized the overseas IDC products and overseas ICT products, and IPLC, IEPL, IPVPN, etc., having made the network optimization on the Internet access related products and CN2 international network optimization. Also, pre-study was made on the VPLS and global virtual operator system, such that good preparation of the overseas product development was mad for year of 2011.
By the end of 2010, China Telecom carried out international Internet cooperation with 85 overseas telecom operators, with a total outbound bandwidth of 780Gbit/s, therefore, the international position of CHINANET was raised remarkably, being the top Internet provider in Asia-Pacific area and the world as well. China Telecom had data service cooperation with 42 operators in 24 countries and regions, thus providing the data service globally, including IPLC, FR, ATM, IPVPN and other corresponding valueadded products. China Telecom also established bilateral direct circuits with 69 telecom carriers in 40 countries and regions in the world, providing telephone voice service to the whole world.
By the end of 2010, China Telecom has constructed and taken part in 28 terrestrial fiber optic cable systems and 24 international submarine cable systems connecting every part of the world, with a total outbound bandwidth reaching 1349Gbit/s, 15% increase over the year of 2008.
More overseas network PoPs had been established, with new PoPs built in Singapore and Moscow for CHINANET and in Hanoi, Ho Chi Minh City, Toronto, Dubai for CN2, and European PoP for CN2 expanded, Americas PoP expanded for CHINANET, therefore, the global coverage capability was raised to a new level.
In 2010, China Telecom put more investment on the submarine cable construction, having signed C&MA agreement for a new Asia Cable (SJC). After the completion of this project, China Telecom will own and operate the third landing station (in Hongkong) in addition to Chongming and Shantou cable stations, which will greatly enhance China Telecom’s global network coverage and safety redundancy and effectively guarantee the good connectivity within Asia-Pacific area.
With the help of the Prime Minister Meeting mechanism between China and Pakistan, in June 2010, China Telecom and SCO of Pakistan decided and signed the C&MA Agreement for China-Pakistan terrestrial optical fiber cable. After completion of this cable, the telecommunications between China and Pakistan will be totally changed. In October 2010, China Telecom successfully commissioned a fiber cable with Kyrgyzstan, which indicated that the breakthrough had been made for the Middle-Asia information highway and which paved a way for the Internet connection and voice service to the Middle-Asia countries. With many land and submarine cable systems constructed, China Telecom has completed a comprehensive network in Asia-Pacific and could act as a gateway and a bridge for all the operators in the other continents of the world to establish communications with many countries bordering with China.
In 2010, China Telecom enhanced the internationalcooperation and improved the international roaming services. By cooperating with Vodafone, China Telecom issued the Tianyi International Card (new type) service, expanding its roaming its roaming coverage to 258 countries/regions and having greatly reduced the roaming charges for the customers, the average roaming charge going down by 50%, the maximum by 80%. China Telecom endeavored to raise the service level for the visiting roaming customers. China Telecom also took series actions to optimize all the processes right from the experiences of the customers for improving the roaming service quality. With that, the VIP customers’ international communications were guaranteed and most convenient and reliable services were made available to them. China Telecom paid more attention onto the testing work for international roaming network and services and resolved the problems immediately after they were identified. Therefore, the roaming experience of the customers was greatly improved.
In addition, we have adjusted the tariff policy for the international roaming that we adopted the policy of charging the same rate for CDMA and GSM roamers except few countries and regions where we provide more favorable tariff rate and all these help the customers to use and understand easily. For the **133 international call back service, we unified the tariff of calling back Mainland China with the roaming charge and received good comments from the customers. With continuous efforts made, the competitiveness of China Telecom’s roaming service was upgraded significantly.
Cooperation with the International Organizations and Multilateral Cooperation
For many years, China Telecom is actively taking part in the research and formulation of the standards regarding the international telecom technology and services and the activities of ITU’s Study Groups, and the multilateral co-operations have been further enhanced.
From the practical point of views, China Telecom paid more attention on the following-up study and the research work in the new foresighted technology, such as the mobile technology, services and network, and also on the study of the IPTV development strategy and business model, and close attention on the development of Cloud Computing, LTE, and the NGN technology, its new product development and standards formulation.
In the past years, China Telecom continued to send delegates to assume 11 positions of editors in the ITU-T SG, and four Rapporteur’s positions, and one co-chairman of the working group. In addition to the active participation in the ITU activities, China Telecom also participated in a dozen of international telecom standard forums.
In addition, China Telecom enhanced the multilateral international cooperation. At the end of June 2010, China Telecom successfully held a “CDMA Operators High-Level Round-Table Meeting”, with high-level leaders coming from 12 CDMA operators participated in the meeting. CDG and Qualcomm also participated in the meeting. During the meeting, China Telecom together with other 10 operators signed a “MOU for Promoting Closer Cooperation between the CDMA Operators”.
The followings are the main international organizations/forums in which China Telecom has actively taken part and has the membership:
-International Telecommunication Union (ITU, including ITU-T, ITU-R and ITU-D)
-Pacific Telecommunications Council (PTC)
-Asia-Pacific Network Information Center (APNIC)
-Pacific-Indian Ocean Restoration Committee (PIRC)
-Optic Internet Forum (OIF)
-Open Mobile Association (OMA)
-Quality Excellence for Suppliers of Telecommunications Forum (QuEST)
-Telecommunications Management Forum (TMF)
-Metro Ethernet Forum (MEF)
-Broadband Forum (Broadband Forum)
-International Cable Protection Committee (ICPC)
-European Telecommunications Standards Institute (ETSI)
-3G Partner (3GPP)
-Worldwide Interoperability for Microwave Access (WiMax)
-Full Service Access Network (FSAN)
-CDMA Development Group (CDG)
-The Femto Forum (Femto)
-International Forum on ANSI Standards Technology (IFAST).
-The Institute of Electrical and Electronics Engineers (IEEE)
-Global e-Sustainability Initiative (GeSI)
-GSM Association (GSMA)