1. Prof. LU Ting-Jie Prof. LU Ting-Jie (Ph.D of Kyoto university, Japan) Dean of Economics & Management School, Beijing University of Posts and Telecom Mobile Market in China

2. BUPT- Biz Center 北京邮电大学 吕廷杰  Brief Introduction  Some Key Points  Opportunity and Challenges Outline

3. BUPT- Biz Center 北京邮电大学 吕廷杰  Brief Introduction

4. BUPT- Biz Center 北京邮电大学 吕廷杰 DATA ( by the end of Dec. 2003)  No. of Telecom Sub. 532mil (420+112mil ）， among them, (592mil, by the end of Jun)  Fixed line is 263mil （ 214+49mil),(285mil)  Mobile is 269mil （ 206+63mil), (307mil)  No. of Internet Sub. 72.5mil,(87mil)  Total Income of Telecom: 461 bil RMB (53.3=50+3.3bil $ (Less than AT&T 68.0bil $)  Proportion in GDP is 3. 95 % (in 2005, 600bil RMB => 70.0bil $, Proportion in GDP is 5%)  Points: huge market, Low value!

5. BUPT- Biz Center 北京邮电大学 吕廷杰 STRUCTURE OF CHINESE TELECOM INDUSTRY MII (former MPT) CSAM STATE OWNER BUREAU OF TELECOM ADMINISTRATION EACH PROVINCE EXPEDIT INSTITUTION REGULATOR

6. BUPT- Biz Center 北京邮电大学 吕廷杰 In more detail Bil. 11669.4 461.00141.375.1170.266.9 10239.8411.58135.367.0163.750.3 place—— 2314 Tel. CT CN CM CU

7. BUPT- Biz Center 北京邮电大学 吕廷杰  Some Key Points

8. BUPT- Biz Center 北京邮电大学 吕廷杰 GDP increaseIncome of Telecom Ind. %

9. BUPT- Biz Center 北京邮电大学 吕廷杰 A Comparison of penetration (%)

10. BUPT- Biz Center 北京邮电大学 吕廷杰 Subsection of income （ 2003.12 ） Among long dist. service

11. BUPT- Biz Center 北京邮电大学 吕廷杰 History of Mobile Market in China  Beginning from 1987  Introduction of GSM in 1994  Introduction of CDMA & GPRS in 2000  Introduction of 3G in 2005 ?  Licenses: China Mobile, China Unicom  Potentials: China Telecom, China Netcom

12. BUPT- Biz Center 北京邮电大学 吕廷杰  Opportunity and Challenges

13. BUPT- Biz Center 北京邮电大学 吕廷杰 Opportunity in 3G times for foreign investment!

14. BUPT- Biz Center 北京邮电大学 吕廷杰  INVESTIMENT TO STOCK MARKET  VENTURE CAPITAL  JOINTVENTURE COMPANIES  OUTSOURCING SERVICES

15. BUPT- Biz Center 北京邮电大学 吕廷杰 Who will dominant the 3G Times  CMC: GSM=>GSM+GPRS=  CU: GSM=> =  CT: PHS=>  Who will make the decision of 3G licence?  Time for market applications: not earlier than year 2005 TD-SCDMA WCDMA GSM NCDMA CDMA2000 WCDMA TD-SCDMA WCDMA + CDMA2000

16. BUPT- Biz Center 北京邮电大学 吕廷杰 Thank You! Q & A