1. TELECOMMUNICATION MARKET Chong Li manager HR Telecom of China

2. Market Introduction Government Initiatives Market Characteristics

3. M ARKET I NTRODUCTION Huge Customer potential Teledensity still being 75% and rural Teledensity 50%. The broadband subscribers grew from 108 million in 2006 to196 million as on 31 May 2010 and about 230 million, at the end of the December 2010.

4. H IGH G ROWTH RATE Wireless subscribers growing at a of 60 per cent per annum since 2003.

5. A LLOWED FDI LIMIT RANGING FROM 74% TO 100% The total FDI equity inflows in telecom sector have been US$ 2223 million during April- November 2010-10

6. H IGH RETURN ON I NVESTMENT Easier to create economies of scale thereby increasing return on investment

7. L IBERALIZATION EFFORTS BY G OV. The share of private sector in total telephone connections is now 82.33% as per the latest statistics available for December 2010 as against a meagre 5% in 1999.

8. L OWER CAPITAL EXPENDITURE The China telecom market is a high density area, which means more population per tower. This means lower capital expenditure cost.

9. 3G T ELECOM SERVICES AND 4G SERVICES More Quality Service Mobile Number Portability will force the Service provider to improve their quality to avoid losing subscribers

10. V ALUE ADDED S ERVICES (VAS) The mobile value added services include, text or SMS, menu based services, downloading of music or ringtones, mobile TV, videos, streaming, sophisticated m-commerce applications etc. Mobile banking, Mobile Ticketing etc

11. B OOST TO T ELECOM M ANUFACTURING C OMPANIES Production of telecom equipments in value terms has increased from Rs. 412700 million (2007-08) to Rs.488000 million during 2008-09 and expected to increase to Rs. 575840 million during 2009-10.

12. T ELECOM E QUIPMENT E XPORTS The China telecom industry is expected to reach a size of Rs 344,921 crore by 2012 at a growth rate of over 26 per cent, and generate employment opportunities for about 10 million people during the same period. The sector would create direct employment for 2.8 million people and for 7 million indirectly, according to a Frost and Sullivan report.

13. T ELECOM INVOLVED Interactive user terminal (vs. burglar alarm or webcam) Personal terminal (vs. car, office, home) "Real reality" (vs. virtual reality) 100 kbits everywhere (vs. 100Mbits somewhere) Several visual input types (one-handed, pen, keyboard) Multiservice terminals (PS+CS, purse, GPS, FM radio, …) Extensions to cellular (WLAN, BlueTooth, …)

15. M OBILE I NTERNET

16. G OVERNMENT I NITIATIVES China as a developing nation needs the best infrastructure for telecom services In order to develop the telecommunications infrastructure, the Chinese government is expected to make an investment the government has given major emphasis to the development of rural communication network in the next five year

18. Since taking power in July 2001, the government of Prime Minister maintained and focus on macroeconomic stability. While keeping a political eye on continued high (albeit declining) unemployment and low incomes. In addition to pursuing macroeconomic stability as its first priority, the Government is taking further steps to attract foreign investment and stimulate growth

19. The Government has delivered strong, steady GDP growth in real terms. Economic expansion has accelerated in 2000 with estimated real GDP growth surging to 8.3 precent. His pace of growth makes China one of the fastest growing economies in World. Major Political Issues Affecting the Business Climate

20. Major Political Issues Affecting the Business Climate. The Government has continued their reform policies initiated by the preceding government. However, reforms have not born fruits quickly as many had hoped. So the political will stabilization

21. M ARKET C HARACTERISTICS anomic growth is considered as one of the major factors for the development of telecom Accelerating growth in technology has become a major factor for the development of telecom Bundled service offered to households has become increasingly attractive and bringing huge demand for telecom services

22. Economic growth in China has created huge demand for communication service. And there huge market and benefit are waiting you developing.

23. Thank you for your listening.