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China Entercom (CEC)
 Briefing Information

        (Strictly
      Confidential)
Company Overview
ESTABLISHMENT    Ride on basic telecom operators' infrastructure to build a
                 nationwide IPVPN network platform in year 2000


SHAREHOLDER      CITIC GROUP            : 51%
                 SASAC                  : 10%
STRUCTURES
                 Other investors        : 39%

CORE BUSINESS    Offers IPVPN & wide range of value-added telecom services
                 and integrated IT solutions

LICENSE          1st Service Provider acquires the formal license by Ministry of
                 Information Industry (MII) of China Government to offer the
(LEGAL STATUS)
                 cross-border MPLS-VPN service in Hong Kong and China 347
                 cities;
Major Shareholder: CITIC
     Established in 1979 by Rong Yiren,
     former Vice President of PRC
     Grown into a large multinational conglomerate with over 44 subsidiaries,
     Presences in Hong Kong, United States, Canada, Australia and New
     Zealand & representative office in Tokyo, New York and Frankfurt
     Core business from finance, strategic investment to service sectors
     By end of 2006, total asset at RMB 1 Trillion (USD 140 Billion)

Financial Business                              IT Industry                        Others
•   China CITIC Bank                            •   Asia Satellite                 •   Bohai Aluminum Industries Ltd.
•   CITIC Holdings                                  Telecommunications Co., Ltd.   •   CITIC Construction
•   CITIC Int'l Financial Holdings Ltd.         •   CITIC Guoan Group              •   CITIC Heavy Machinery Inc.
•   CITIC Ka Wah Bank                           •   CITIC Networks Co., Ltd        •   CITIC Int'l Cooperation Co., Ltd.
•   CITIC Prudential Life Insurance Co., Ltd.   •   Great Wall Broadband           •   CITIC Machinery Manufacturing Inc.
•   CITIC Securities Co., Ltd.                      Network Service Co., Ltd.      •   CITIC REAL ESTATE Co., Ltd.
•   CITIC Trust & Investment Co., Ltd.          •   China Entercom
Government Shareholder: SASAC
SASAC - Supervision and Administration of the State-owned Assets
Commission (previously SETC)
Government Bureau under State Council
Execute Government’s mandate according to law and guidelines:
    Separating government administration from enterprise management
    Separating ownership from management power
    “Investor” role on behalf of the State’s to manage assets of 161 State-owned Enterprises (SOE)
    Pushing forward the reforms and restructures of these SOEs
13 SOEs are listed in Fortune 500


                                  Baosteel Group                      China State Construction
                                  China First Automotive Works        China Telecommunications
                                  China Mobile Communications         COFCO
                                  China National petroleum            Sinochem
                                  China Railway Construction          Sinopec
                                  China Railway Engineering           State Grid
                                  China Southern Power Grid
Licenses Acquired

CHINA                          Nation-wide ISP

First official IP-VPN
                               Nation-wide IPVPN
  license from MIIT
                               Nation-wide Call Center
Granted in Jan 2008

                               Nation-wide Multi-communications

                               Nation-wide On-line Data Transaction

HONG KONG                      External Telecom Services (ETS)

                               Public Non-Exclusive Telecom Service (PNETS)
MIIT : Ministry of Industry and Information Technology of the People’s Republic of China
Business Cooperation with Local Carriers
CIPCA Certificate


CIPCC IP Communication
Conference China is a prestigious
conference in telecommunication
industry attracting numerous
industry clients, carriers, channel
agents and manufacturers to
participate in every year. In the first
round of voting for the CIPCA 2008
Best IP VPN Service Provider, CEC
had defeated its main competitors in
the region.
With more than half a year voting
period, CEC finally was awarded the
CIPCA 2008 Best IP VPN Service
Provider Award.
Strong & Exclusive Support from CITIC Group


                               Mr. Luo Ning, the
                               Director and Assistant
                               General Manager of
                               CITIC Group, said:
                               ’CEC is by far the
                               only licensed
                               Telecom Company of
                               CITIC Group
                               providing IP- VPN
                               solutions to
                               enterprises. CITIC
                               Group will constantly
                               support CEC by
                               sharing CITIC
                               Group’s resources’.




                                                  8
Government accounts and Corp Customers




BURBERRY

 PRADA
China Entercom
 Products Insights
        &
Service Differences
Product Road Map


Application         Voice VPN,
 Services           Video VPN,
                 Desktop Managed
                      Service

Managed           Connected CPE,
Services       CeWebMon, Data Center

                 CEC MPLS IPVPN,
                  Internet Access
Network
Services        Layer 2 VPN Service

                Managed Leased Line
CEC MPLS-VPN

   Edge Technology with
      high performance                   PE


Multi applications on the same                                   PE
access to maximize the utilization
of network resources                     PE



Any to any connectivity
                                                            PE

                                              MPLS IP Network
SLA Guarantee                             with the Diffserv Code
CEC MPLS-VPN CoS
Service Class     Applications

     CoS 5
                       Voice
  ( Premium )

     CoS 4       Video conferencing,
  ( Business )    Video streaming

     CoS 3       ERP, SAP, Siebel,
  ( Business )    PeopleSoft, POS

     CoS 2        Telnet, TN3270
  ( Business )         Citrix

                   FTP, Database
     CoS 1        Synchronization,
  ( Standard )        E-Mail,
                   Web browsing
CEC MPLS-VPN
 Edge Technology with high
 Performance
 Scalable


                     High network
                     availability
                                                Guaranteed
                     guarantee
Reliability

                     CoS Guarantee
                     by SLA
                             Premium
                             Business
                             Standard
Service Coverage in China
SLA Commitment
   Availability
                                         99.9%
  (PoP to PoP)

   Latency
 (PoP to PoP                           40~140ms
 CEC-On-net)
Backbone Packet
                Gold (Premium) :   Silver (Business):   Bronze (Standard):
   Delivery
                  ≤ 99.95%         ≤ 99.92%             ≤ 99.9%

 Network Jitter   Gold :           Silver :             Bronze :
                  ≤ 10ms           ≤ 15ms               ≤ 20ms
CEC MPLS-VPN Value-added Solution


              CEC MPLS-Back-up
                 Three Back up options to enhance service quality

 TAILORED
 TO           CEC MPLS-Remote
                 Connect to HQ over Internet with IPSec solution
 YOUR NEEDS
                 for remote and virtual offices


              CEC MPLS-Internet Access
                 Easy internet access through MPLS VPN to fully
                 utilize bandwidth and save costs
CEC MPLS Dual Back-up

Dual Link Backup Solution
 Dual link from 2 different providers:
 when the primary link fails, traffic will
 fall back to backup link



     CPE Router                            PE Router
                      Primary Local Loop
                                                       CEC MPLS
                        Backup Link
CEC MPLS IPSec Back-up
IPSec Backup Solution
  Backup path is built up through the Internet
  by IPSec tunnel, data will go through the
  encrypted tunnel if primary path fails.



       CPE Router                         PE Router
                     Primary Local Loop
                                                      CEC MPLS

                       Internet
       ADSL Router

                        IPSec Tunnel
CEC MPLS-Remote
        Solution for remote office and mobile user
        to connect to Headquarters through Internet

    •   IPSec hardware and software provided by
        CEC
                                                         Remote Office
        High security with IPSec data encryption


        7x24 Network Support
                                                                IPSec
                                                               Gateway



                                                                  IPSec
Headquarters                                           Internet   Tunnel
                                           CEC MPLS
                                            Network                        Mobile
                                                      IPSec                 User
                                                      Client
CEC MPLS-Internet Access

    Internet access solution for CEC MPLS
    VPN users

•   Traffic to Internet will share the same local

    access link and router
    Single Managed Gateway for your Internet
    traffic




                                                    CEC MPLS   Internet
                                                     Network
Differentiation
CEC Differentiation
1st Service Provider acquired the formal license by MII for providing IP-VPN in
China
Directed by the largest China flagship – Citic Group with the support of SASAC
& State Council
Good relationship with those stated-owned enterprises (SOE) carriers such as
China Telecom, China Netcom & China Unicom;
CEC Direct Technical Support;
Provide One-Stop Shopping (OSS) & Total IP-VPN Solution for cross-border
network in Greater China & Hong Kong
Focus development & resource on MPLS technology and service, enhanced
Value-added solution along with the core MPLS platform;
Carrier Neutral – Flexible on Local access
    China Telecom;
    China Netcom;
    China Unicom;
    TieTong;
    Other Metropolitan access providers;
Direct One-Stop Support by CEC:
  CEC committed to prevent any interruption of our service offered
  CEC NOC would proactively monitor the whole circuit for the customers with
  activating remote diagnostic checking
  CEC helpdesk would provide advice by phone or E-mail, including advice to
  the checking carried out by client if possible
  The customer can report the faults to CEC technical support team by email
  or phone (CEC 24 x 7 Helpdesk Hotline)
  CEC employed committed fault handling procedure
  CEC own technical representative presents in all POP cities of the customer’s
  connection
  Total solution provided by CEC with managed Cisco CPE, last mile
  Management & MPLS Core network Management
Managed Service
     for
CEC MPLS-VPN
CeWebMon

VPN Performance
VPN Port Utilization
CoS Traffic Distribution                             S
                                                     L
CPE Router Performance
CPU Utilization                 CeWebMon             A
Memory Utilization         Online Reporting System
CeWebMon

              Network
             Management          Internet
               Center


                 Manage Customer’s
                 Network and CPE 7*24
                                            CeWebMon
                                            Online Report

Beijing
          CEC MPLS
           Network Hong Kong
             Shanghai

                Customer’s VPN Network
Thank You

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Mei Yick Offer MPLS

  • 1. China Entercom (CEC) Briefing Information (Strictly Confidential)
  • 2. Company Overview ESTABLISHMENT Ride on basic telecom operators' infrastructure to build a nationwide IPVPN network platform in year 2000 SHAREHOLDER CITIC GROUP : 51% SASAC : 10% STRUCTURES Other investors : 39% CORE BUSINESS Offers IPVPN & wide range of value-added telecom services and integrated IT solutions LICENSE 1st Service Provider acquires the formal license by Ministry of Information Industry (MII) of China Government to offer the (LEGAL STATUS) cross-border MPLS-VPN service in Hong Kong and China 347 cities;
  • 3. Major Shareholder: CITIC Established in 1979 by Rong Yiren, former Vice President of PRC Grown into a large multinational conglomerate with over 44 subsidiaries, Presences in Hong Kong, United States, Canada, Australia and New Zealand & representative office in Tokyo, New York and Frankfurt Core business from finance, strategic investment to service sectors By end of 2006, total asset at RMB 1 Trillion (USD 140 Billion) Financial Business IT Industry Others • China CITIC Bank • Asia Satellite • Bohai Aluminum Industries Ltd. • CITIC Holdings Telecommunications Co., Ltd. • CITIC Construction • CITIC Int'l Financial Holdings Ltd. • CITIC Guoan Group • CITIC Heavy Machinery Inc. • CITIC Ka Wah Bank • CITIC Networks Co., Ltd • CITIC Int'l Cooperation Co., Ltd. • CITIC Prudential Life Insurance Co., Ltd. • Great Wall Broadband • CITIC Machinery Manufacturing Inc. • CITIC Securities Co., Ltd. Network Service Co., Ltd. • CITIC REAL ESTATE Co., Ltd. • CITIC Trust & Investment Co., Ltd. • China Entercom
  • 4. Government Shareholder: SASAC SASAC - Supervision and Administration of the State-owned Assets Commission (previously SETC) Government Bureau under State Council Execute Government’s mandate according to law and guidelines: Separating government administration from enterprise management Separating ownership from management power “Investor” role on behalf of the State’s to manage assets of 161 State-owned Enterprises (SOE) Pushing forward the reforms and restructures of these SOEs 13 SOEs are listed in Fortune 500 Baosteel Group China State Construction China First Automotive Works China Telecommunications China Mobile Communications COFCO China National petroleum Sinochem China Railway Construction Sinopec China Railway Engineering State Grid China Southern Power Grid
  • 5. Licenses Acquired CHINA Nation-wide ISP First official IP-VPN Nation-wide IPVPN license from MIIT Nation-wide Call Center Granted in Jan 2008 Nation-wide Multi-communications Nation-wide On-line Data Transaction HONG KONG External Telecom Services (ETS) Public Non-Exclusive Telecom Service (PNETS) MIIT : Ministry of Industry and Information Technology of the People’s Republic of China
  • 6. Business Cooperation with Local Carriers
  • 7. CIPCA Certificate CIPCC IP Communication Conference China is a prestigious conference in telecommunication industry attracting numerous industry clients, carriers, channel agents and manufacturers to participate in every year. In the first round of voting for the CIPCA 2008 Best IP VPN Service Provider, CEC had defeated its main competitors in the region. With more than half a year voting period, CEC finally was awarded the CIPCA 2008 Best IP VPN Service Provider Award.
  • 8. Strong & Exclusive Support from CITIC Group Mr. Luo Ning, the Director and Assistant General Manager of CITIC Group, said: ’CEC is by far the only licensed Telecom Company of CITIC Group providing IP- VPN solutions to enterprises. CITIC Group will constantly support CEC by sharing CITIC Group’s resources’. 8
  • 9. Government accounts and Corp Customers BURBERRY PRADA
  • 10. China Entercom Products Insights & Service Differences
  • 11. Product Road Map Application Voice VPN, Services Video VPN, Desktop Managed Service Managed Connected CPE, Services CeWebMon, Data Center CEC MPLS IPVPN, Internet Access Network Services Layer 2 VPN Service Managed Leased Line
  • 12. CEC MPLS-VPN Edge Technology with high performance PE Multi applications on the same PE access to maximize the utilization of network resources PE Any to any connectivity PE MPLS IP Network SLA Guarantee with the Diffserv Code
  • 13. CEC MPLS-VPN CoS Service Class Applications CoS 5 Voice ( Premium ) CoS 4 Video conferencing, ( Business ) Video streaming CoS 3 ERP, SAP, Siebel, ( Business ) PeopleSoft, POS CoS 2 Telnet, TN3270 ( Business ) Citrix FTP, Database CoS 1 Synchronization, ( Standard ) E-Mail, Web browsing
  • 14. CEC MPLS-VPN Edge Technology with high Performance Scalable High network availability Guaranteed guarantee Reliability CoS Guarantee by SLA Premium Business Standard
  • 16. SLA Commitment Availability 99.9% (PoP to PoP) Latency (PoP to PoP 40~140ms CEC-On-net) Backbone Packet Gold (Premium) : Silver (Business): Bronze (Standard): Delivery ≤ 99.95% ≤ 99.92% ≤ 99.9% Network Jitter Gold : Silver : Bronze : ≤ 10ms ≤ 15ms ≤ 20ms
  • 17. CEC MPLS-VPN Value-added Solution CEC MPLS-Back-up Three Back up options to enhance service quality TAILORED TO CEC MPLS-Remote Connect to HQ over Internet with IPSec solution YOUR NEEDS for remote and virtual offices CEC MPLS-Internet Access Easy internet access through MPLS VPN to fully utilize bandwidth and save costs
  • 18. CEC MPLS Dual Back-up Dual Link Backup Solution Dual link from 2 different providers: when the primary link fails, traffic will fall back to backup link CPE Router PE Router Primary Local Loop CEC MPLS Backup Link
  • 19. CEC MPLS IPSec Back-up IPSec Backup Solution Backup path is built up through the Internet by IPSec tunnel, data will go through the encrypted tunnel if primary path fails. CPE Router PE Router Primary Local Loop CEC MPLS Internet ADSL Router IPSec Tunnel
  • 20. CEC MPLS-Remote Solution for remote office and mobile user to connect to Headquarters through Internet • IPSec hardware and software provided by CEC Remote Office High security with IPSec data encryption 7x24 Network Support IPSec Gateway IPSec Headquarters Internet Tunnel CEC MPLS Network Mobile IPSec User Client
  • 21. CEC MPLS-Internet Access Internet access solution for CEC MPLS VPN users • Traffic to Internet will share the same local access link and router Single Managed Gateway for your Internet traffic CEC MPLS Internet Network
  • 23. CEC Differentiation 1st Service Provider acquired the formal license by MII for providing IP-VPN in China Directed by the largest China flagship – Citic Group with the support of SASAC & State Council Good relationship with those stated-owned enterprises (SOE) carriers such as China Telecom, China Netcom & China Unicom; CEC Direct Technical Support; Provide One-Stop Shopping (OSS) & Total IP-VPN Solution for cross-border network in Greater China & Hong Kong Focus development & resource on MPLS technology and service, enhanced Value-added solution along with the core MPLS platform; Carrier Neutral – Flexible on Local access China Telecom; China Netcom; China Unicom; TieTong; Other Metropolitan access providers;
  • 24. Direct One-Stop Support by CEC: CEC committed to prevent any interruption of our service offered CEC NOC would proactively monitor the whole circuit for the customers with activating remote diagnostic checking CEC helpdesk would provide advice by phone or E-mail, including advice to the checking carried out by client if possible The customer can report the faults to CEC technical support team by email or phone (CEC 24 x 7 Helpdesk Hotline) CEC employed committed fault handling procedure CEC own technical representative presents in all POP cities of the customer’s connection Total solution provided by CEC with managed Cisco CPE, last mile Management & MPLS Core network Management
  • 25. Managed Service for CEC MPLS-VPN
  • 26. CeWebMon VPN Performance VPN Port Utilization CoS Traffic Distribution S L CPE Router Performance CPU Utilization CeWebMon A Memory Utilization Online Reporting System
  • 27. CeWebMon Network Management Internet Center Manage Customer’s Network and CPE 7*24 CeWebMon Online Report Beijing CEC MPLS Network Hong Kong Shanghai Customer’s VPN Network