Sustainable Infrastructure for Explosive China Internet Growth by Lynn Dai

1. Sustainable Infrastructure
for Explosive China Internet Growth
Nov 2013
China
Telecom
Global
Limited

2. Who are we ?
World's
largest
fixed
line
operator
with
over
162
Million
access
lines
in
service;
World's
largest
broadband
operator
with
92
Million
subscribers;
World's
largest
CDMA
mobile
operator,
more
than
165
Million
subscribers,
in
which
more
than
74
Million
is
3G
subscribers
;
World‘s
largest
opDcal
fiber
network
-­‐
83000
kilometers
long；
OperaDng
revenues
in
2012
reached
USD
45
Billion
with
an
increase
of
15.5%；
Listed
in
both
New
York
and
Hong
Kong
Stock
Exchange.
China
Telecom
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Limited

3. About China Telecom
Awarded“Overall
Best
Managed
Company
in
Asia” for
4
years
since
2010
Ranked
139th
in
Forbes
Global
2000
(2012)
Ranked
182nd
in
Fortune
Global
500
(2012)
“Overall
Best
Managed
Company
in
Asia” for
4
years
consecuCvely
“Best
Managed
Company
in
Asia”
EuroMoney,
yearly
of
2010，2011，2012，2013
“Best
Managed
Company
in
Asia
Telecom
Sector”
Finance
Asia
,
yearly
of
2010，2011，2012，2013
“Most
Honored
Companies”
“The
Best
of
Asia”
Ins8tu8onal
Investor,
2011，2012
Corporate
Governance,
2010，2011，2012，2013
China
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4. Key Trends and Challenges
China Internet Market: Full of Vitality
Mobile Internet: Dramatic Growth
Global Internet: More for China
China
Telecom
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5. China Internet Market: Full of Vitality
! Till
June
of
2013,
total
Internet
user
in
China
reaches
591 million,
with
a
penetraDon
rate
of
44.1%.
China
Internet
User
and
Internet
PenetraCon
Rate,
(0000s),
2009.12-­‐2013.6
28.9%
2009.12
31.8%
2010.6
34.3%
2010.12
36.2%
2011.6
Internet
User
38.3%
39.9%
2011.12
42.1%
2012.6
44.1%
591
2012.12
2013.6
Internet
PenetraDon
Rate
Source：CNNIC

China
Telecom
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6. Mobile Internet: Dramatic Growth
! Mobile
broadband
connecDons
is
expected
to
reach
543 million in
2016,
2.2 times
of
the
fixed
broadband
subscribers.
China
Fixed
and
Mobile
Broadband
Subscribers
Forecasts,
(K),
2009-­‐2016
542,700
244,530
110,260
10,220
2009
2010
2011
2012
2013
Fixed
Broadband
Subscribers
2014
2015
2016
Mobile
Broadband
C onnections
6
Source：OVUM

China
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7. Global Internet: More Demand for
Chinese Contents
! Growth
of
Internet
by
Languages
(source：Telegeography)
China
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8. Key Trends and Challenges
China Internet Market: Full of Vitality
Mobile Internet: Dramatic Growth
Global Internet: More for China
China
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9. How we meet the challenges
Domestic Network Expansion
! New
Inter-­‐Connect
Core
Nodes
Shenyang,
Xian,
Chengdu,
Wuhan
and
Hohhot
Heihe
Alashankou
Manzhouli
Khorgos
Atushi
Erlianhaote
Urumchi
Hohhot
suifenhe
Shenyang
Tashikuergantajike
Beijing
Xian
Chengdu
Yadong
Wuhan
Shanghai
Ruili
Mengta
Pingxiang
Guangzhou
Hong
Kong
China
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10. Domestic IDC Expansion
With
rich
experiences
in
data
centers
operaDon,
CT
has
more
than
300
IDCs
in
mainland
China
Beijing
Yong
Feng
Beijing
Zhao
Wei
Nanjing
He
Xi
WUXI
InternaConal
SUZHOU
Jinji
Lace
Chengdu
West
Shanghai
InformaCon
Center
Shenzhen
Fu
Yong
Shenzhen
Sha
He
Shenzhen
Long
Gang
Xiamen
Sobware
Park
China
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China
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11. Intelligent Information Hub
SupporCng
Zone
ProducCon
Area:
1million
m2
,
42
IDC
Building,
100,000
Racks
China
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12. Key Trends and Challenges
China Internet Market: Full of Vitality
Mobile Internet: Dramatic Growth
Global Internet: More for China
China
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13. Mobile Value Added Services
Variety of Mobile Apps
Plaeorm
for
innovaDon
Business
expansion
Improve
Lifestyle
“Apps is no longer a necessity. It
has become part of the daily life”
Anonymous
13
China
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14. Wi-Fi Offloading Mobile Data Traffic
! Mobile
network
traffic
is
growing
exponenDally.
Offloading
an
increasing
amount
of
Mobile
data
traffic
onto
Wi-­‐Fi
Metro
Network
is
an
opDon
! Auto
Apps
improving
customer
experience
China
Telecom
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15. Key Trends and Challenges
China Internet Market: Full of Vitality
Mobile Internet: Dramatic Growth
Global Internet: More for China
China
Telecom
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16. Major Backbone Capacity
Own
over
300
backbone
nodes
with
an
operaDng
capacity
of
4000+Gbps
G
1385
20G
699G
1.25G
622M
China
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17. China International Bandwidth:
Keeping the Upward Trend
! By
the
end
of
June
2013,
China
InternaDonal
bandwidth
is
2049 Gbps,
which
grew
110% within
3 years.
Chi na Inter nati onal B andwi dth(G), 2010.6-2013.6
2049
↑110%
1357
975
2010.06
1073
2010.12
1855
1513
1155
2011.06
2011.12
2012.06
2012.12
2013.06
Source：CNNIC

China
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18. International IDC Expansion
Germany
Interxion
US
Santa
Clara
US
Los
Angeles
HK
ShaCn
UK
Telecity
HK
Mega-­‐I
HK
Sino
Favour
Singapore
Global
Switch
China
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19. Conclusion
China Internet Market:
Keep expanding infrastructure for future growth
Mobile Internet:
More Wi-Fi Hotspots and Apps to improve customer
experience
Global Internet:
Enhance Global Connectivity to make Chinese content
easily accessible
China
Telecom
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20. Q&A
Lynn
Dai
EVP
of
China
Telecom
(Singapore)
Pte.
Ltd
Lynndai@chinatelecomglobal.com
Malaysia
Contact:
Patrick
Kim
:
patrickkim@chinatelecomglobal.com
More
informaDon
please
visit:
www.chinatelecomglobal.com
Thank
You！
China
Telecom
Global
Limited