China Telecom

Our Experiences in Internet of Things (IoT)

Roy K.H. NGDirector of Solution & Delivery Department

China Telecom (Europe) Limited

22 June 2018

For automatica 2018

About

CHINA TELECOM

Our Revenue & Subscribers

265.3MMobile

subscribersincluding

200.26M4G

subscribers

4G LTE FDD mobile operator with

World’s largest

120.88 Million Access Lines in Service

Access Lines operator

World’s largest

137.29MWirel ine

Broadband

subscribers

including

130.17MOptical

F iber subscribers

broadband operator with

World’s largest

12.77 Billion

EuroOperating Revenue

2.46

Billion EuroProfit

Revenue & Profit

Total Assets

87.41 Billion Euro 600K Employees

3

*Source: Q1, 2018 Result**Source: 2017 Annual Result

Network Capabilities Forging Core Competitive Edge

Fiber-Optical Networks

230,000 km

Optical Network Port

330 MillionFTTH Coverage >92%

International

Submarine

/Terrestrial Cables

> 43

Mobile Network

Coverage >98%

4G Base Stations

1.17M4G Coverage >98%

Connecting

Countries/Regions

> 72

乌鲁木齐

伊宁

安西

武威

兰州西宁格尔木

银川

包头呼和浩特

榆林

西安

太原石家庄

保定

北京

天津

秦皇岛

沈阳

丹东

大连

济南青岛

连云港徐州

南京上海合肥

杭州

宁波

南平 福州

南昌

深圳汕头南宁

贵阳

重庆成都

昆明

长沙

武汉

张家口阜新

长春 延吉

牡丹江

哈尔滨

齐齐哈尔

拉萨

白城

北京

上海

韩国

日本

香港

广州

新加坡

俄罗斯

瑞典

德国

英国

沙特阿拉伯

西雅图

圣何塞

洛杉矶

纽约

华盛顿

迈阿密

蒙古哈萨克斯坦

吉尔吉斯斯坦

巴基斯坦

印度

尼泊尔不丹

孟加拉

缅甸

泰国

老挝

越南

柬埔寨

马来西亚

菲律宾

朝鲜

台湾

澳大利亚

也门

阿曼

埃及

土耳其

意大利

突尼斯摩洛哥

葡萄牙西班牙

法国

南非

加拿大

多伦多

SMW4

TEA

迪拜

圣保罗

芬兰

美国

达拉斯

芝加哥

阿富汗

马来西亚

日美转接（Faster等4条）

中美直达（NCP、TPE）

港美海缆

欧美海缆

亚太内部海缆（AAG、APCN2、SJC）

亚欧海缆（BBG+EIG、SMW5、置换

AAE1)

中缅欧

中巴伊土欧

中哈俄欧

中哈土欧中蒙俄欧

中俄欧

中巴欧 南美-北美海缆

西非海缆

东非海缆

亚非海缆

欧美海缆

4

International Capacity

> 30TbpsData Centres

> 400

2004 2011 2016

Internet Era Mobile Internet Era Intelligence Era

Leading Integrated Intelligent Information Service

Provider

Integrated Information Service Provider

Three Missions

• Build the Next-Generation Intelligent

Information Infrastructure

• Promote the Information Industrial

Convergence

• Improve the Total-Factor Productivity

Three Goals

• Develop the Strong Network

• Build the World-Class Enterprise

• Create a Better Future Together

Transformation 1.0Transformation 2.0 Transformation 3.0

• Telecom Full Service Provider

• Internet Applications Aggregator

• Leading Enterprise ICT Service Provider

• Leader of Intelligent Pipeline

• Provider of Integrated Platforms

• Participant of Content & Application Development

Network Intelligentization

Service Ecologicalization

Operation Intellectualization

China Telecom Corporate Strategy

5

Service Ecologicalization

4G(5G)

+

BestPay

e-Surfing HD

IoT

Internet+Cloud /Big Data

4G Subs

180 Mil

Mobile Subs

260 Mil

WirelineBroadband Subs

150 Mil

FTTH Subs

130 Mil

Smart Family

100M

Subs

23 M

Users

New ICT Application

Internet of ThingsInternet Finance

1,580RMB Bil

Turnover

As of December 2017

170

China Smart Home Industry Alliance Members

133

Collaborate with Big Data Alliance Members

1.04M

Actively Participating Merchants

44.30

Million

Connected Devices

The Six-Mode has become the International Standard with 216 Terminal Industrial Alliance members

FibreBroadband

6

▲212 % yoy

Internet of Things

Trends & Opportunities

Smart Manufacturing

Smart Car

Smart Meter

Smart Home……

Business Driven

IoT connections will expected

~25 billion devices at Year 2025

Decreased Cost• Cost of transistors at per million has fallen by 2700

times over the past 20 years

• Cost of network at per Gbps has fallen by 52 times

• Cost of storage decreased by 13950 times

Improved Ability

• Internet has evolved to interconnection

of all things

• Smart terminals, sensor chips’

dissemination

• Cloud computing and big data are used

commercially

Cross-border Transformation• Cross Industry M&A

IoT Trends & Business Development

More Mature Ecological

Environment

Global IoT

Growth

8

Opportunities & Positioning

Applications and Solutions

Horizontal --> Vertical

Platform + Terminal

Connectivity InfrastructurePositioning 1: Connectivity data access services:

provides network access capability

Positioning 2: Integrated Services: provides

comprehensive platform with varieties of terminals

integration

Positioning 3: Industry chains integration: provides

Application development which necessary on

integration

IoT operation strategy at global market: from Connectivity to IoT Integrated Services

Horizontal

Value Chain

Proportion TerminalPositioning 2

Connectivity

Positioning 1

PlatformPositioning 2

Application ServicePositioning 3

30%10% 20% 40%

9

IoT

Applications

IoT Applications in Smart City

Smart City

Smart

Meter

Reading

Smart

Parking

Smart Street

Lamp

Environmental

Detection

Smart

Cover

Scene: remote meter reading of water, gas, electricity; fire pressure monitoring and data acquisition

Benefits: depth coverage, human savings, pipe management

Scene: use for roadside parking, get multilateral cooperation to realize

common profit

Benefits: enhance user experience , reduce maintenance manpower and deployment costs

Scene: remote control street lamp(single or multi-lamp)

Benefits: improve the quality of public services and reduces management costs

Scene: smart cover monitoring on sewage wells, urban gas pipeline and municipal pipelines

Benefits: reduce labor costs, improve operation and maintenance efficiency, energy saving and environmental protection

Scene: water, air quality monitoring,

temperature monitoring and so on

Benefits: live monitoring and management, reduce costs and create a green life

11

IoT in Municipal Service

✓ Energy Saving: Time-demand

illumination and brightness

control; Environment based

adjustment;

✓ Infrastructure Sharing: IoT

Node: Light, Wifi, CCTV, Sensor,

Advertise, etc

✓ GIS Visual Management

✓ Remote Control

✓ Real-time Monitoring

✓ Statistic of Municipal Service

12

IoT in Smart Parking

Idle Space

IoT Connection

Management Platform

NB-IOTOpen API

OTT1

OTT2

OTT3

OTT…

P Search Reservation Navigation Payment

Sensor

Mobile APP

Car Park Space

13

IoT in Smart Meter

CMS

3G / LTE / Ethernet

Residential Area

Villa

Network

Host End System MDM

Smart Meters

Factory Area

Data

Concentrator

PLC

Smart

Meters

Data

Collector

14

SMART ENERGY METERS

Make Metering Smarter…

… All in one platform

IoT in Smart Meter

15

Sample Energy Engage UI

Smart Rubbish-bin

Containing mark

Temperature Sensor

Humidity sensorCapacity sensor

Weighting

Wireless

Transceiver

16

Smart Electronic Lock for Logistics Security / Customs Clearing

Sealing Unsealing

Real time

monitoringStarting place of carriage Destination place of carriage

e-lock fixed reader Electronic Lock W/R DeviceContactless IC Card of E-lock E-lock

17

Reference Cases

May 31, 2016, China Telecom, Shenzhen Water Group, Huawei

signed the “Smart water strategic cooperation framework

agreement"

July 13, 2016, China Telecom, Shenzhen Water Group signed the

“Smart Water construction cooperation framework agreement“

Objectives:

• Construct NB-IoT pilot network and Verify end-to-end application

deployment

• Technical verification: wide coverage, low power consumption, low cost

etc.

• Commercial Exploration: Explore the Commercial Evolution of NB-IoT

• Benchmarking: Build the Industry Benchmark of Smart Water

Overall Plan：Two rounds test, finished in 2017.6

May 2016 Oct 2016 June 2017

Strategy

contract

1st round of field test

End-to-end Standard NB network

2nd round of field test

Pilot summary and scale

commercial demonstration

NB-IoT with Shenzhen Water Group

Commercial NB-ioT Network

Meter Construction

chip & module

MetersWater affair

platform

19

OFO Bike-share based on NB-IoT

A innovative travel method —applying mobile Internet technology such as payment and

location service to optimize biking resources on campuses and urban areas where public

transportation is still sketchy

Estimated users: ~ 10Millions

Terminal device

（OFO)

Communication Module

(HUAWEI)

Network and Customer self-management Portal

Provider

China Telecom IoT Branch

China TelecomSolution and platform

provider(OFO，HUAWEI)

OFO

Key competitive advantages:

NB-IoT network advantages, abundant API resources, VPDN services

Project Lead

Customer service

Overall coordination

Software and hardware

API

Customer Service

Network

End User

20

CHINA TELECOM (EUROPE) LIMITED

This document is provided for informational purposes only and is subject to change without notice.

It should not be relied on for any other purposes.

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