China Telecom’s Win-win Strategy for Expo

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  The 2010 World Expo means a variety of opportunities for the companies like China Telecom, which have already put forward a win-win strategy for itself as well as the Expo.
  
  In September 2006, China Telecom inked an agreement with the Bureau of the Shanghai World Expo Coordination and became the global partner, exhibitor as well as the comprehensive information service provider for the Expo.
  As one of the largest telecommunication companies in China, China Telecom is prepared for the Expo. Its task is to provide information services for the Expo. Meanwhile, China Telecom hopes to capitalize on this opportunity to build an international-level company and to expand their brand awareness to the whole world.
  
  China Telecom’s Commitment
  
  Upon signing the agreement, China Telecom has committed itself to providing the best service for the expo.
  On March 31, 2010, China Telecom held a kick-off ceremony in Shanghai, in which Mr. Sun Kangmin, vice general manager of China Telecom, and Mr. Zhang Weihua, general manager of China Telecom Shanghai Branch, stated the mission of China Telecom in the Expo and its staff’s confidence in completing the mission.
  The ceremony, which was held 30 days before the start of the Expo, underlines China Telecom’s central role in the communication support of the Expo.
  In the ceremony, China Telecom put forward the concept of communication service and support featured with “high standard, high quality and high efficiency”, showcasing a “successful, wonderful and unforgettable” Expo spectacle. “This is the biggest test ever for China Telecom,” said an employee of the company.
  Compared with the other two operators, China Telecom Shanghai Branch shoulders the heaviest task of communication support. It takes on the Expo Project of China Telecom and is the frontrunner in ensuring the communication in the Expo. Therefore, when Mr. Zhang Weihua made the declaration and sent relevant short messages to the 20,000 employees of China Telecom Shanghai Branch, “everybody could feel the pressure on our shoulders”.
  
  Convoying the Expo
  
  Telecom guarantee is a tough and complicated task. In addition, the difficulty increases as the ways and businesses of communication become diversified.
   It is known that China Telecom assumed the operation and support for the fixed and mobile communication network, the special network of management system, the emergent communication network, the video monitoring system, the official website of the Expo and some other Expo-related information systems and information services. It also provides 28 large systematic integrated projects of coordinated working platform, commanding disposition, “Mega Eyes” monitoring, exhibitor relationship management, tracking big events, volunteer management system and so on. In addition, China Telecom is also responsible for meeting the communication demand for the Information Center of World Expo as well as the CCTV, TVB and dozens of domestic TV stations.
  After a lot of hard work, a stable and safe information network platform and a hyper large and comprehensive information operation and management network were completely formed. By now, China Telecom has already invested 488 million yuan (USD 71.5 million) in building 94 communication projects in the World Expo Park. In addition, another 3.3 billion yuan (USD 483.4 million) has been invested in the construction of supporting communication network for the Expo in Shanghai.
  The ultimate goal of China Telecom during the Expo is to ensure four things – the safety of information and communication network, the safety of the operation and application system, the healthy information content and the commitment of telecom guarantee. In order to accomplish these goals, China Telecom’s support methods include “the Sea, the Land and the Sky”. The “Sea” means that China Telecom will set out airplanes and patrol ships to patrol keep the undersea fiber-optic cables in China’s offshore areas; the “Land” stands for the Expo communication support commanding team, which is led by Mr. Zhang Weihua and responsible for deploying the communication support for the Expo; the “Sky” means the emergent support from satellites. China Telecom Shanghai Branch will build up four kinds of telecom guarantee systems, which are respectively based on temporary wireless relay, power supply support, satellite video transmission and extreme emergency handlings.
  
  Opportunities for
  Transformation
  
  The task is tough; the pressure is big; the costs are huge. Is that worth it? The answer is yes, because it’s the best way for China Telecom to upgrade from a traditional fundamental network operator a modern comprehensive information service provider.
  The history told us that many famous companies, like Bell, Coca Cola, Toyota and Samsung, all succeeded in capitalizing on important events to become top-level companies. Therefore, how to make use of the World Expo to become one of the world best telecommunication operators is a hot issue too.
  Early in December 2004, Mr. Wang Xiaochu, who then was just promoted to the general manager of China Telecom, said that China Telecom’s goal is to turn from a fundamental network operator to a comprehensive information service provider. “Transformation is the only way for China Telecom to keep competitive and vigorous forever.”
  For China Telecom, the transformation of the enterprises should cover at least four aspects: business and service transformation as the key, network technology transformation as the base, organization and human resource transformation as the support and operation pattern transformation as the must.
  The company’s ultimate goal of transformation is to make the company a provider of all telecommunication services, integrator of Internet applications and leader of ICT service for small- and medium-sized enterprises. The key to achieve these goals is to build a business model which centers the customers and provides the voicing, broadband, video and high added-value services.
  In 2006, China Telecom depicted the blueprint for its transformation – to increase the proportion of non-voicing-service-related revenue in the total income to 35% in three years and then to increase this proportion to 45% in six years. All in all, China Telecom will become a modern comprehensive information service provider in ten years.
  
  Transformation trough
  Innovation
  
  The key to China Telecom’s transformation is innovation, which has endowed China Telecom with a large number of new businesses and profit generators.
  The “Best Tone” hotline is one of the typical innovative businesses launched by China Telecom after starting the transformation. The hotline can provide the convenient information services for the customers in basic necessities of life, travel, purchasing and so on. According to the introduction, the “Best Tone” registered 120,000 messages about personnel safety and help 4,130 people find their relatives in the Wenchuan Earthquake on May 12, 2008.
  “The ‘Best Tone’ is an innovative service which is borrowed by the operators in China as well as our foreign peers,” said Mr. Zhang Chenshuang, vice general manager of China Telecom. The customers can find nearly any information they want through this hotline. By the end of 2008, the “Best Tone” saw an income of 5.76 billion yuan (USD 843.8 million), with a year-on-year increase of 30%.
  In March 2010, China Telecom issued its 2009 financial year report, showing that the income of non-voicing service took 50% of the total income in the year of 2009. Certain achievements have been obtained in these years.
  Now here comes the World Expo! As the main communication support provider, China Telecom could extend their brand awareness to the whole world. Meanwhile, the huge demand for communication support will encourage China Telecom to think of how to provide the high-quality communication service timely and efficiently. New technology has been adopted. Innovation is encouraged. China Telecom is greeted by an unprecedented opportunity for development as well as transformation. China Telecom contributes to the Expo and the Expo benefits China Telecom.in a win-win situation.
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