China Telecom Group Co., Ltd. August 2019

1. Act as the Main Force for Network Poverty Alleviation, and Resolutely Win the Fight against Poverty • China Telecom Group Co., Ltd. • August 2019

2. China Telecom's Universal Services Development (Video)

3. Leverage the Power of the Whole Group and Resolutely Win the Fight against Poverty It is the solemn commitment of our party to resolutely win the battle against poverty and facilitate the poor and poor areas to enter an all-round well-off society together with the rest of the country. For this, we shall lift all rural residents living below the current poverty line out of poverty by 2020, lift the poverty-stricken counties out of poverty, solve the regional overall poverty, and achieve poverty alleviation. ——Excerpted from the "Report to the 19th CPC National Congress" The party group attaches great importance to poverty alleviation Strengthen organizational team building Focus on network poverty alleviation Coordinate system security • Give full play to the advantages of the communications operator and comprehensively strengthen the construction of basic information networks in poverty-stricken areas • Committed to providing more preferential and convenient communications services for the poor • Expand information application, facilitate people‘s livelihood development, and promote industrial poverty alleviation • Leadership: Chairman acts as the Chair of the Poverty Alleviation Leading Group • Thematic deployment through 7 party group meetings, 3 group promotion meetings, 11 poverty alleviation leading group meetings • 15 visits: members of the party group visited counterpart counties and provided assistance • Full-time institutions: Group departments, poverty alleviation institutions set up by 31 provinces • Accountability: The person in charge of the company at all levels as the first responsible person for poverty alleviation • Poverty alleviation team of 4100 members • System security: Group /province /prefecture /county /poverty alleviation point 5-level penetration • Responsibility fulfilment: The group and the province sign a letter of responsibility for the assistance, and the task is decomposed into each individual and included in the assessment • Counterpart assistance: pairing, counterpart assistance

4. Spare No Efforts to Promote Network Poverty Alleviation 1 “Objective” Give full play to the fundamental and leading role of network poverty alleviation in poverty alleviation program Combined with the actual situation of China Telecom Combined with the actual situation in poor areas • 4G, optical network and other basic communications facilities • More preferential and convenient communications services • Develop information applications such as targeted poverty alleviation big data platform • Local communications network construction and communications service needs • Facilitate local people's livelihood development such as education and medical care • Promote the development of characteristic industries with e-commerce and other information platforms 2 “Combinations” Communications network Communications service Information application 3 “Focuses”

5. Undertake Universal Services Obligations and Provide “Useful” Communications Networks for Poor Areas 01 02 03 2004-2015 2016-2018 2019-2020 • More than 30 billion yuan, "Village Access Project" construction • 62,000 administrative villages and nearly 50,000 natural villages access to network and telephone • Invested more than 10 billion yuanto undertake 40% of the industry's fiber access construction tasks • 52,000 administrative villages access to fiber • It is estimated to invest more than 10 billion yuanfor 4G universal services and network construction in deep poverty areas

6. Case 1: Promote Network Coverage in Deep Poverty Areas Atulie'er Village, Zhaojue County, Sichuan Province, is known as the “village on the cliff.” 500 people in the village live on a mountain about 6 kilometers away from the highway, and it takes 4 hours for a young man to climb up and down the mountain. “In the past, there was no communications base station in the village. ‘The Cliff Village’ only received weak mobile phone signal from down the mountain at a few hilltops”. In 2016, with the opening of China Telecom's 100M fiber-optic broadband, 4G network coverage and IPTV 4K ultra-high-definition TV, “Information Sky Road” has made the Cliff Village closely connected with the outside world. Two “Love Cabins” were built at China Telecom's Cliff Village Elementary School and Preschool Education Point, providing high-quality teaching resources the same as big cities for children in the Cliff Village. At present, more than 50 villagers in the Cliff Village access to Tianyi mobile phones, fiber-optic broadband and IPTV.

7. Case 2: Diversify Communications Means in Poor Areas with New Technologies The Ngari area of Tibet is known as the "ancestor of mountains", with an average elevation of over 4,000 meters, and is one of the regions with the smallest population density in the world; the Nagqu area is located between the Tanggula Mountains in the north of Tibet, the Nyainqentanglha Mountains and the Gangdise Mountains, with an average elevation of over 4,500 meters, and an average annual temperature of -2.1 ° C (with the lowest to be -30 ° C or -40° C), known as the "off limits of the life limits". For universal services construction at high attitude areas such as QiangduiVilliage, ANvVilliage in Ngari, and CaimarongVilliage, KenaVilliage, Morong Village, Nilong Village in Nagqu, the construction period is in August and the construction environment is still very bad. Given some administrative villages in Ngari and Nagqu located at high altitude without optical cable resources and mains supply, and with extremely high construction cost, China Telecom's satellite resources were leveraged to cover those areas. On September 30, 2018, China Telecom Tibet Branch completed the construction of the first three batches of universal services sites, provided package tariffs below the market price, and received enthusiastic response from local farmers and herdsmen, achieving telecom universal services to the villages.

8. Undertake Universal Services Obligations and Provide “Affordable” Communications Services for Poor Households • Reduced handset terminal costs through collection, direct supply, and subsidized logistics costs • Launched 8 poverty alleviation mobile phone terminals, and at least one business hall in each poverty-stricken county provided more than two poverty alleviation mobile phones • Completed the introduction of more than 3,000 practical poverty alleviation contents such as agricultural skills training, and poverty alleviation • In cooperation with relevant ministries, more than400,000 distance education service stations have been established nationwide • Provided poverty alleviation services at 36,000 business outlets, basically achieving full coverage of poverty-stricken counties • Donated 35,000 broadband and IPTV to poor areas, providing the most preferential tariff policy for millions of poor households Targeted poverty alleviation tariff policy IPTV Reduce handset terminal costs

9. Case3: Promote the Network Value Enhancement of Poverty-stricken Areas with Applications Network coverage expansion IPTV 1457 administrative villages access to optical network; administrative village optical network coverage rate: 99.37%; natural village optical network coverage rate: 96%. 107,200 households with free access to Telecom Tianyi HD 4K TV “Six Major Achievements” in the Universial Services Project of Pingliang City Network speed improvement School Access Project 1700 primary and secondary school campus access to "optical network informatization" , and 19,000 classes access to fiber services 85.24 Mb/s, exceeding the universal services standard: 12 Mb/s Network subscriber increase Rural e-commerce Coveried320,400 rural households with a population of 1,385,400 and 116,300 rural households access to services 353 village-level e-commerce service points were built, and the rural network transaction volume reached 95.32 millionyuan Pingliang City is located at the intersection of Shaanxi, Gansu and Ningxia, with jurisdiction over 6 counties and 1 district. The Kongdong District and Jingchuan, Lingtai, Zhuanglang and Jingning Counties are located in Liupanshan area, which is a national-level poverty-stricken county. 594 villages are registered deep poverty villages.

10. Undertake Universal Services Obligations and Provide “User-friendly” Information Applications for the Poor 四川省喜德县瓦尔学校高中班课堂引入网络互动教学后，2017年、2018年毕业生高校录取率分别达100%、90.4%，创历史最好成绩。 Targeted poverty alleviation Rural e-commerce Agricultural application Rural education Agricultural IoT and agriculture-related big data applications promoted agricultural modernization. “Nongjibao” covered 1804 counties in 31 provinces across the country. Farmers have interacted with agricultural technology experts through the platform by more than 280 million times The National Targeted Poverty Alleviation Big Data Platform provided services for 112 cities in 15 provinces, accumulatively serving over 38 million poor people “Tyfo+ YNS platform” rural e-commerce poverty alleviation model was adopted, and the “AgroSciences Service” information services covered 18 provinces, and 584 districts and counties, with 95,000 on-line “YNS" platforms Connected the campus networks in remote areas, integrated high-quality educational resources in developed areas, established online direct interactive classrooms, and facilitated education poverty alleviation

11. Case 4: Share Universal Services Outcomes with Ethnic Minorities Liangshan Prefecture is China's largest Yi community, and the main battlefield for the country to get rid of poverty. The local Yi people have limited mastery of Mandarin, hindering their communication with the outside world and restricting local economic and social development. The State Council Leading Group Office of Poverty Alleviation and Development and the Ministry of Education launched the pilot program of “Learning Mandarin in Pre-school Stage” in minority areas in Liangshan Prefecture, and Liu Yongfu, Director of the State Council Leading Group Office of Poverty Alleviation and Development, conducted on-site investigations. The “Learning Mandarin in Pre-school Stage” Information Platform is a concrete measure for China Telecom to thoroughly implement the important instructions of the General Secretary Xi Jinping on "incorporating the promotion of Mandarin into the fight against poverty in ethnic areas". China Telecom cooperated with the State Council Leading Group Office of Poverty Alleviation and Development to organize network coverage of preschool education points and handling of counselor cards. Up to now, 1961 preschool education points in Liangshan Prefecture have installed broadband, and 6790 counselor cards have been issued, with a handling rate of 99%.

12. Guided by General Secretary Xi Jinping's important discourse on poverty alleviation and development Comprehensively implement the decision-making deployment of network poverty alleviation Take the initiative to leverage the power of the whole group, overcome difficulties, and ensure to earnestly carry out network poverty alleviation work Never let network communications "impede" the poor from stepping towards a well-off life!