Open Road To Millions of SMMEs

China ICT: Steady Growth, Industrial Structure Optimization 2010~2014 China ICT Developing Situation2009~2014 China ICT Sub-Industry output 1999~2012 China Internet Development R M Internet Penetration Telco Network : Basic infrastructure of Information economy, foundation of foreign investment, economic growth Industry Growth: excess GDP growth, 11.4% increased in 2014($ 2.5 Trillion, Telco revenue x1k/30Y, 9.3% of Top 100) Industry Structure Optimization: Software & IT increased(Mobile Internet/Cloud Computing/Big data/Smart city etc.) Leader in Technology and Standards: 5G, Storage, FTTX, 400G backbone, Cloud Computing, LTE

Alibaba: Leadership in E-Commerce Alibaba 成为全球规模 最大的 IPO Top10 global Internet Company Alibaba Strategy Alibaba World biggest IPO Economic developmentIndustrial DevelopmentSocial Development Every Business is Possible Platform E-commerce Policy AliPay Mobile License Streamline Distribution 11nd,Nov, 2014 $9300M 42.6% from Mobile Terminal Alipay 2.9M Transaction/Min Buyers from 217 Countries 200 International Sellers

Tencent: China's Leading Integrated Internet Service Provider Tencent MilestonesTencent Revenue(Bn USD) CAGR 55.4% Internet VAS 70.3% E-commerce 19.6% Online AD 8.8% by employees 25% master 50% + software engineers Connected strategy Mobile Ecosystem strategic Substantial Investment (Video/ Text/Music Content etc. ) Promote WeChat in specific countries

Success DNA Identification PolicyTelco FirstSubscriberResource Increase Network Investment (1989= 0.3% GDP, 1999 = 2% of GDP, 1999 ~ 2014 CAGR 5.8%) Ultra-Broadband network construction Smart Device Legal Framework ‘Broadband China’ Internet Industry Mgt as the core of Telco regulatory authorities Encourage FMC/MBB construction competition Tax incentive Excellent Students for ICT related major National Telco Research Institute Foreign Capital Introduction Industrial Chain 851 million mobile Internet users 196 million fixed broadband users 700 million active smart Devices Densely populated residential area

China National Informatization Strategy China National Informatization Strategy 10 th Five year plan ( ) 11 th Five year plan ( ) 12 th Five year plan ( ) 13 th Five year plan ( ) Electronic Government Information Resource Information Security Information Industry Economy InformatizationSociety Informatization 9 th Five year plan ( ) Electronic Commerce ICT Network& Infrastructure 2003 GDP Contribution Infrastructure : Software : Service = 7:1: GDP Contribution Infrastructure : Software : Service = 2:3:5

China National Informatisation Catalogue Sector Informatization National Informatization Regional Informatisation Enterprise Informatisation Society Informatisation Set a good example （ Government ） priorities and focus on citizens economic wellbeing Focus on important area （ Cities ） −Follow the national guidelines, localization Focus on efficiency improvement （ Ecommerce ） −Special policy to support SMMEs Information society (individuals ） − Improve quality and standard of living

China National Informatization Experience Summary −Country driven, formulate and promote long term national ICT Development strategy −Formulate Preferential policies and regulations for ICT industry development. −National information infrastructure is basis for ICT industry development −Government as catalytic to improve the National ICT Usage capability −Increase ICT professionals Skills development