Good morning ladies and gentlemen,

It's my great pleasure to speak here for China Telecom, Zhuhai Branch in honor of the general meeting of PHS MoU group. Firstly I want to express my warmest welcome to you all to the lovely city of Zhuhai, so called a romantic city, or the city between the sea and the sky. I hope you enjoy your stay here. I also wish this meeting will be a great success in promoting the PHS technology and its applications.

As you know, China telecom, Zhuhai branch is the leading telecom operator with advanced network infrastructures here in Zhuhai. Our philosophy is "customers first, service foremost". We launched our PHS service in the year 2000, using equipments from UTStarcom.Since then we have been working hard on network expansion and optimization, while at the same time developing new applications such as SMS, CRBT, pre-paid card calling, C-Mode Internet accessing, Smart-tone secretary, etc. As a result, our PHS

network has covered more than 80% of the land field of the city and the number of our PHS subscribers keeps growing fast and reaches about 400 thousand. Recently we implemented Q-BOX technology in our network, which integrates fixed phone, PHS and internet access service together through a home network gateway called Q-BOX. To our delight, we see a promising growth of subscribers who want to use this service. In our way of thinking, the quality of the services we deliver and the development of new value-added-services are two important factors that will drive our PHS services growing in the future. We are fully convinced that there is still big space for PHS to develop even after the 3G licence is issued, provided that we keep working on its optimization, such as standardization of protocols, flexibility of interfaces, network technology evolution, handset improvement, etc.

I was very glad to learn that the PHS subscribers all over the world have exceeded 100 million by last October, which is a tremendous achievements in the industry. Our efforts have been well rewarded. As a telecom network operator, we would like to keep working together with all of you, including equipment providers, service providers, application providers and public organization like PHS MoU to make greater progress in improving the network and its services and thus contribute to the convenience and benefits of our customers.

To conclude my speech, I would like to thank you again to invite me here and I wish the meeting a great success. Chinese Spring festival is just around the corner, may you all the happiness and prosperity. Thank you.