During "The Tenth Five Year Plan" period, China will continue to witness a tremendous boost of revenues and traffic in the telecom sector, which doubles the growth rate of GDP. It is anticipated that this sector will develop at an annual rate of 123%, and by 2005 revenues from the telecom market will reach 960 billion RMB.

Grasping this historical opportunity for development, China TieTong will bring its advantage in an integrated nationwide network into full play, and on the basis of meeting the needs of railway clients, undertake the following things: expanding the market coverage in major cities and in economically developed regions along the coast, putting emphasis on developing the middle and west regions and vast countryside along the railway routes, and endeavoring to develop railway transportation related enterprise clients and customers in both urban and rural areas. In addition, relying on railway transportation, China Tietong will also make great efforts to build and develop e-business integrating goods, information and cash flow, so as to offer comprehensive telecom services to enterprises and individual customers in urban and rural areas.

In order to be among the first class in terms of technology and service, China TieTong will take the initiative to introduce and adopt the most advanced technologies, rebuild, expand and upgrade its fundamental backbone networks, transmission network, switching network and MANs, establish and perfect centers for data switching, network management, billing, information service and customer service.

China TieTong has as always attached great importance to its talents breeding, and a "Ten, Hundred, Thousand, and Ten Thousand" Program has been put forward, that is, since 2001 to cultivate 10 doctors, 100 masters, 1000 senior managers and 10,000 experts in operation, technology and marketing in addition to its original talents. China TieTong will endeavor to foster batches of employees characterized by reasonable knowledge structure, high technical and management capabilities, who are able to take tasks related to research, design, construction, marketing or service.

Great efforts will also be made in the following aspects: positively adopting the system of modernized enterprise, perfecting management at the corporate level, pushing forward innovation in system and mechanism, fostering a modernized-enterprise-oriented culture, and building a nuclear capability for the enterprise, so that China TieTong will turn into a quite competent modernized telecom carrier. In addition, China TieTong will try to win 3~5 percent of the whole domestic telecom market, and make its due contributions to speed up the informatization of the railway system and the society at large.