54
China Communications Services Corporation Limited Annual Report 2015
REPORT OF THE DIRECTORS
OPERATION SUPPORT SERVICES FRAMEWORK AGREEMENT
Pursuant to the Operation Support Services Framework Agreement, the Company agreed to provide to China Telecom Group
operation support services, including but not limited to facilities management and renovation, network facilities management in
relation to buildings used for telecommunications purposes, human resources management, equipment maintenance,
advertisement, conferencing services, vehicles, and certain repair and leasing of equipment. China Telecom Group also agreed to
provide operation support services such as logistics services, warehousing, medical care, food and beverages, education, hotel
and travelling services, labor services and so on to the Company.
The Operation Support Services Framework Agreement shall adopt the same pricing policy as the Ancillary Telecommunications
Services Framework Agreement. In addition, in determining the market price of the operation support services provided to the
Company by the China Telecom Group, the Company primarily considered the following factors: (i) prices of the same or similar
type of services provided to the Company by other service providers in the market; (ii) prices of the same or similar type of
services provided to the Company by China Telecom Group and independent third parties previously.
Each of the parties to the Operation Support Services Framework Agreement will accord priority to the other party in the
provision of the operation support services, provided that the terms and conditions offered by independent third parties to the
relevant party are no more favorable than those offered by the other party for the same services, and in return, each of the
parties has undertaken to the other that it shall not provide services to the other on terms which are less favorable than those
offered to independent third parties.
IT APPLICATION SERVICES FRAMEWORK AGREEMENT
Pursuant to the IT Application Services Framework Agreement, the Company agreed to provide China Telecom Group with
telecommunications network support services, software and hardware development and other related IT services. China Telecom
Group also agreed to provide to the Company certain IT application services including voice and data, value added services and
information application services.
The IT Application Services Framework Agreement shall adopt the same pricing policy as the Engineering Framework Agreement.
In addition, in determining the market price of the IT application services provided to the Company by the China Telecom Group,
the Company primarily considers the following factors: (i) prices of the same or similar type of services provided to the Company
by other service providers in the market; (ii) prices of the same or similar type of services provided to the Company by China
Telecom Group and independent third parties previously.
Each of the parties to the IT Application Services Framework Agreement will accord priority to the other party in the provision of
the IT application services, provided that the terms and conditions offered by independent third parties to the relevant party are
no more favorable than those offered by the other party for the same services, and in return, each of the parties has undertaken
to the other that it shall not provide services to the other on terms which are less favorable than those offered to independent
third parties.
