Harmonious Development and Win-Win Future —Corporate Social Responsibility Report China Unicom 2011

Harmonious Development and Win-win Future —Corporate Social Responsibility Report China Unicom 2011

March 2012

Contents

Company Overview ...... 4

Management Team ...... 6

Organization Structure ...... 7

Corporate Governance ...... 7

Carry out the Responsibility ...... 10

Fight Corruption and Build Clean Governance ...... 13

Ensure Legal Operations ...... 15

Improve Auditing ...... 17

Innovate Finance Management ...... 18

Strengthen Publicity ...... 18

Carry out Safety Production ...... 21

Strengthen the Duration Management ...... 22

Safeguard Employees’ Rights and Interests ...... 25

Encourage the Growth of Employees ...... 27

Showing Care to Employees’ Lives ...... 31

Adjust Product Structure ...... 33

Buid High-quality Networks ...... 34

Increase Innovation Capacity ...... 36

Maintain Smooth Communication ...... 39

In-Focus:Carry out Overseas Responsibility and Enhance Interntaional Operation Capacity ...... 46

Benefit Public with Information Technology ...... 49

Push Forward the Information Industry ...... 54

Boot Rural Development ...... 58

Purify Network Environment ...... 62

Provide High-Quality Service ...... 64

Promote Energy Conservation and Emission Reduction ...... 76

Implement Joint Construction and Resource Sharing ...... 80

Poverty Alleviation and Aid to Tibet ...... 83

Donate Money for Education ...... 85

Volunteer Service ...... 89

Chairman’s Statements

As the turning point for

China Unicom’s 3G

communication from the start

to the rapid growth, 2011 is

also the key year for the

innovative development.

Upholding the principle of

―innovation changes the world‖, China Unicom thoroughly implements the ―3G leadership and integrated innovation strategy‖, and takes the opportunity of 3G and mobile internet to promote the upgrade of the company. Through the establishment of differentiated competitive advantages, we have enhanced our comprehensive strength with our own characteristics.

As the formal member of the UN Global Compact, China Unicom fully recognizes and follows the ten principles of the Global Compact in human rights, labor, environment, and anti-corruption. With sustainable development as the core, China Unicom has further promoted our work in corporate social responsibility, and made effective efforts in information service, cooperation, operation management, staff care, and society feedback. In 2011, we have speeded up the transformation of the

growth pattern making 3G becoming the first driving force for the company. Currently, our business structure continues to be optimized and revenues from major businesses rank first in the domestic industries, demonstrating a sound development trend and good market and customer recognition. Holding up the principle of ―livelihood most and service first‖ , we continues to innovate new products and applications, promote new mobile internet products, enrich industry information applications, serve urban information, increase service quality, push forward innovations of the industry chain, and benefit the livelihood through information service. We will strengthen the Group control, actively explore the professional, flat, and integrated management, promote the professional and integrated operation in network construction and maintenance, upgrade and double the capacity of the mobile communication network, and increase the share of broadband fiber network; actively explore the green development pattern and control the increase of energy consumption; initially set up the centralized and integrated IT support architecture, establish the transparent financial system throughout the Group, and constantly raise operation efficiency.

We have carried out the responsibility of staff development, protected the legal interest of our employees, advanced open competition for management personnel and internal human resource exchanges, improved the career development mechanism, and optimize the human resource

structure to unleash the new vitality. China Unicom is trying to become an outstanding corporate citizen, care the society, carry out poverty alleviation and provide aid to Tibet and Xinjiang. We will establish a sound social image through the participation of social welfare undertakings and the spread of information civilization.

Looking ahead, the information communication industry will inject more power to social economic development with rising upgrade speed.

China Unicom will apply the scientific outlook on development to firmly hold the opportunities and accelerate innovations. We will improve the integrated operation management system in the new situation by building leading information communication facilities and enhancing the service capacity. China Unicom is determined to build better information life and make new contributions to social economic development with all parties.

Chang Xiaobing

Chairman

China United Network Communications Group Company Limited

March 2012

About us

Company Overview

China United Network Communications Group Company Limited

("China Unicom") was established on January 6th, 2009 based on former

China Unicom and former China Netcom, with branches located in 31 provinces (autonomous regions and municipalities) across China, and a number of countries and regions overseas. It is the only Chinese telecom operator listed on the stock exchanges in New York, Hong Kong and

Shanghai. China Unicom has been among the World’s Top 500

Enterprises for successive years.

China Unicom has the world’s send largest fixed network, mobile network, and internet network, focusing on fixed communication, mobile communication, domestic and international communication facility service, international satellite private line, data communication, network access, telecom value-added businesses, and communication-related system integration. By the end of 2011, China Unicom has had 350 million users with 529.3 billion yuan corporate assets.

With a modern communications network characterized by nationwide coverage and global reach, China Unicom has been actively promoting the broadband-based development of its fixed and mobile network, expanding its international network coverage and improving the layout of its marketing outlets, so as to provide the comprehensive and high-quality information and communications services for the subscribers.

By the end of 2011, China Unicom has completed the construction of

239,000 3G base stations, 375,000 2G base stations and 85.92 million broadband access ports. Our international roaming business has covered

548 operators in 246 countries and regions.

Facing the global telecom innovative transformation and the opportunities and challenges brought by China’s integration of information and industry, China Unicom will give full play to the unique advantages of the restructuring. With the full-business operation and 3G as the engine, we will center on the users and meet users’ information needs with rising communication guarantee and service level. We are committed to become the leader of innovative information life and play important role in the national economy and social informatization.

Management Team

Chang Xiaobing Lu Yimin Chairman General Manager Secretary of Party Committee Deputy Chairman Deputy Secretary of Party Committee

Tong Jilu Director Li Jianguo Deputy General Manager Member of Party Committee Member of Party Committee Team Leader of the Discipline Inspection Commission

Li Fushen Li Gang Director Deputy General Manager Deputy General Manager Member of Party Committee Chief Accountant Member of Party Committee

Zhang Junan Jiang Zhengxin Deputy General Manager Deputy General Manager Member of Party Committee Member of Party Committee

Shao Guanglu Deputy General Manager

Organization Structure

In line with the principle of benefiting development, management, and efficiency, China Unicom will continue to optimize the mechanism and operation efficiency, laying a solid foundation for the sustainable development of the company.

Corporate Governance

◎ Improve the corporate governance mechanism

In 2011, China Unicom will strictly follow the internal regulations and the legislations in mainland China, Hong Kong, and the United States, learn the advanced experience of international companies, and constantly

improve the corporate governance structure and internal management system.

中国联通股权结构

中国联合网络通信集团有限公司

其他2位发起人公众股东

61.05％ 0.01％ 38.94％

中国联合网络通信股份有限公司

100％ 17.90％ 82.10％ Telefónica 中国网通中国联通 Internacional 其他公众股东集团(BVI)有限公司 (BVI)有限公司 S.A.U. 29.74％ 41.27％ 9.57％ 19.42％

中国联合网络通信（香港）股份有限公司

100％ 100％ 100％ 100％ 100％ 100％ 100％中国联通（日中国联合网络中国网通集团中国联通（香中国联通（美中国联通（新中国联通（欧（香港）有限港）运营有限洲）运营有限加坡）运营有洲）运营有限本）运营股份通信有限公司公司公司公司限公司公司有限公司

Based on the comprehensive review of the corporate governance conditions of its departments and subsidiaries at all levels after the merger, the Company built up a governance structure respectively within the group, China United Network Communications Limited (listed on the

Shanghai Stock Exchange) and China Unicom (Hong Kong) Limited

(listed on the Stock Exchange of Hong Kong and the New York Stock

Exchange), in which the Board of Shareholders, Board of Directors and the senior management have clearly defined obligations and may restrict each other. Apart from that, the Company continued to optimize the related rules and regulations concerning the Board of Directors and

information disclosure, and improved the decision-making process and the systems of the Board of Directors. In 2011, China Unicom (Hong

Kong) Limited has set up the Nomination Committee to improve the structure of corporate governance in line with the best corporate governance practices.

 The convening, voting and other related processes concerning the

General Meeting of Shareholders shall strictly comply with the

related laws, regulations and the internal rules so as to ensure that

all shareholders, in particular the minority shareholders, could be

treated equally and be entitled to their rights and interests based

on their shares of the Company.

 The Board of Directors has always been serving the best interests

of the Company and its shareholders. The listed companies

effectively supervised the internal control system in relation to the

financial report mechanism through establishing the Board of

Directors featuring universality as well as two committees under

the Board. Besides, the listed companies also gave full play to the

specialties of all directors to enhance the performance of the

Board.

 Based on the shareholders’ interests, the Board of Supervisors

conducted supervision on major events, finance as well as the

compliance of the directors and senior management of the

Company.

◎ Improving the Communication with Investors

The Company has strictly complied with the laws and regulations on information disclosure of listed companies to ensure the authenticity, accuracy, completeness and timeliness of its public disclosures and the equality among all shareholders in obtaining corporate information.

Meanwhile, the Company honored and safeguarded the legal rights and interests of all stakeholders by setting up the Investors Relations

Department to provide investors with the materials and services as needed and actively maintaining on-going dialogues with the investors and fund managers through replies to inquiries, interviews and meetings between the management and investors and other opportunities to update the investors with the latest progress in business operation and management of the Company.

Carry out the Responsibility

China Unicom is committed to become the ―leader of innovative information life‖ and will fully implement the ―3G leadership and integrated innovation strategy‖. Integrating harmonious development and social responsibility into the company’s vision and strategy, we will promote the harmonious development of the company, society, and environment.

•Innovation & Service Leader Vision for Information Life

Harmonious •3G leadership and development Strategy integrated innovation

•Focus on growth and improve Social Target: efficiency, and take 1/3 of the Responsibility telecom market shares

Since the performance of social responsibility is the important

foundation for a company’s harmonious development, China Unicom

continues to take sustainable development as the core and integrate

―credibility, green, safety, vitality, and responsibility‖ into the overall

operation process under the guidance of ―integrating responsibility into

core businesses, focusing on customer awareness, and performing social

responsibility‖. We will combine the enterprise development with

comprehensive social responsibility to realize the integration of enterprise

interests and social tasks.

We have set up the organization system for social responsibility,

form the steering committee of social responsibility headed by the

company leaders, clarify the competent department for social

responsibility, appoint the contact persons in all the departments of the

headquarter, and set up channel to implement social responsibility

between provincial branches and their subsidiaries.

Having attached great importance to the communication with

stakeholder, we have set up the special and daily communication

mechanism with governments, customers, employees, investors, partners, the industry, communities, and the general public. We have realized the common development through the annual financial report and corporate social responsibility reports and the information release on our websites and newspapers.

In the future, China Unicom will implement the harmonious development strategy and continue to enhance our work on social responsibility. We will strictly carry out our social responsibility, increase the performance, and enhance the soft power of the company to make our contribution to the building of the harmonious society.

Consolidating the Fundamental Management

China Unicom further strengthens the corporate management, continues to promote management reform, improves refined management and working efficiency, focuses on standard management and flexible operation, and establishes the long-term mechanism to guarantee and promote the sustainable development of the company.

Fight Corruption and Build Clean Governance

In 2011, centering on the corruption prevention and punishment

mechanism, China Unicom has

implemented the accountability system

in the Party conducts and clean

government, and convened the special

conference on anti-corruption. While our comprehensively planning, we

have also promoted the work in anti-corruption education, supervision

and inspection, complaints, and organization. We are committed to

realize innovative reforms and leap-forward development of the

company.

 Promote the building of the corruption prevention and punishment

mechanism, revise the implementation methods of the

accountability system in the Party conducts and clean government,

carry out the inspections on the execution of related mechanisms,

push forward the annual inspection of the corruption prevention

and punishment mechanism, and organize exchanges and

discussions on anti-corruption and clean government.

 Formulate Selected Case Violating the Laws and Disciplines and

Warning Education Drafts, and organize anti-corruption education

for all management personnel and employees.

 Strengthen the supervision on the management personnel, carry

out special inspections, and improve the archives management of

the management personnel to promote lean governance.

 Strengthen supervision, continue to solve the problems in project

construction, address the off-book accounts, supervise purchase

effectiveness and regulate major decision makings.

 Smoothing the complaint and report channel, properly dealing

with various complaints and reports and putting up efforts on

investigations of related cases; meanwhile, further consolidating

efforts on early warning and prevention.

 Strengthen the organization of discipline inspection, complete the

four-level discipline inspection system of the Group, organize

trainings for frontline employees, and improve the quality of the

inspection group.

Ensure Legal Operations

◎ Constantly Improve Legal Operations

China Unicom actively run the operation under the rule of laws, and set up and improve the overall legal and risk prevention system centering on the chief legal counselor system and featuring ex ante prevention, in medias res control and en post remedy. The Group, 31 provincial branches and 4 key subsidiaries have all appointed the general counsel. The Group and provincial branches have all set up independent legal and risk management department and employed professional legal staff. Besides, the rules and regulations, contract management and the decision-making process in relation to key problems have been standardized; all legal disputes have been properly settled with decreasing case numbers and amounts. We have organized various activities on legal education: set up an email box for legal consultation, Open the online course—Online Legal Community, set up the special column for law disseminating, organize knowledge contests on laws, issue brochures on basic legal knowledge and case studies, and hold various thematic trainings to disseminate laws and promote the legal awareness among employees.

◎ Improving the Internal Control and Risk Management

System

The Company has established an internal control & risk management organizational system covering the whole Company and composed of the Board of Directors, the Internal Control & Risk

Management Committee, department of internal control and risk management and other related functional departments. Based on the close combination of risk management and internal control, we will integrate all the requirements into the daily management and business procedures of the company.

 Follow the guidelines of the basic regulations of the internal

control issued by the five Ministries, including the Ministry of

Finance. Re-organize the current internal control system and the

management requirements and optimize the internal control

regulations.

 Organize the internal control procedures. Find out possible risks

in all the business links and put forward complete solutions.

 Review risk cases and promote professional risk notices, and push

forward departments to solve management risks to the risk

resistance capacity of the company.

 Distribute the Special Issue on Laws and Risk Management,

strengthen the training on internal control and risk management,

and build sound risk management culture through various cases

and trainings.

Improve Auditing

While strengthening the auditing system and centering on the realization of the operation target and the increase of profits, China

Unicom has carried out the internal control review, special auditing, economic responsibility auditing, and project auditing. We will solve the problems to promote the effective growth of the company.

 Targeting on the potential risks in key business areas, carry out

mid-term and annual internal control review and 3G business

control. Regulate company operations to increase management

profits.

 Solve problems and build the long-term internal control

mechanism through supervision and follow-up auditing.

 Carry out the auditing on project construction and energy

conservation and emission reduction. While saving the

construction fund, we will turn investment costs into production

capacity and realize real economic profits.

 Set up the pre-warning auditing platform, build pre-warning

models on effective development and 3G development, formulate

the warning system for key index, and prevent and control

operation risks.

Innovate Finance Management

Under the guidance of value, China Unicom has strengthened the budget management, optimized resource distribution, and improved the finance management.

 Carry out the all-cost benchmarking evaluation of the local

networks, set up the benchmark for local networks, build the

all-cost management and calculation system, and promote the

transformation from the all-cost evaluation of local networks to

all-cost management.

 Give full play to the effectiveness of assets and resources,

reasonably distribute all resources, and revitalize over 1.7 billion

assets throughout the year.

 Use information methods to set up the professional transparent

financial information system for local networks; build the

management system for wholly-owned, holding, and participated

investment of the Group.

Strengthen Publicity

◎ Build complete Brand Management System

Since the introduction of the new brand image and the all-business

brand ―Wo‖ in 2009, China Unicom has carried out the brand publicity

with reasonable steps. In 2011, led by the publicity of personal internet applications and industry informatization, the company integrated the advantage links in networks, businesses, terminals, service, and marketing, and realized the systematic full-business publicity. While strengthening the Wo.3G, we have also promoted

Wo.Family and Wo.Busienss and introduced

Wo.Pai to enrich the contents of the brand. The

AC Nielsen Brand Asset Evaluation Report shows that the brand awareness has reached 65% with rising image among customers. According to the ―Top 50 Global Telecom Brand in

2012‖ issued by BrandFinance, the brand value of the company has reached 7.9 billion USD, an increase of 25.8%, ranking 13th on the list.

◎ Actively Respond to the Concerns of All Circles in the Society

China Unicom has carried out communications with media through various methods creating a sound public opinion environment. In 2011, we have organized many news releases and interviews to raise the corporate image and advertise our differentiated businesses and network advantages. At the same time, we have effectively executed the liaison mechanism of spokesman to respond to the concerns of all circles in the society.

In 2011, China Unicom has issued over 1500 pieces of news on the internal and external websites, and submitted 320 news releases to the new website of SASAC, 120 of which have been published. Our eomployees, users and the general public could have a better understanding of China Unicom’s reforms, development, marketing strategies, and other information.

In line with the publicity needs of current internet media,

China Unicom has registered its official micro-blog on Sina, Sohu,

Sina and Netease. By 2011, the Group has released over 700 micro-blogs with 0.1 million fans, which plays a special role in establishing the enterprise iamge and serving our customers. The micro-blog has become an important channel for the communication between China Unicom and the society.

Deepen the Building of Safty Enterprise

China Unicom pays high attention to safety production, strictly implements security responsibility, continues to strengthen the system of responsibility for production safety, organizes construction capacity, protects occupational health and safety, maintains stability, and guarantees the company development and reforms.

Carry out Safety Production

China Unicom continues to carry out the ―Year of Safety

Production‖, focus on the safety education and training, enhance the inspection of hazards, promote the implementation and standardization of basic safety production, strengthen the accountability system, and create sound security production environment.

 Carry out the inspection of fire-fighting facilities throughout the

system, and standardize the management of fire-fighting safety.

 According to the Ban on the Safety Production of Central

Enterprises and the Quantitative Evaluation Standards on Safety

Production Management of China Unicom, promote the

standardization of safety production.

 Set up and improve the

information platform of

safety production, optimize

the sharing, exchanges and analysis of platforms, and report the

data of safety production in a timely and accurate manner.

 Strengthen the inspection of hazards and safety production, carry

out two national safety production inspections, and three

self-inspections of hazards in branches.

 Strengthen the campaign against the crimes in the fields of

electricity, telecom communication and radio, and cooperate with

the public security department in the campaign.

In addition, China Unicom is making efforts in labor protection and pushing forward the building of occupational health management. We have carried out the work in anti-poison, anti-radiation, anti-noise, anti- freeze, and sunstroke prevention, and strengthen the management of facilities for special work and the work under harsh conditions.

Strengthen the Duration Management

◎ Promote the Long-Term Stability of Restructured Enterprises

China Unicom is constantly focusing on and supporting the development of restructured enterprises.

 Guide restructured enterprises to complete the basic management

system.

 In line with the national documents on the separation of secondary

businesses and the principle of equal priority, properly deal with

the business relations with the restructured enterprises to

demonstrate the support of the original major enterprise to the

restructured enterprises.

 Guide the reorganization of similar businesses or the restructured

enterprises in the same area; guide restructured enterprises to

promote the transformation of products and businesses based on

their own resource advantages.

With the development of restructured enterprises, the employees have increased to 26700 from the original 8300, bringing obvious social benefits.

◎ Steadily Push Forward the Reform of Collectively Owned

Factories Operated by State-Owned Enterprises

The reform of collectively owned factories operated by state-owned enterprises is the key decision of the central government to deepen the reform of state-owned enterprises and promote social harmony and stability. The company shall make active preparation for the reform.

 Find out the situation of collectively owned factories and

employees.

 Learn the experience of pilot reforms of collectively owned

factories and the separation of secondary businesses, and study the

implementation plan of the reform.

 Strengthen the contact with the competent departments of

collectively owned factories at all levels, follow the reform

policies and its implementation, and coordinate with related

departments to deal with unresolved issues.

Build Harmonious Labor Relations

Based on the principle of putting people first, China Unicom has innovated the human resource management mechanism, enhanced the capacity of employees, and protected the legal rights and interests of the staff. While providing enough space for employees, we will stimulate the vitality of our teams and guarantee human resource for the sound development of the company’s businesses.

Safeguard Employees’ Rights and Interests

China Unicom strengthens the employee management, respect equal working opportunity, and strives to realize diversified employment. By the end of 2011, we have 300,021 employess, of which the percentage of male and female employees stands at 58% and 42% respectively, and minority employees account for 7% of the total.

42%

58%

Minority staff Male staff Female staff

◎ Promote Democratic Staff Management

In 2011, China Unicom continues to improve the efficiency of the workers conference, and encourage representatives to participate the

management of the company. The convening of the fourth session of the first workers conference and the annual meeting of the company enable representatives to have a better understanding of the development strategy, marketing strategy, and operation and management。In September, we have organized the opinion poll among all the employees throughout the system, an activity that enables employees to offer their ideas to the development of the company and facilitates the management to understand the demands of the staff. The activity has formed an atmosphere to respect practices and the staff’s opinions, understand reforms, and participate in the development, a setp condusive to set up a democractic manangemetn system.

In 2011, China Unicom has formulated the Management

Methods to Build Workers’ Family of China Unicom. The trade

unions of the provincial branches have won over 80 outstanding

titles, including the Model Workers’ Family by the Trade Union of

the National Defense and Post Industry, Outstanding Trade Union

Worker, Pioneer, and Friend of the Trade Union.

◎ Realize Effective Encouragement of the Staff

In 2011, based on the market scale and the distribution system of resources, China Unicom has made the labor cost effectively penetrate

into the front-end of the market. The resource distribution continues to favor the frontline employees; optimize the evaluation system of employees; implement the regular adjustment of salary levels through comprehensive credits, quantitative encouragement and dynamic salary levels.

Encourage the Growth of Employees

◎ Promote Employment

In 2011, China Unicom has completed the campus recruitment through strengthened employment requirments and optimized procedures, and recruitment of 2012 has also started. While optimizing the personnel structure, we have provided excellent opportunities for outstanding employees and graduates.

The Jiangxi Branch has taken the lead to start the college

graduates recruitment for rural branches in 2011. After written

examination, interview, and comprehensive tests, we have employed

outstanding graduates to work in rural branches as the general

manager assistants, center directors, and group customer directors.

The activity has received the compliments from the Provincial

Organization Department, urban organization departments, and

college graduates.

◎ Expanding Career Development Space

In 2011, China Unicom continues to promote the post value-based personnel-post matching and promotes the pilot management of post qualification. Based on the platform of ―post+capacity+performance‖, we will encourage the resources to flow towards high-value posts, performance, and capacity. Within 1-2 years, we will build two-way development for the staff and stimulate the vitality of the teams.

◎ Innovate the Employment Mechanism

In 2011, China Unicom continues to stick to the democratic, open, and competitive principles and emphasize the staff’s capacity and performance. In line with transparent and open procedures, we have organized the competition for general managers and deputy general managers in provincial branches. Nearly 9% of all the applicants have been selected into the talent pool after rounds of qualification examinations, written tests and interviews, and 40% of which will become general managers and deputy general managers.

◎ Strengthen Staff Training

In 2011, China Unicom continues to promote key trainings and skill qualification and improve the quality of the employees.

 Strengthen training of the management personnel and key

businesses; carry out IBM leadership transformation and

cooperate with Telefonica

to train executives, reserve

personnel, and the leaders

of provincial, urban, and

county branches. Currently,

the trainings have been organized for 12 sessions involving 948

trainees; we have organized 231 business and skill training classes,

involving 14750 trainees.

 We have increased the

percentage of posts with

certificates, and organized 12

skill certifications in operation,

marketing, customer service,

and maintenance, involving 23000 frontline employees.。

 Explore to build expert teams and the management mode, and

promote internal personnel exchanges to reasonably allocate

high-quality human resources. Currently we have organized 16

exchanges covering 260 posts, and all the branches and

subsidiaries have also carried out leadership and business skill

trainings, benefiting 1.4 million person times.

New employees are the future and lifeblood for the development of the company. Through years of practices, the Inner Mongolia Branch has established an effective training program for new employees, which helps them to integrate into the company.

Showing Care to Employees’ Lives

China Unicom cares about the physical and mental health of the employees. In 2011, the company organized the annual physical examination, and carried out various cultural and sport activities, including

42 provincial competitions and 30 provincial cultural activities. In addition, we have opened the psychological consultation classes to permeate care to the daily management of the company.

We care about the difficulties of our employees and the retired staff.

The formulation of the Guidelines to Set up the Fund to Help Employees with Difficulties will guide branches to implement our work under the principle of ―putting people first‖. We have extended our regards to the frontline staff, model workers, and employees with difficulties; we have provided assistance to the employees in the areas severely affected by natural disasters. In addition, the company also cares about the health of the retired staff and makes efforts to enrich their lives.

In Yunnan, we have organized the employees to participate in the mutual medical assistance activity by the Trade Union of Yunnan

Province, and help hospitalized employees to pay the high medical costs.

In Fujian, we have set up the Mutual Assistance Association of

Major Illnesses and the Mutual Assistance Fund.

In Tianjin, we have set up the Emergency Fund and provided assistance to over 400 employees.

In Jiangxi, we have set up ―Wo.Love‖ Mutual Assistance Fund to provide assistance for major illnesses, disability, major disasters and emergencies.

In Hubei, we have set up the Mutual Assistance Association for major diseases, disasters, and hospitalization, and provided assistance to over 10 employees with serious illnesses.

In Guizhou, we have set up the Mutual Fund to provide assistance to over 20 employees.

Enhance Sustainable Development

China Unicom is endeavored to make innovations, transform the marketing approach and resource allocation, provide communication guarantee, and makes new steps in our development.

Adjust Product Structure

In 2011, according to the changes of the market and customer requirements, China Unicom continues optimize marketing strategies and the 3G package system, and introduces HSPA+ high-speed wireless data cards. We have promoted the transformation of our own channels and social channels, and the number of 3G users has increased by 25.959 million to 40.019 million. We will speed up FTTP and the replacement of copper cable by fiber, (10 thousand families) increase network speed, 6000 5565.1 4722.4 5000 4001.9 3855 and optimize the 4000 2009 3000 2010 procedures of broadband 2000 1406 2011 marketing, service, and 1000 274.2 0 3G users Broadband users implementation. The broadband businesses increase rapidly, and the number of users has increased by 8.427 million to 55.651 million. We will promote the implementation of the group and SME-oriented Wo.Business strategy, strengthen the marketin of Wo.Family packages, and speed up the development of integrated busiensses through Wo.Family promotions. 33

Currently, the number of Wo.Family users has reached 8.38 million.

Buid High-quality Networks

We will speed up the construction of communication networks and increase the service capacity. We are making efforts to build leading 3G networks. Currently, our 3G networks have covered all the county-level cities and above and important towns, 100% of airport highways, and 90% of high speed railways and intercity trains; in 2011, we have built 46 thousand GSM stations, and the number of broadband access ports has increased by 20.09 million to 85.92 million, of which the new FTTH/B ports accounts for 86%. In rural broadband construction, the number of villages with fiber access has increased to 0.3397 million, accounting for

54.54% of the total. At the same time, in the age of mobile internet, next generation internet, IOT, and cloud computing, we will enhance innovations, speed up the development of new network architecture and key technologies, and explore the facilities of next generation information networks.

We have speeded up the FTTH in Tianjin, and introduced the

―Fiber City and Intellegent Tianjin‖. By the end of 2011, the fiber

access capacity has exceeded 1 million homes. It is expected that

Tianjin will complete fiber coverage in the urban areas by 2013.

We will strengthen network optimization and security guarantee to ensure smooth networks and stable businesses. We have carried out the deep coverage, network optimization along Beijing-Shanghai express railway, and internet expansion and optimization. Strengthen the communication network security, improve safety standards, rules and regulations, and carry out the safety inspection of communications

network to ensure network security.

Improve the information support and raise customer awareness. In line with the principle of ―One Group, One Structure‖, we have initially built the collective and integrated information support structure to promote transparent information and unified data. Through standardized requirements management procedures and the two-level response system, we could effectively manage requirements and form support plans. The automatic billing will save time and provide bills in a timely manner. We will strengthen the network businesses management, billing accuracy, and unified customer awareness.

Increase Innovation Capacity

In the process of reform and development, China Unicom has increased innovation, optimized the R&D system, and strengthened the platform for enterprise technology innovation.

◎ New Steps in Standard Formation

In 2011, we have submitted 490 articles on international standards, an increase of 271%. In addition, we have taken the lead to participate into the formation and amendment of 211 communication industry standards, raising our influence in the industry.

◎ Breakthroughs in R&D Projects

We have organized researches in Wophone, LTE, IMS, and other 120 36

projects, and carried out studies and tests on the network formation of the same frequency, smart channel, cloud computing, and other 10 new technologies. Wophone is China’s first smart terminal operation system with independent intellectual property rights, and it is also been showed on the Eleventh Five-Year Exhibition.

On February 28, China Unicom has introduced Wophone and

China’s first terminal operating system with independent intellectual

property rights. The Vice Deputy Minister of the Ministry of Science

and Technology said Wophone and the operating system have broken

the monopoly of foreign software companies over smart terminal

operating systems. The breakthrough has raised the innovation

capacity and the competitiveness of Chinese enterprises and is

helpful for terminal manufacturers to design new products according

to the various market demands.

◎ S & T Output Hits Record High

In 2011, China Unicom has submitted 251 patent applications, which has doubled that of last year. We have won 6 Scientific and Technological

Awards issued by China Institute of Communications, of which 4 are second award and 2 are third award; 6 Scientific and Technological

Awards issued by China Communications Standards Association, of which 2 are second award and 4 are third award.

◎ IOT Applications Step on the New Stage

China Unicom actively promotes the network monitoring system for the safety production of coal mines, air quality monitoring system, smart medical care, and elevator guard in Beijing, Chongqing, Shandong,

Fujian, and the other 4 provinces.

Although cloud computing has form an industry chain, it could

not been put into massive use due the problems in standardization

and management. Therefore, China Unicom has increased the input

in cloud comuting, and takes the lead in application mobility and

management innovation while following the the matured

technologies. We will promote the standardization and

interoperability in cloud computing and innovate its application

pattern; we will explore the applicable technical architecture and

introduction plan of cloud computing, and build data-centered

integrated IT architecture. Based on the cloud computing

technologies, we have made achievements in terminal application

virtualization, desktop cloud deployment, facility virtualization and

pooling, application cloud and mobility, and green data centers.

Maintain Smooth Communication

Facing major events and natural disasters, China Unicom has provided reliable communication guarantee and disaster relief.

◎ Guarantee the Communication of the 8th National

Paralympic Game

As the exclusive cooperation partner and designated communication sponsor, China Unicom Zhejiang Branch has provided all-around guarantee for communication access and terminals, network construction, communications, volunteers, Game promotion, and hotline service.

 Provide 3G communication and network transmission support to

the live broadcast of the Paralympic Game, Security Command

and Control, and news reports; we have provided 4 emergency

communication vehicles, 10 power generating vehicles and 212

repair, maintenance and optimization employees.

 Provide exclusive 3G technical support for the torch relay.

 Provide advanced 3G monitoring system, covering 16 venues,

Xiaoshan Airport, Hangzhou Railway Station, and Chalon

International Hotel.

 Provide the sign language hotline. Volunteers and telephone

operators could communicate with deaf-mutes through mobile

videos.

 Provide careful service to the disabled, and they could get service

through the private channel.

 Input over 1 million yuan to develop the volunteer management

platform and encourage more yong people to contribute to the

undertaking.

◎ Complete the Communication Guarantee for the World 40

University Games

China Unicom has completed the communication guarantee for the

26th World University Games with all-around and seamless service, and

provided high-quality service and preferential to visitors and local

residents.

 Set up the command center for the Games, and provide guarantee

teams with 580 people and 150 vehicles. Over 3500 people have

participated in the guarantee for venues, bureau offices and

communication lines.

 Build 67 base stations and 90 special rooms, provide WLAN to all

the major venues and upgrade HSPA+ for 1291 stations.

 Fully increase the service level: produce English IVR for the

Games and arrange English telephone operators; provide

convenient and preferential service for international roaming users;

provide one card for more numbers and prepaid roaming service;

realize automatic roaming in Hong Kong, Macao and Taiwan for

prepaid products.

◎ Guarantee the Communication of the World Horticultural

Exposition

From April 28th to October 22 in 2011, the World Horticultural

Exposition was held in Xi’an. China Unicom has set up a professional

team to provide guarantee in planning, construction, maintenance, network optimization, and emergency communication. We have realized seamless coverage of the communication network and 50M wireless data transmission capacity in the park. Our 248 maintenance employees and the 7×24 guarantee mechanism have ensured the information and communication security of the Exposition.

◎ Provide Timely Assistance to the 7.23 Train Crash Accident

After the 7.23 train crash accident in Wenzhou, China Unicom immediately activated the emergency response plans, and set out communication and repair vehicles. We have cooperated with local police, fire control, and armed police in the rescue operation, and provided the live broadcast for the meeting with domestic and foreign media. In addition, we have set up the emergency communication desks to provide free phone calls, information checking, and people searching.

◎ Fight Natural Disasters

Provide communication guarantee in snow and ice storms. In the early 2011 when Jiangxi, Guizhou, and other areas were bit by the snow and ice storms, China Unicom has dispatched over 150 oil engines from

Henan, Sichuan, and Hubei to provide electricity for the disaster areas.

Complete the disaster relief in the earthquake in Yingjiang of

Yunnan Province. On March 10, 2011, an earthquake of 5.8 magnitude hit

Yingjiang County. China Unicom immediately dispatched over 100 million yuan materials, including 7 repair teams with nearly 120 people,

20 communication command and repair vehicles, 75 oil engines, 1 maritime satellite telephone, 8 fiber welding machine, fibers, and cables.

We have set up mobile service stations in Yinghu Park and Square to provide watter, rest rooms, free phone calls and free phone charging outlet.

Provide the communication guarantee for the forest fire rescue in

Funing of Qinhuangdao. On April 12, in the rescue operation of the forest fire, China Unicom has organized 340 people to guarantee the communication in the operation. We have provided 72 maritime satellite telephones, 10 onboard VSAT 10, 2 mobile base station vehicles, 10 onboard short wave radios, 7 large onboard facilities, 13 kilometer 6-core fiber cable, 2 repeaters, and 33 phones in the command center the front line.

Participate in the communication guarantee in flood prevention. We have set up the leadership group, 7×24 duty call, and rescue teams. In the flood season, we have activated the emergency plans on group and

provincial levels for 54 times, and set out 0.6 million people times and

0.13 vehicle times to guarantee communications. We have mobilized around 18000 facilities, 14000 vehicle times and 114 million yuan in the rescue operation.

◎ Provide Communication Guarantee for Important Activities

In 2011, China Unicom has provided communication guarantee for

the NPC and CPPCC, Chang'e II, the launch of Shenzhou VIII, the first

Asia-Europe Expo, and Summer Davos Forum.

The branches of China Unicom in Inner Mongolia, Shaanxi,

Shanxi, and Shandong cooperated with each other to guarantee the

communications. We have strengthened the inspection over fiber

cables and network equipment, prepared spare parts, and supervised

network communication to ensure the smooth international,

provincial and local transmission links. We have provided

outstanding communication guarantee for the docking and recovery

of Shenzhou VIII and Tiangong I, including images and data

transmissions.

In-Focus: Carry out Overseas Responsibility and Enhance

Interntaional Operation Capacity

China Unicom has sound cooperation relations with major international telecom operators and service providers in mobile and fixed businesses. By the end of 2011, our international roaming business has

covered 548 operators in 246 countries and regions and fixed businesses have reached over 240 countries and regions. The total bandwidth of international cables has exceeded 2000 Gbps connecting the major countries and regions along the Pacific Ocean, the Atlantic Ocean, and the Indian Ocean. The international land cable connects with around 20 cooperation partners in eight neighboring countries and regions with total bandwidth reaching 2500 Gbps. We have set up 82 POP points overseas distributing at 69 cities in 53 nations.

In 2011, China Unicom has held the 60th conference of IREG of

GSMA in Shanghai, the first Capacity China in Beijing, and the

2011 International Partner Meeting in Hong Kong.

China Unicom highly values the coordinated development between the domestic and overseas markets. Currently, we have set up 5 operation companies in HK, America, Europe, Japan and Singapore as well as agent offices in Vietnam, New York, and Korea. All the overseas operation companies have obtained the local telecom business licenses and business licenses. Our overseas companies have increased the service capacity and global network formation capacity of China Unicom.

China Unicom strictly follows the laws of foreign countries and

regions and protects the legal rights of local employees. All the overseas companies are trying to integrate into local communities and actively take on the social responsibility, raising the cohesion and reputation of the company. For instance, the

HK branch actively participated in the ―Caring Company‖ activity to provide volunteer services to disadvantaged groups. The HK branch has won the honor award of the “Caring Company‖ for consecutive years.

Improve the Quality of Information Life

China Unicom is committed to provide high-quality information service to the society and innovate products and services to satisfy customer need and raise customer awareness, bringing better information life to all the users.

Benefit Public with Information Technology

◎ Speed up the Penetration of Data and Information Businesses

Carry out ―Wo.Love.Life‖ data business marketing, cultivate users’ habits, and increase the penetration of mobile internet surfing and key businesses. Oragnize ―Splendid Wo Experience‖ marketing to bring 3G experience to customers.

In line with customer needs, introduce Plan A, Plan B, Plan C,

and special contracts to bring 3G experience to users. Continue to

implement unified tarrifs and packages.

The Wireless network will be upgragded automatically, and the

packages will be automatically upgraded to the next level if the data

traffic exceeds the original package limit.

Substantially reduce the outbound costs; introduce daily raoming

service overseas and in Hong Kong, Macao and Taiwan; and

introduce one card for two numbers.

◎ Promote the “Wo.Family” Integrated Products

Provide convenient and favorable family communication solutions.

While using high-speed broandband, users could enjoy phone call discount, free family calls, zero monthly rent for fixed phones and integrated billing.

China Unicom Zhengzhou Branch actively pushes forward anti-theft technologies, and develops the ―home guard‖ family anti-theft system. Based on the high penetration of fixed phones and wide network coverage, China Unicom uses the modern anti-theft alarm telephone equipment to provide illegal intrusion alarm, fire alarm, and remote alarm to family customers. We have integrated users, community security, and the management department to build a security service network that covers the city, community, and families. Currently, we have provided the service to around 5 thousand users, winning the appreciation of the Municipal Committee of Political Science and Law and the general public. The project has beed listed as the model project of safety in Henan Province.

◎ Develop and Promote New Internet Services

While providing high-quality mobile music, mobile video,

Wo.reading, Wo.shop, and mobile micro-blog, China Unicom has also carried out the development and pilot programs of new products. For instance, we have developed W+ plugin community, color ring back tone micro-blog, 116114 appointments for medical care, smart channel-based

NET billing and content operation. Our products could meet customers’ personalized and various needs.

In order to reduce the waiting time of patients, we have provided 114/116114 registration service and 7×24 appointment registration service.

Currently, we have provided online appointment registration in 13 provinces (cities), covering around 1000 hospitals with about 0.2 million daily appointments. By December 2011, we have provided the service to 1.5 million person times with 1.45 million registered users and 7 million phone calls. All the level-three hospitals in Beijing have been connected to the unified appointment registration platform of China Unicom. The 116114 hotline in Fujian has covered all the 269 hospitals of the province. The service has been listed as one of the ―livelihood project of 2012‖ by Fujian Provincial Government. The project of ―electronic health record-based illness management‖ has been listed as the achievement of the scientific support project of the ―12th Five-Year Plan‖. China Unicom Jiangsu Branch has developed the 116114 health care service platform, the telephone operators are made up by processional health and medical personnel, and there are over 20 experts providing online consultations each day.

Push Forward the Information Industry

China Unicom is playing a leading role in the informatization construction. Centering on the building of ―digital city‖ and ―smart city‖, and the informatization of government affairs, industry, and enterprises, we will build the core capacity in smart channels, bearer service, flexible computing capacity, and service implementation based on our network advantages. We will carry out comprehensive cooperation, introduce the cable/wireless video conference system, three-screen-in-one mobile office solution, network video monitoring system, call centers, and public information platforms. We have provided comprehensive information service to over 0.1 million large custoemrs and 4 million SME customers, including Ministries, local government organs, and central enterprises.

 Apply 3G into the mobile office system of Industrial and

Commercial Bank of China, the after-sale service system of Haier,

and mobile office system of P & G.

 The smart bus system provides information on the arrival and

onboard passenger. The system also transmits monitoring videos

and locations to the control center. Currently, we have provided

the service in Beijing, Shandong, Shanghai, Guangzhou, and

Hebei.

China Unicom has developed the ―3G smart system‖, which could provide bus inspection, real-time monitoring, GPS location, and voice SMS. Currently, over 200 school buses have been equipped with the system.

 We have developed auto information products based on the

cooperation with large auto manufacturing enterprises and

logistics companies. The integration of wireless communication

technologies and database mining has realized the value-added

services, such as remote vehicle diagnosis, vehicle rescue,

location, navigation, news, catering, music, e-books, and games.

 Develop law enforcement products with police, drug

administration, industry and commerce, and tax administration.

The professional terminals could improve the capacity of the

government.

Work with State Administration of Taxation to strengthen and regulate the invoice management. Promote the network invoice system to reduce the costs and waiting time of tax payers, and manage the e-stub. It green and low-carbon features could effectively reduce the cost of invoice management for the tax department and support the campaign against the production and sales of fake invoices.

 Deploy the application of environmental protection to realize the

remote video monitoring of the pollution source and real-time

data collection and reports. Currently, we have provided the video

monitoring of the pollution source in Inner Mongolia and Jilin;

provide shipping and river environment monitoring in Yangtze

and Huaihe River.

 The mobile police application has connected the police terminals,

smart phones, and laptops with the public security database. It

could provide accurate information and effective law enforcement

methods to the police. The application has equipped 45000

policemen in Beijing, Liaoning, Chongqing, and other 12

provinces and cities.

In the education sector, we have actively developed the modern remote education in rural middle and primary schools, enabling the students to share high-quality education resources. China Unicom

Zhengzhou Branch has built the ―class communication‖ system to provide the unified platform, unified database, one-point input, and comprehensive inquiries. After the system is put into operation, teachers could e-board, short-focus projector, network multi-media teaching machines to realize multi-media and interactive teaching. By

December 12, 2011, the system has been applied in 11365 classes in

1200 schools. The system has provided information services in teaching, lesson preparation, teaching management, teacher training, and student quality development for primary and middle schools, especially those in rural areas. Having improving the teaching quality and gap between urban and rural areas, the system has been applied as the pilot project in Zhengzhou and was listed as the one of the ten livelihood undertakings by the local government.

Boot Rural Development

◎ Push Forward the “Village Communication” Project

In 2011, China Unicom continues to push forward the ―Village

Communication‖ Project with annual investment of 1.12 billion. We have completed the project in Hebei, Inner Mongolia, Shanxi, and other 9 provinces and regions, of which 1619 natural villages have telephone connections and 4244 administrative villages have broadband access,

establishing a good enterprise image. After years of construction, our information system has covered nealy half of the villages and towns, benefiting billions of farmers.

◎ Serve the Informatization of Rural Areas

Based on the information network, China Unicom has improved the

―Three Rural Issues‖-oriented information service system, promoted the village communication activity, enriched the methods and contents of rural information services, and constantly raise the penetration and service levels of 12316 hotline, safety mutual assistance, and the remote

education for rural party members. By the end of 2011, the rural broadband users have reached 10.108 million, telephone users have reached 28.589 million, 12316 users have reached 0.544 million, safety mutual assistance offices have reached 0.206 million, and the sites for remote education for rural party members have reached 0.223 million.

Meanwhile, we will continue to develop the value-added services involving rural workers, sales of Receive Consultation and agriculture-related inquiry through agricultural products, and the information and the call center laws through SMS consultation on agricultural techniques. Major business We have also introduced various modes Check agriculture- Check agriculture- related related information information services, including information through contact through websites books information inquiry, expert consultation, and job information for farmers.

China Unicom Heilongjiang Branch has built two 1000M internet optical fiber circuits for the remote online education center.

Our remote education network has covered the party members in 13 cities, 134 towns, 911 counties, and 9889 villages. The provincial government highly appreciated the network guarantee for the activity to improve the quality of rural party members.

In Jilin, we have built the private access platform to realize the private line for 41 designated medical institutions; build the VPDN platform to realize wireless access to the information system for 100 medical institutions; The VPDN network for the provincial

Department of Health has covered 9 cities, 67 counties, and 1470 management institutions with the population coverage of 12.3 million.

In the early 2011, China Unicom Hainan Branch has introduced the customized ―agriculture communication‖ mobile phone, which has expanded the agriculture network to mobile phones with 2G and 3G networks. The mobile phones could help users to search and check the knowledge and industry information on agriculture management, plantation, and animal husbandry. It is the combination of information inquiry, knowledge checking, blog interaction, SMS, and voice notices, providing an important tool for farmer to get agriculture knowledge and information. Currently, the service has been provided to around 1000 farmers in the province.

As the pilot project, the first national ―integrated information platform of rural traffic safety management‖ has been set up in 2011 under the cooperation between China Unicom Guangan Branch and Guangan Public Security Bureau. The platform could send the traffic information from county-level traffic control offices and the traffic police squadrons to the command center of the municipal traffic police squadron and meanwhile the center would send back scheduling information. After the platform was put into operation, the rural traffic accidents of Guangan have dropped by 10%.

Purify Network Environment

China Unicom has taken effective measures to improve website record, resources sublease, on-line mobile phone charge collection, and spam SMS management, which has built a civilized and secure network environment.

◎ Implement Normal Working Mechanism

Formulate and distribute the Management Methods of Information

Security Management of China Unicom. The document has clarified the information security-related procedures and responsibilities in nine key links, including organization, responsibility, and planning, and set up emergency response, assessment, accountability, and other six mechanisms. We will ensure all the information security incidents could be handled in line with the requirements of related national departments in a timely manner.

◎ Strengthen Record and Resource Access Management

Strictly following the principle of ―record first and access second‖, we demand all the access websites shall have operation licenses and website records, and sign the information security management agreement. We have taken measures to regularly check the sublease of servers and strictly supervise customer access and the daily management afterwards. We have cleaned up illegal resource sublease of 59 ISP.

◎ Regulate Mobile Phone Charge Collection

Improve the cooperation and management methods, strengthen the management on the promotion channels of partner businesses, and build the sound and honest cooperation value chain. All the cooperation partners have signed the Information Security Responsibility Letter. We have set up the daily dialing test mechanism with 7×24 supervision on key businesses, 3% coverage for daily dialing tests and 100% coverage for monthly dialing tests. By the end of 2011, we have completed the dialing tests for 530 WAP businesses, 4100 wirelss businesses of China

Unicom, and 239 IVR businesses. Currently 58428 businesses have been tested.

◎ Comprehensively Manage Spam SMS

Through the strengthening of the password management of the SMS

platform, operation procedure management and on-site maintenance

management, we will continue to strengthen group SMS management. In

line with the principle of ―preventive interception, joint working

mechanism and verification afterwards‖, China Unicom has fully

utilized the joint mechanism among networks and provinces, and

improved the response time in spam SMS handling. In 2011, the timely

handling rate has reached 98%. We have set up the spam SMS

management platform in all the provinces and intercepted spam SMS

through content screening and frequency analysis at the SMS center,

SMS gateway, internet gateway, and other links.

◎ Build the Information Security Guarantee System

Continue to strengthen the technical support, push forward the building of information security system, and construct the the technical supporting system of information security featuring advanced prevention, middle blocking, and source tracing afterwards. We have also introduced record management system, negative WAP information supervision, and content dialing tests.

Provide High-Quality Service

Upholding the idea of ―focusing on customers and promoting development with service‖, China Unicom is constantly improving its service mechanism and capacity, builds high-quality service, and is committed to ―satisfy customers and serve livelihood with information‖.

◎ Push Forward Open and Committed Services

In 2011, China Unicom continues to improve the service commitment in broadband and mobile Broadband services Mobile services internet. We are promoting the Rapid installation Improve network quality commitment of ―installation within 72 Rapid equipment relocation Improve service hours, machine relocation within 72 hours, Rapid repair quality and repair within 24 hours in urban areas

and within 36 hours in rural areas‖ in 10 northern provinces. In addition, we have introduced timed repair in urban areas in 21 southen provicnes.

By the end of 2011, customer satisfaction is rising due to the implementation of the two service commitments.

◎ Promote Convenient Electronic Self- Service

We have strengthened the promotion of on-line business halls, mobile business halls, and self-service terminals, and realized the full-business, full-channel, and full-customer coverage of electronic self-service. We will continue to optimize the page layout of on-line business halls: enrich functions; add web searching, on-line shopping, and mobile businesses; simplify use procedures; add rapid payment methods to lower the threshold of payment. The mobile business halls have introduced various clients covering all the mainstream mobile operating systems. The one-button service provides convenient inquiries and businesses for customers. The SMS business Mini terminals of e business halls hall provides over 4000 customized businesses and has realized 33.74 million deals. We have installed over 10 thousand self-service terminals and set up around 60 thousand mini-business halls, users could receive rapid services without waiting in line. QQ and MSN business halls have also been introduced. In addition, we have cooperated with banks to

develop banking service on mobile phones. We have cooperated with The

Agricultural Bank of China and Postal Savings Bank of China to introduce mobile remittance, and worked with China Everbright Bank and Shanghai Pudong Development Bank to set up the platform to collect charges for public services, offering 161 life assistant services for China

Unicom’s users. In 2011, the number of e-channel users have reached 110 million, an increase of 87%; the trade volume has reached 23.1 billion yuan, an increased of 86%; the amount of page views have reached 100 million times, an increase of 293%.

◎ Improve the Service Quality of Business Halls

China Unicom’s business halls have covered most regions of China with 61% of them distributing at the county level, meeting customers’ needs in rural and urban areas. In 2011, we have introduced experiential marketing into business halls. In addition to the optimization of layout, personnel adjustment, improvement of working procedures, standard terminal sales, experience activities, incentive assessment, and strengthening of sales support and trainings, we have added the staff in the halls to better serve customers. We have also integrated sales, terminal demonstration, and service in the sales area

to demonstrate our businesses to customers.

◎ Improve the Service Capacity of the Hotline

China Unicom has set up and operated the first national unified business information collection and distribution system, which has improved the efficiency of information release and the capacity to solve problems in the frontline customer service. The solution rate in the first call of the hotline has risen by 5.6% compared with that of last year.

Since the second half of 2011, we have provided six unified service products for customers, including prioritized access and exclusive service for mobile VIP customers nationwide; response if the 10010 hotline is not available; manual inquiries and SMS/MMS response; SMS notices; coordinated service of 10018 and 10010; on-line handling of broadband problems and progress checking.

On October 28, 2011, China Unicom has opened its V-approved

enterprise micro-blog account ―China Unicom’s Customer Service‖.

Through the internal monitoring of service quality and the external

information release, on-line activities, and reception of service

requirements, we have built a multi-media and active service

platform. The platform has realized the interaction between

customers and the enterprise, guide customer consumption, meet

various customers’ needs and improve service efficiency.

◎ Strengthen Customer Maintenance and Feedbacks

China Unicom actively organized bonus feedback activities and club activities to enhance the interaction with customer and raise customer satisfaction; the trial run of national 10018 VIP customer hotline has made breakthroughs in VIP customer maintenance with the unified number and enterprise image. We have organized the second Table

Tennis Competition of China Unicom and over 50000 people have participated, an increase of 27%. The growing influence of the competition has raised people’s attention on health, improved the image of the company and made effective results in customer maintenance.

China Unicom also provided customized services to the elderly, the blind, and promaty and middle school students.

China Unicom has introduced the “one-button” service for the

elderly at home. The six shortcut buttons of the special telephones

could provide family call, community medical consultation,

entertainment, and the 120 emergency calls. The service is widely

praised by the society due to its considerate assistance to the elderly.

Commitment to Promote Win-Win Cooperation

China Unicom sticks to the open and win-win principle, strengthens the cooperation with governments, operators, content and application providers, social channels, equipment manufacturers, and terminal suppliers, and realizes common development with complementary advantages and shared interests.

◎ Deepen Strategic Cooperation

China Unicom continues to consolidate and expand the strategic cooperation with the governments in provinces, autonomous regions and municipalities directly under the central government. In 2011, we have signed the strategic cooperation agreement of the“12th Five-Year

Plan‖ with the governments of Beijing,

Henan, Shanxi, Jiangsu, and Sichuan. Centering on the promotion of local information infrastructure and the building of the service system, we will push forward the application of information in all social sectors and boost the development of related industries.

We have signed strategic cooperation agreements with over 30 group customers in finance and other industries. We will strengthen the integrated vertical management, deepen cooperation contents and scale, raise core market competiveness of enterprises, and realize win-win results.

Deepen the cooperation with Telefonica. Telefonica and China

Unicom have made substantial cooperation achievements in many fields, winning the close attention and high appreciation from leaders of the two nations. In 2011, besides the collaboration in the expansion of multinational enterprise customers, international roaming, and international networks, the two sides have strengthened the exchanges in executive trainings, international organizations, and the sharing of network and technologies. In addition, the two sides have signed another share swap agreement in January 2011 to raise the crossholding and deepen our strategic cooperation in the capital level.

◎ Enrich the Cooperation with Content and Application

Suppliers

Based on the principle of ―openness, innovation, cooperation, and

win-win results‖ and the regulation and laws, and in line with the method of ―improving quality and selecting contents‖, China Unicom has carried out equal cooperation in product development with qualified partners. At the same time, China Unicom has enhanced the management of partners and innovated the cooperation modes. SP/CP is mainly applied in 2G, fixed phoens, PHS, and broadband networks, and CP/AP is applied in 3G networks and other key growing products.

On December 8, 2011, China Unicom has held the ―Mobile

Internet Industry Summit‖, and proposed the open WO+ system and

built WO+ industry cooperation alliance. Based on the principle of

―openness and cooperation‖, WO+ system will build an open

platform with four core contents, including capacity sharing, smart

marketing, product convergence, and smart channel.

Capacity Smart sharing marketin g

Smart Product channels integration

◎ Deepen the Cooperation with Social Channels

China Unicom has always focused on the all-channel expansion, and has formed the coordinated development pattern of self-owned channels and social channels. We have also established the strategic cooperation partnership with national chain enterprises of home appliances, communication products, and computers, regional mobile phone shops, and B2C electronic malls. We have strengthened the expansion of mainstream social channels. In addition to the cooperation with Suning,

Wuxing, Huaji, and 360buy in 2010, we have set up the partnership with

Gome, Leyu, and PC Mall, and worked with 80 chain channel distributors

in 31 provinces in

2011, covering

around 10000 key

stores. At the same

time, we have

strengthened the service and support of social channels, optimized the mode, percentage, and time limited of 3G commission sharing, realized the balance settlement of social channels, and mobilized the enthusiasm of social channels to develop 3G businesses; we have set up the national channel support center to enhance the support to operation of mainstream strategic channels.

◎ Strengthen the Cooperation with Equipment Manufacturers

and Terminal Suppliers

China Unicom has worked with equipment manufacturers to build the efficient supply chain of mutual trust and support and set up the long-term cooperation relation. In 2011, we continued to implement the open registration system and around 20000 suppliers have been registered.

We will continue to carry out open bidding system to ensure the equity and transparency of purchasing and provide equal opportunity for suppliers in the competition. We will optimize suppliers through the operation performance, taxes, enterprise management, production capacity, occupational health, and social donation. While promoting the sound development of suppliers, we also encourage them to make more contributions to employees, the society, and the nation. The suppliers also expected to strengthen the cooperation with China Unicom, focus on the sustainable development of the society and environment, making efforts to eliminate the digital divide. We are committed to provide better jobs, life, education, and opportunities through communications.

China Unicom continues to deepen the cooperation with terminal suppliers, and introduce more powerful and affordable smart terminals for customers. In 2011, we have introduced 86 customized terminals, including 52 strategic ones and 34 regular ones, which have initially, cover all the consumption groups.

On May 31, China Unicom has introduced the new smart phone with a 3.5 inch capacitive screen and 600 MHz main frequency, which is less than 1000 yuan. The new smart phone has taken the mode of ―direct supply‖ + ―direct control‖. Our scale purchasing could substantially reduce costs and offer the best interests to retailers and customers.

On December 26, China Unicom has introduced the first eight types of new smart phones with 4.0 inch capacitive screens and

1GHz CPU frequency. The new smart phones are the upgrade of the original 3.5 series, which could bring better mobile internet experience to users.

Green and Low-Carbon Development

With the target to become a “resource-saving and environment friendly enterprise”, China Unicom is making efforts to transform the development mode, set up the low-carbon growth concept, push forward efficient, cost-saving, and green development, and build the green environment for “information life”.

Promote Energy Conservation and Emission Reduction

China Unicom has closely combined energy conservation and emission reduction with the sustainable development. We will build the system of energy conservation and emission reduction and improve its management system. In 2011, the total energy consumption has reached

1.85 million tons of standard coals, an increase of 6.3% which is 50% lower in increase rate. In other words, we have saved 200 million yuan in energy consumption.

◎ Enhance the Promotion of Energy-Saving Technologies

In terms of the energy conservation in major network equipment, we have built integrated base stations and distributed stations, implement IP restructuring of networks, and build low-cost networks with current resources. In terms of the energy

conservation in air-conditioners and power equipment, we have introduced the technologies in smart ventilation, auto sleep mode of power, wind/solar energy, and upgrade of energy-saving lamps, a move to explore the energy-saving potential of existing assets. In terms of the building of green communication bureau, we have formulated the

Construction Standards of Green Communication Bureaus of China

Unicom, which would regulate the building of communication bureaus, reduce the energy consumption and emissions, and realize the coexistence of buildings and the nature. In addition, energy consumption and CECP have become the key index for the equipment purchase of China Unicom.

While meeting the requirements of technologies and services, we prefer to purchase energy-saving products.

China Unicom Chongqing Branch has strengthened the building of outside integrated base stations and selected the communication equipment applicable in wide temperature scale. In 2011, the Branch has built 200 outside base stations, saving 6 million yuan in construction costs and 1.8 million KWH or 1.6 million yuan each year. Together with the outside base stations in the previous stages, we could save 5.50 million KWH or 5 million yuan each year.

China Unicom Qinghai Branch has built solar-powered base stations and adopted voltage–controlled solar controller suitable for the plateau environment. Judging by the 18 solar-powered base stations, there were no costs in guarantee vehicles and fuels, which has significant reduced the maintenance costs.

◎ Streamline Networks

We will actively carry out technological transformation, network downsizing, system integration, network adjustment and optimization, and the transformation of the old and high energy-consuming equipment of the existing network, improve network efficiency, and reduce energy consumption. We shall examine and cut off the power of the unused equipment, and try to use the valuable equipment, such as servers, routers, and switches to reduce costs. In 2011, we have cut off the power of over

1200 devices, saving around 6 million yuan in electricity.

◎ Promote Energy Conservation and Emission Reduction in the

Society

We will serve the society and develop industry applications, promote green businesses, such as automatic office, mobile office, integrated information network, video conference, and e-marketing. While boosting the informatization of enterprises and customers, we will reduce the resource consumption of the company and the society.

◎ Organize the Promotion Week of Energy Conservation

We have carried out the activity of ―My Idea for Energy

Conservation and Emission Reduction‖, collected suggestions, organized employees to offer energy-saving advices, and advocated green office.

Centering on the theme of ―My Contribution for Energy Conservation

and New Low-Carbon Life‖, we have organized various activities in the

Promotion Week throughout the nation from June 11 to 17. We were promoting the activities through advertisement, SMS, exchanges on energy-saving technologies, and the reports on OA office system. The activity has enhanced the staff’s sense of responsibility in energy conservation and emission reduction.

Implement Joint Construction and Resource Sharing

In 2011, China Unicom actively promoted the joint construction and resource sharing. Through the implementation of the Management

Methods of the Joint Construction and Resource Sharing of Telecom

Infrastructure, we have organized related trainings, promoted all the provincial companies to manage the accounts, streamlined the internal cooperation and external communication, worked on the settlement analysis system of joint construction and resource sharing, and improved the regualtions.

By the end of 2011, China Unicom has completed the tasks of the joint construction and resource sharing issued by MIIT and SASAC, with 72% joint construction of iron towers and 88% of sharing; 57% joint construction of banckbone lines and 89% of sharing. In addition, we have also promoted the progress of the Qinghai-Tibet Railway,

China-India cable, and the Beijing-Shanghai Railway. 80

The Joint Construction and Sharing by China Unicom in 2011

Type Unit Joint Sharing Sharing of other construction operators’ resources Iron towers 8497 5565 6305 Base stations 13267 6510 7646 Indoor distribution system set 4431 404 490 Backnone lines kilometer 6504 11817 14947 Transmission lines kilometer 18970 13507 16361 Channel kilometer 8986 883 740

It is estimated that in 2011, we have saved around 4 billion yuan in investment through the joint construction and sharing.

The Golmud-Lhasa optical cable is located in the high altitude and cold area, runs through Kunlun Mountains, Hoh Xil Mountains,

Fenghuo Mountains, Kaixin Mountains, and Tanggula Mountains, and goes across the Xieshui River, Chumaer River, Beilu River,

Tuotuo River, Tongtian River, Buqu River, Sangqu River, and

Za'gya Zangboqu River. The altitude of the cable is 4100 meter to

5300 meters. Since the start on July 15, 2011, we have overcome various difficulties, and completed the project with cooperation on

November 18, 2011. We have also finished the tests of

Golmud-Lhasa 10G WDM transmission system on December 7,

2011. The Golmud-Lhasa optical cable has meet the local requirements for optical fibers, and provided an example to improve long-distance network structure, increase the security and reliability of networks, enhance the resistance and competitiveness of networks, setting up a new mode for the cooperation between operators.

Participate in Public Welfare Undertakings

China Unicom is making efforts to give back to the society, guarantee and improve livelihood, provide assistance to poverty-stricken areas, participate in community construction, encourage employees to join in volunteer activities, and promote the building of a harmonious society.

Poverty Alleviation and Aid to Tibet

◎ Carry out Activities to Help the Poor and Needy

In the first year of the implementation of China Rural Poverty

Alleviation and Development Program (2011-2020), China Unicom has taken poverty alleviation and development as the main approach to help the people in poverty-stricken areas. We have assigned two cadres to serve as the Deputy Secretaries of the County Committee of Kangbao

County and Guyuan County, and allocated 2.2 million yuan to support the plantation of edible fungus and the introduction of dairy cows. We have coordinated the donation of 130 second-hand computers to support the rural informatization. Our efforts have promoted the regional economic development and realized good economic and social benefits.

At the same time, many Branches of China Unicom also made their contribution to the poverty alleviation undertakings.

China Unicom Liaoning Branch supported the development of

Nanshuangmiao Village of Chaoyang County. We have put in 0.89

million yuan, including 0.25 million yuan as the poverty alleviation

and development, focusing on the improvement of communications,

agriculture facilities, construction of rural roads, irrigation

construction, and education. The Branch has been awarded as the

Advanced Unit for Poverty Alleviation of Liaoning Province.

◎ Support the Development of Tibet

China Unicom started to provide support to Geji County in Ngari

Prefecture of Tibet in personnel, technologies, and fund since 2002. In

2011, we have carries out five supporting projects in Tibet with total investment of 12.91 million yuan, which has greatly improved the life quality of the local people.

Housing project for lowincome urban residents • Build 109 40-square meter houses for famers and herdsmen

Project to build rural entertainment sites • Build 4 rural entertainment sites

Project to build supporting facilities for the canteens constructed in 2010 • Complete the facilities for the canteens built in 2010

Project to expand the Yare Primary School

• Complete the maintenance of schools, canteens, and the campus to improve the study and living environment Project to build supporting facilities for low-cost housing • Complete the infrastructures for 76 low-rent housings and improve the

community environment

Donate Money for Education

China Unicom pays attention to the education, provides assistance to poor students, offers social practice opportunities for college students, and cares about children left in the rural areas.

◎ Set up the Love Fund by China Unicom Shanghai Branch

China Unicom Shanghai Branch has set up the fund to support the development of Diexi Primary School in the Maoxian County of Ngawa

Tibetan and Qiang Autonomous

Prefecture in Sichuan Province. We have supported the poor students and

awarded outstanding teachers. On June 1, 2011, China Unicom Shanghai

Branch has awarded prizes and bonuses to the students and teachers. In the past three years, around 100 students and teachers have received the scholarships of the Fund.

◎ Support Campus Start-up Businesses

China Unicom Shandong Branch has worked with the Provincial

Youth League Committee to set up the ―Future Youth Entrepreneurship

Community of China Unicom‖. In line with the objective of the

―promotion of start-ups and employment‖, we have supported the community from resource integration, post practice, and department cooperation. In the summer vacation, we have provided over 600 practice opportunities, setting up a platform of internship, business experience, start-up technical environment, and guide of supervisors for students.

We have set up remote 114 telephone operators, providing

working opportunities for educated disabled people. After trainings,

the disabled people could use VPN private lines to connect their

homes to the 114 platform, and they could provide services like

other operators at home. Currently, the first group of disabled people

havs worked on the posts.

◎ The Construction of the Spring Primary School

On April 14, the Spring Primary School of China Unicom was built in Youxian district of Mianyang City. Originally it was the Second

Primary School of Youxian district, which was destroyed in the

Wenchuan Earthquake. Through the coordination of CCTF, the new school was built up thanks to the 7.346 million yuan donation from China

Unicom’s employees. The 400 students now could study in the new

Spring Primary School of China Unicom. Starting from December 2009, the new school covers 4.1 acres and is capable of holding over 600 students. In the future, the staff of China Unicom will give more help to the students.

China Unicom Jiangsu Branch has built the care club through

credit exchanges. Users could donate credits through SMS or the

portal. In 2011, users have donated 20134609 credits equivalent to

188853.09 yuan. The Branch has also organized various activities to

provide assistances to poor students and the children living in the

previous revolutionary areas.

◎ Support the Growth of Children Left in the Rural Areas

In Sichuan Province, the Leshan Branch has worked with local

Communist Youth League to set up the ―Home for Children Left in the

Rural Areas of the Liberation

Primary School‖ in Heping, a Yi nationality county. The Leshan

Branch and the District Committee of Jinkouhe District Committee have

donated around 10000 yuan materials to the Liberation Primary School, including TVs, telephones, books, and sport goods. The establishment of the“Home for Children Left in the Rural Areas‖ has provided a warm and caring platform for the students.

In Zhejiang, the Quzhou Branch has proposed to set up the

―Assistant Fund for Children Left in the Rural Areas‖. The Fund is supported by the government fund, donations from domestic and overseas legal persons and national persons, and the fund raising from activities and cooperation projects. At the launching ceremony, female entrepreneurs have donated over 0.3 million yuan and the first group of

16 children has accepted the assistance.

Volunteer Service

China Unicom encourages employees to participate in volunteer activities to demonstrate the enterprise image. They have offered their service to the caring of children of migrant workers, teaching in rural areas, forest planting, and other public undertakings, wining the wide recognition and praise of the society.

Prospect for 2012

With the rapid development of mobile internet, IOT, and other new technologies and businesses, the information communication industry is moving towards a more dynamic, refined, and diverse market. Customer demands are more personalized, community-oriented, real-time, and interactive. In the future, we will become the practitioner of harmonious development and the promoter of the national economy and social informatization. We shall speed up scale growth and innovations and promote the common development of the company and the stake holders.

Closely seizing the opportunity of 3G and the broadband, we will speed up the business growth, focus on structure adjustment, and content applications, open cooperation, expand mobile internet and information applications, push forward livelihood projects, raise development quality and benefits, and strengthen the growth of the communication industry.

We will consolidate the basic capacity, strengthen the network capacity, expand 3G network coverage, speed up the construction of fiber networks, and provide effective communication guarantee; enhance IT support and build the integrated supporting system; strengthen the service capacity and accelerate the transfer of services to the internet and e-channels; strengthen technical innovations, the development of new technologies and applications, and capacity reserve.

We shall adapt to the requirements of the new situation, improve the management with innovative ideas and measures, push forward the reforms in key areas and links, build the brand image, optimize the operation management system, and comprehensively raise operation efficiency and the soft power.

We will strengthen the culture construction of the company and stimulate the vitality of our teams; promote the applications of energy-saving technologies; support public welfare undertakings to promote harmonious communities; focus on the operation responsibility overseas and constantly raise the enterprise image and brand influence.

Social Appraises

China Unicom’s efforts in social responsibility have won comprehensive recognition and praise from all social sectors. In 2011, we have won the following awards:

 National Advanced Corporation in Open Enterprise Affairs and

Democratic Management, Best Prize in the Progress in Investor

Relations, and the Best Listed Company in Social Responsibility.

 Break the Limitation of Informatization and Promote the New

Type of Rural Cooperative Medical Care of China Unicom has

been selected into the Best Social Responsibility Practices of

Central Enterprises in 2011 by SASAC.

 China Unicom’s portal has been listed as the Level-A Performace

in Central Enterprises by SASAC.

 China Unicom (HK) has been selected as the Most Potential

Chinese Enterprise in 2011 by The Asset.

 China Unicom Hunan Branch has won the Title of the National

Enterprise of Harmonious Labor Relations.

 The Branch in the fourth district and other 15 Branches have won

the Honorary Title of the ―Third Group of National National

Civilized Unit‖.

 China Unicom, Beijing Branch, and other 14 units have won the

Excellence Award in the National Knowledge Contest on Safety

Production Responsibility.

 China Unicom Jilin Branch and Hunan Branch have been awarded

the National Labor Certificate by ACFTU, and 13 groups have

been awarded the honorary Title of National "Pioneer Workers".

 China Unicom Beijing Branch has won the Advanced Unit in the

Legal Education of Central Enterprises and the Advanced Group

in the Campaign against Mobile Phone Pornography Information.

 China Unicom Shandong Branch has won the Advanced Unit in

the National Safety Production Month in 2011 by seven

Ministries.

 China Unicom Hong Kong Operating Company has won the Best

Operator Partner for SMEs of Hong Kong.

 China Unicom Shanghai Branch has won China’s Best Customer

Liaison Center—Customer Service in 2011.

 The customer call center of China Unicom Tianjin Branch has

won the National Woman Civilization Station.

 China Unicom Shenzhen Branch has won the Advaned Unit for

the Communication Guarantee and Service of Shenzhen

Universiade.

 China Unicom has won one Red Youth League of Central

Enterprises, one Establishment Unit of Red Youth League, and

one Red Youth League Branch.

 The 25 management innovations of China Unicom have won the

National Outstanding Achievements Prize of the Communication

Industry, and the company has won the Excellent Organization

Prize in the 8th Management Innovation Ceremony.

 The Virtualized Data Center of China Unicom has won the First

Prize in the Innovation of Communication Business of 2011.

About the Report

As the fifth social responsibility report, the report is compiled in light of China Unicom’s reality and with reference to G3 edition regulations constituted by Global Reporting Initiative (GRI) and the supplementary standards of communications industry report, and

Implementation of the Hamonious Development Strategy of State-owned

Enterprises in the 12th Five-Year Plan issued by SASAC. In the principle of reality, impersonality and transparency, the report covers some key information in relation to China Unicom’s implementation of economic responsibility, environmental responsibility and social responsibility.

Time span of the report is from Jan1, 2011 to Dec 31, 2011, and ceratin contents have exceeded the above time spa. All cases and data are from

China United Network Communications Group Company Limited.

Thank you for your time. China Unicom looks forward to your feedback so that we can do better.

You may contact us through the following ways:

Address: No.21 Financial Street, Xicheng District, Beijing, China

Postal code: 100033

Tel: +86-10-66257505

Fax: +86-10-66258674

For more information about our Company, please visit our website:

http://www.chinaunicom.com

GRI index

Whether or not Location in No. Contents it is relevant in the this the report report

Strategy and Analysis

Statement from the most senior decision- maker of 1.1 the organization about the relevance of sustainability ● P1-3 to the organization and its strategy

1.2 Description of key impacts, risks, and opportunities ● P1-3

Organizational Profile

2.1 Name of the organization ● P3

2.2 Primary brands, products, and/or services ● P4,P18

2.3 Operational structure of the organization ● P7

2.4 Location of organization's headquarters ● P96

Names of countries where the organization operates, 2.5 and names and number of countries that are relevant ● P4-5 to the report

2.6 Nature of ownership and legal form ● P4

2.7 Markets served ● P4

2.8 Scale of the reporting organization ● P4-5

Significant changes during the reporting period 2.9 ● P4-5,P7-8 regarding size, structure, or ownership

P26,P38, 2.10 Awards received in the reporting period ● P93-95

Report Parameters

Reporting period (e.g., fiscal/calendar year) for 3.1 ● P96 information provided

3.2 Date of most recent previous report (if any) ● P96

3.3 Reporting cycle (annual, biennial, etc.) ● P96

Whether or not Location in No. Contents it is relevant in the this the report report

Contact point for questions regarding the report or its 3.4 ● P96 contents

3.5 Process for defining report content ● P96

3.6 Boundary of the report ● P96

State any specific limitations on the scope or 3.7 ● P96 boundary of the report

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other 3.8 ○ entities that can significantly affect comparability from period to period and/or between organizations

Data measurement techniques and the bases of 3.9 ● P96 calculations

Explanation of the effect of any re-statements of 3.10 information provided in earlier reports, and the ○ reasons for such re-statement

Significant changes from previous reporting periods 3.11 in the scope, boundary, or measurement methods ○ applied in the report

Table identifying the location of the Standard 3.12 Disclosures in the report, identify the page numbers ● P96 or web links

Policy and current practice with regard to seeking 3.13 ● P93-95 external assurance for the report

Governance

4.1 Governance structure of the organization ● P7-9

Indicate whether the Chair of the highest governance 4.2 ● P6 body is also an executive officer

For organizations that have a unitary board structure, 4.3 state the number of members of the highest ○ governance body that are independent and/or

Whether or not Location in No. Contents it is relevant in the this the report report

non-executive members

Mechanisms for shareholders and employees to 4.4 provide recommendations or direction to the highest ● P8-9,P26 governance body

Linkage between compensation for members of the 4.5 highest governance body, senior managers, and ● P27 executives, and the organization's performance

Processes in place for the highest governance body to 4.6 ● P8-9 ensure conflicts of interest are avoided

Process for determining the qualifications and 4.7 expertise of the members of the highest governance ○ body

P1-3, Internally developed statements of mission or values, P10-13,P21, codes of conduct, and principles relevant to 4.8 ● P25,P33, economic, environmental, and social performance P49,P70, and the status of their implementation P76,P83

Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social 4.9 performance, including relevant risks and ● P7-10 opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles

Processes for evaluating the highest governance 4.10 ● P7-10 body's own performance

Explanation of whether and how the precautionary 4.11 approach or principle is addressed by the ● P13-17 organization

Externally developed economic, environmental, and 4.12 ● P96 social charters, principles, or other initiatives to

Whether or not Location in No. Contents it is relevant in the this the report report

which the organization subscribes or endorses

Memberships in associations (such as industry 4.13 associations) and/or national/international advocacy ● P1,P93-95 organizations

List of stakeholder groups engaged by the 4.14 ● P11-12 organization

P11-12,P25, Basis for identification and selection of stakeholders 4.15 ● P49,P70, with whom to engage P83

P8-10,P20, 4.16 Approaches to stakeholder engagement ● P25,P62-74

Key topics and concerns that have been raised P11-12,P20, through stakeholder engagement, and how the 4.17 ● P25-26, organization has responded to those key topics and P62-74 concerns

Economic benefits specifications

EC1 Direct economic value generated and distributed ● P1-2,P33

Financial implications and other risks and EC2 opportunities for the organization's activities due to ● P17-18 climate change

Coverage of the organization's defined benefit plan P25-32, EC3 ● obligations P64

Significant financial assistance received from EC4 ○ government

Range of ratios of standard entry level wage EC5 compared to local minimum wage at significant ○ locations of operation

Policy, practices, and proportion of spending on EC6 locally-based suppliers at significant locations of ● P33,P71-74 operation

100

Whether or not Location in No. Contents it is relevant in the this the report report

Procedures for local hiring and proportion of senior EC7 management hired from the local community at ● P25 locations of significant operation

Development and impact of infrastructure investments and services provided primarily for P34-36, EC8 ● public benefit through commercial, in- kind, or pro P88-89 bono engagement

Understanding and describing significant indirect EC9 ● P49-69 economic impacts, including the extent of impacts

Social benefits specifications

Total workforce by employment type, employment LA1 ● P25 contract, and region

Total number and rate of employee turnover by age LA2 ○ group, gender, and region

Benefits provided to full-time employees that are not LA3 provided to temporary or part-time employees, by ○ major operations

Percentage of employees covered by collective LA4 ● P25 bargaining agreements

Minimum notice period(s) regarding operational LA5 changes, including whether it is specified in ○ collective agreements

Percentage of total workforce represented in formal joint management–worker health and safety LA6 ● P22 committees that help monitor and advise on occupational health and safety programs

Rates of injury, occupational diseases, lost days, and LA7 absenteeism, and number of work- related fatalities ● P31-32 by region

LA8 Education, training, counseling, prevention, and ● P22 risk-control programs in place to assist workforce

101

Whether or not Location in No. Contents it is relevant in the this the report report

members, their families, or community members regarding serious diseases

Health and safety topics covered in formal LA9 ● P29 agreements with trade unions

Average hours of training per year per employee by LA10 ○ employee category

Programs for skills management and

lifelong learning that support the continued LA11 ● P29-30 employability of employees and assist them in managing career endings

Percentage of employees receiving regular LA12 ● P26-28 performance and career development reviews

Composition of governance bodies and breakdown of employees per category according to gender, age LA13 ○ group, minority group membership, and other indicators of diversity

Ratio of basic salary of men to women by employee LA14 ● P26 category

Human Rights

Percentage and total number of significant investment agreements that include human rights HR1 ○ clauses or that have undergone human rights screening

Percentage of significant suppliers and contractors HR2 that have undergone screening on human rights and ○ actions taken

Total hours of employee training on policies and procedures concerning aspects of human rights that HR3 ○ are relevant to operations, including the percentage of employees trained

102

Whether or not Location in No. Contents it is relevant in the this the report report

Total number of incidents of discrimination and HR4 ● P26,P29 actions taken

Operations identified in which the right to exercise freedom of association and collective bargaining may HR5 ○ be at significant risk, and actions taken to support these rights

Operations identified as having significant risk for HR6 incidents of child labor, and measures taken to ● P27 contribute to the elimination of child labor

Operations identified as having significant risk for incidents of forced or compulsory labor, and HR7 ● P27-28 measures to contribute to the elimination of forced or compulsory labor

Percentage of security personnel trained in the organization's policies or procedures concerning HR8 ○ aspects of human rights that are relevant to operations

Total number of incidents of violations involving HR9 ○ rights of indigenous people and actions taken

Anti-corruption issue

Nature, scope, and effectiveness of any programs and S01 practices that assess and manage the impacts of ● P13-14 operations on communities

Percentage and total number of business units S02 ● P13-14 analyzed for risks related to corruption

Percentage of employees trained in organization's S03 ● P13-14 anti-corruption policies and procedures

S04 Actions taken in response to incidents of corruption ● P13-14

Public policy positions and participation in public S05 ● P13-14 policy development and lobbying

103

Whether or not Location in No. Contents it is relevant in the this the report report

Total value of financial and in-kind contributions to S06 political parties, politicians, and related institutions ○ by country

Total number of legal actions for anti- competitive S07 behavior, anti-trust, and monopoly practices and their ○ outcomes

Monetary value of significant fines and total number S08 of non-monetary sanctions for non- compliance with ○ laws and regulations

Product Responsibility

Life cycle stages in which health and safety impacts of products and services are

PR1 assessed for improvement, and percentage of ○ significant products and services categories subject to such procedures

Total number of incidents of non-compliance with regulations and voluntary codes concerning health PR2 ○ and safety impacts of products and services during their life cycle

Type of product and service information required by procedures, and percentage of significant products PR3 ● P4 and services subject to such information requirements

Total number of incidents of non-compliance with regulations and voluntary codes concerning product PR4 ○ and service information and labeling, by type of outcomes

Practices related to customer satisfaction, including PR5 ● P19,P64-69 results of surveys measuring customer satisfaction

Programs for adherence to laws, standards, and PR6 ● P15 voluntary codes related to marketing

104

Whether or not Location in No. Contents it is relevant in the this the report report

communications, including advertising, promotion, and sponsorship

Total number of incidents of non-compliance with PR7 regulations and voluntary codes concerning ○ marketing communications

Total number of substantiated complaints regarding PR8 breaches of customer privacy and losses of customer ○ data

Monetary value of significant fines for non- PR9 compliance with laws and regulations concerning the ○ provision and use of products and services

Environmental protection benefits

EN1 Materials used by weight or volume ● P76

Percentage of materials used that are recycled input EN2 ○ materials

EN3 Direct energy consumption by primary energy source ● P76

EN4 Indirect energy consumption by primary source ○

Energy saved due to conservation and efficiency EN5 ● P76-80 improvements

Initiatives to provide energy-efficient or renewable EN6 energy based products and services, and reductions ● P76-80 in energy requirements as a result of these initiatives

Initiatives to reduce indirect energy consumption and EN7 ● P78-79 reductions achieved

EN8 Total water withdrawal by source ○

Water sources significantly affected by withdrawal of EN9 ○ water

Percentage and total volume of water recycled and EN10 ○ reused

105

Whether or not Location in No. Contents it is relevant in the this the report report

Location and size of land owned, leased, managed in, EN11 or adjacent to, protected areas and areas of high ○ biodiversity value outside protected areas

Description of significant impacts of activities, products, and services on biodiversity in protected EN12 ○ areas and areas of high biodiversity value outside protected areas

EN13 Habitats protected or restored ○

Strategies, current actions, and future plans for EN14 ○ managing impacts on biodiversity

Number of IUCN Red List species and national EN15 conservation list species with habitats in areas ○ affected by operations, by level of extinction risk

Total direct and indirect greenhouse gas emissions by EN16 ○ weight

Other relevant indirect greenhouse gas emissions by EN17 ○ weight

Initiatives to reduce greenhouse gas emissions and EN18 ○ reductions achieved

EN19 Emissions of ozone-depleting substances by weight ○

NO, SO, and other significant air emissions by type EN20 ○ and weight

EN21 Total water discharge by quality and destination ○

EN22 Total weight of waste by type and disposal method ○

EN23 Total number and volume of significant spills ○

Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel EN24 ○ Convention Annex I, II, III, and IV, and percentage of transported waste shipped internationally

106

Whether or not Location in No. Contents it is relevant in the this the report report

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly EN25 ○ affected by the reporting organization's discharges of water and runoff

Initiatives to mitigate environmental impacts of EN26 products and services, and extent of impact ○ mitigation

Percentage of products sold and their packaging EN27 ○ materials that are reclaimed by category

Monetary value of significant fines and total number EN28 of non-monetary sanctions for non- compliance with ○ environmental laws and regulations

Significant environmental impacts of transporting products and other goods and materials used for the EN29 ○ organization's operations, and transporting members of the workforce

Total environmental protection expenditures and P34,P58, EN30 ● investments by type P76-78

Note: "●" indicates that it is relevant or sufficient in this report, "○" indicates that due to statistical and other reasons, some data are not able to be provided for the moment, or due to features of telecoms operating enterprises, the relevance is rather weak, therefore it will not be explained one by one in the text of this report.

GRI Telecoms Index

Whether or Location not it is No. Contents in the this relevant in report the report

Internal Operations

Capital investment in telecommunication network P34-36,P58 IO1 ● infrastructure P80

107

Whether or Location not it is No. Contents in the this relevant in report the report

Net costs for service providers under the Universal Service Obligation when extending service to IO2 geographic locations and low-income groups, ● P58-61,P69 which are not profitable. Describe relevant legislative and regulatory mechanisms

Practices to ensure health and safety of field personnel involved in the installation, operation IO3 ● P22 and maintenance of masts, base stations, laying cables and other outside plant.

Compliance with ICNIRP (International Commission on Non- Ionising Radiation IO4 ● P76 Protection) standards on exposure to RF emissions from handsets

Compliance with ICNIRP guidelines on exposure IO5 ● P76 to RF emissions from base stations

Policies and practices with respect to Specific IO6 ○ Absorption Rate (SAR) of handsets.

Policies and practices on the siting of masts and transmission sites including stakeholder IO7 consultation, site sharing, and initiatives to reduce ● P34,P77-78 visual impacts. Describe approach to evaluate consultations and quantify where possible

Number and percentage of stand- alone sites, IO8 ● P34,P81 shared sites, and sites on existing structures

Approaches to Provide Communications

Policies and practices to enable the deployment of telecommunications infrastructure and access to PA1 ● P34,P58 telecommunications products and services in remote and low population density areas.

Policies and practices to overcome barriers for PA2 ● P33,P49-57 access and use of telecommunication products and

108

Whether or Location not it is No. Contents in the this relevant in report the report

services, including: language, culture, illiteracy, P64-69 and lack of education, income, disabilities, and age. Include an explanation of business models applied.

Policies and practices to ensure availability and P33, reliability of telecommunications products and PA3 ● P35-36, services and quantify, where possible, for P39-46 specified time periods and locations of down time.

Quantify the level of availability of telecommunications products and services in areas PA4 where the organization operates, including the ● P4,P33 number of customers, market shares, population penetration and area penetration

Number and types of telecommunication products and services provided to and used by low and no income sectors of the population, including how to P49,P58, PA5 ● set prices, such as call price per minute and P69 charges collected per flow in backward areas and so on.

Programmes to provide and maintain PA6 telecommunication products and services in ● P39-46 emergency situations and for disaster relief.

P49-51, PA7 Products and services related to human rights ● P58,P69

Move forward open discussions and propaganda in PA8 electro-magnetic radiation, including in relevant ● P76 information provided in retails locations

Capital investment in electro-magnetic study, PA9 please describe currently relevant on-going ● P76-78 projects in details

PA10 Maintain transparency in the tariffs aspect ● P49

109

Whether or Location not it is No. Contents in the this relevant in report the report

Proactively notify customers of features and performance of products, allowing customers to P19,P33, PA11 ● effectively, cheaply and ecologically use such P49-57 products

Technical Applications

Provide examples of the resource efficiency of P34-36, TA1 telecommunication products and services ● P81 delivered

Provide examples of telecommunication products, TA2 services and applications that have the potential to ● P50-57 replace physical objects

Disclose any measures of transport and/or resource changes of customer use of the P35 TA3 telecommunication products and services listed ● P76-80 above. Provide some indication of scale, market size, or potential savings

Disclose any estimates of the rebound effect

(indirect consequences) of customer use of the P50-54, TA4 ● products and services listed above, and lessons P58,P79 learned for future development. This may include social consequences as well as environmental

Description of practices relating to intellectual TA5 ● P36-39 property rights and open source technologies

Note:"●" indicates that it is relevant or sufficient in this report. "○" indicates that due to statistical and other reasons, some data are not able to be provided for the moment.

110