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Sustainable Development

Sustainability Report

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Co-creation of Big Connectivity, Co-sharing a New Future

2016 marked the beginning of China's implementation of the 13th Five-Year Plan for economic and social development and was also the first year when the 2030 Agenda for Sustainable Development of the United Nations was put into practice. This year, China Mobile announced its strategy of "Big Connectivity" for the development in the next five years and its medium- and long-term strategic vision "to become a global leading operator in innovative digital services". This also represented China Mobile’s commitment to create shared value, achieve win-win cooperation with stakeholders and realize sustainable development with "connectivity". In 2016, China Mobile attained the following achievements:

First, we boosted our connectivity scale and narrowed the digital divide. As of the end of 2016, the Company had established 1.51 million 4G base stations and realized full coverage in regions of township-level and above covering a population of over 1.3 billion. The number of 4G customers reached 535 million; and there was one China Mobile customer for every three 4G customers globally. The Company had over 100 million Internet of Things (IoT) connections, and the number of wireline broadband customers exceeded 77 million. The Company provided wireline broadband access to over 4,900 administrative villages cumulatively through our telecommunication universal service project, resulting in an ever-increasing proportion of villages with China Mobile wireline broadband access.

Second, we optimized our connectivity service and boosted the digital economy. The Company earnestly implemented "Speed Upgrade and Tariff Reduction" with a 36% year-on-year decrease in data traffic tariff, benefiting a total of 1.2 billion customers by various tariff reduction measures and further lowering the entry barrier for more individuals and corporates to share the digital dividends. The Company created the internal "Mass Entrepreneurship and Innovation" incubation mechanism and platform, attracting 135 thousand employees to participate extensively. The Company launched the "3+1" Capacity Service System comprising the telecommunication capacity open platform, unified authentication platform, OneNET platform of IoT and smart home gateway platform to proactively open up its own capacities and stimulate social innovation and entrepreneurship.

Third, we strengthened our connectivity application and realized value co-creation. The Company built an open and win-win new industry ecology of value co-creation and comprehensively provided intelligent services for governments and corporates to serve over 5 million corporate customers, and offered integrated industry solutions to sectors such as public administration, finance, transportation, education, healthcare and energy to drive industry transformation and upgrade. The Company focused on hot issues of social development, conducted innovative development of information applications benefiting the people and provided practical support for improving the people’s livelihood in many aspects including the establishment of intelligent agriculture, improvement of rural healthcare and safeguarding of urban food safety.

Fourth, we proactively fulfilled our responsibilities and shared development achievements. The Company strongly fought against telecommunications fraud, and in 2016, 2.4 billion spam messages were blocked and over 100 million fraudulent calls from overseas were intercepted. The Company established the "Energency Communication Support 2.0" system and successfully completed emergencey communication support tasks for over 4,000 times. The Company set up a platform promoting targeted poverty alleviation, supporting poverty alleviation with informatization. The Company initiated the "Five Kinds of Small Places" construction of heart-warming project, employee assistance program (EAP) and "Happiness 1+1" activity and continued to implement the "Blue Dream" and "Heart Caring Campaign" projects, cumulatively providing training opportunities for over 90 thousand principals of rural schools in central and western China and free surgery treatment for over 3,600 children in poverty with congenital heart disease. The Company carried out the "Green Action Plan" for the tenth consecutive year and the overall energy consumption per unit of information flow decreased by 36% as compared to the end of the previous year, and also provided powerful support for constructing ecological civilization by developing green ICT solutions.

In 2016, the Company was included in the Dow Jones Sustainability Indices (DJSI) for the ninth consecutive year and its achievements in the sustainable development were recognized. Although encouraging progress has been made, we know very well that the journey of "Big Connectivity" of the Company has just begun, and that "Internet of Everything" brings not only new opportunities but also new challenges as well as new responsibilities. "Be thankful to the tree when picking fruits from it, and be grateful for the water source when drinking." In the future, China Mobile will continue to fulfill its responsibilities, proactively take part in the "Cyberpower" construction of China, fully support the "Internet+" development and go forward hand in hand with stakeholders to jointly create a shared digital society benefiting the most people. Meanwhile, China Mobile is also willing to contribute to the sustainable development goals of the United Nations with hard work and practice, forge ahead with determination and untiringly strive for our common bright future.



March, 2017

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