Sustainable Development

Sustainability Report

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Embracing the New Era while Keeping in Mind Why We Started

2017 is a significant year in the course of China's development, and it is also the 20th anniversary of our listing. Once only a mobile telecommunications service provider, we have grown in both scale and business scope over the past 20 years to become a world-leading provider of comprehensive information and communication services on all fronts adhering to the "connectivity-driven development" model. Always keeping in mind why we started, we have successfully transformed telecommunications service from a scarce resource in China enjoyed by only a few into a world-class public infrastructure benefiting one fifth of the world’s population, thereby serving as an important growth engine that drives economic development and improves people's livelihood with the digital innovation it initiates. This is not only a miracle in the telecommunications history of mankind, but also a grand embodiment of our corporate mission, in which every one of us who works at China Mobile should take great pride. In 2017, we continued to leverage our expertise in connectivity in fulfilling our corporate responsibilities with excellent progress in various aspects.

Leveraging expertise in connectivity to deliver ICT benefits. We are committed to building world-class information infrastructure and promoting the integrated development model of the "four growth engines", so as to provide network connection services of the widest coverage and best quality for individuals, households and corporate customers alike. By the end of 2017, we had a total of 1.87 million 4G base stations, covering 99% of the total population in China. We served 650 million 4G subscribers and 113 million customers chose our wireline broadband services. High-speed mobile Internet and broadband connection have become the primary means of information access. We have constructed the largest dedicated Internet of Things network in the world and launched NB-IoT (Narrow band-Internet of Things) in 346 cities. With a net addition of 126 million IoT smart connections in 2017, our IoT network consisted of 229 million connections, building a solid foundation for achieving the Internet of Everything. We continued to reduce the cost of information and communication services by canceling handset domestic long-distance and roaming charges and significantly reducing the dedicated Internet access tariffs for small and medium-sized businesses, thereby further enhancing the accessibility of digital services for society and the sense of gain from IoT benefits.

Strengthening innovation-driven integrated development. We continued to strengthen our research on key technologies and leadership in new standards and led industry development by playing a leading role in the development of international standards for 5G network architecture. We kept strengthening our business innovation and actively explored new connectivity applications for popular scenarios around people's daily life, entertainment and consumption, bringing great convenience and rich choices to people's lives. We created a leading platform of copyrighted digital content in China, serving 500 million subscribers with nine major digital content products installed on over 1 billion devices. Focusing on the key areas of industry, agriculture, education, public administration, finance, transportation and medical care, we promoted the deep integration between information technology and the real economy and accelerated the transformation and upgrade of traditional industries in order to foster new drivers of growth for society. We continuously strengthened management innovation and strove to adapt to the new era by building a flat, agile and efficient digital organization.

Deepening opening-up and cooperation to build industrial ecology. We fully implemented the 139 Cooperation Plan and opened up over a hundred core capabilities to society. Our communication capability open platform has served over 130,000 enterprises, our unified authentication platform has processed an average of more than 500 million accreditations per day, and our OneNET IoT platform has converged 6,500 enterprises and provided capacity building services to 56,000 developers. Our "Mass Entrepreneurship and Innovation" initiatives provided our 154,000 employees with all-around resource support, and our crowdsourcing platform created a new mode of employment and promoted the collaborative development of businesses of different sizes. We also deepened the strategic cooperation with local governments, large businesses and international operators to jointly create a new ecology for digital services.

Fulfilling social responsibilities for a better future.We have made great efforts in fighting against information fraud to ensure safe and pleasant consumption experiences. In the last decade, we performed over 41,000 emergency communication support tasks for various occasions and ensured reliable connection for those in need. Through the Rural Broadband Demonstration Project and the Telecommunication Universal Service Project, we brought broadband services to over 35,000 villages cumulatively, further narrowing the urban-rural digital divide. We supported targeted poverty alleviation with preferential tariff plans, and our independently-developed targeted poverty alleviation system covered 6.64 million people in poverty. We also continued our full support for the targeted aid programs and developmental programs in targeted poverty alleviation counties. We continued to carry out the China Mobile "Blue Dream" Educational Aid Plan and the "Heart Caring" Campaign, cumulatively providing training for about 104,000 rural primary and secondary school principals in central and western China and sponsoring the surgery of 4,498 impoverished children with congenital heart disease. We conducted the "Green Action Plan" for the eleventh consecutive year, promoting energy saving grading standards and green packaging for communication equipment to play a part in tackling climate change and building a beautiful China.

Never forget why you started, and your mission can be accomplished. Standing on the starting point of the new era, we will adhere to the new development concept of "innovation, harmony, green, open and sharing", and continue to implement our "Big Connectivity" strategy. We will actively promote the construction of a new generation of information infrastructure that is fast, mobile, safe, omnipresent and intelligent, vigorously advance the innovation in 5G, Internet of Things, big data, cloud computing, artificial intelligence and other cutting-edge technologies, and constantly develop new business formats and models, so as to become a world-class enterprise with global competitiveness and a contributor to building a more inclusive and more sustainable intelligent world. We will stand firmly by the side of our stakeholders to forge ahead in close cooperation to welcome the coming of a new era that is more prosperous and more beautiful!

March, 2018

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