CHINA UNICOM COMMIT TO MAKE CONNECTED LIVING EASIER

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2014 年 6 月 CHINA UNICOM COMMIT TO MAKE CONNECTED LIVING EASIER Keduo XIN 10 th June, 2014

Connected Living is becoming true in China Total connections in China-2013 Connected living growing fast in scale Connected China Internet subscribers: 618M Internet penetration: 45.8% Mobile Internet subscriber: 500M Mobile Internet percentage: 81.0% M2M wireless connection: 50M Annual growth rate: over 40% M2M industrial scale: 500B Annual growth rate: 30% Source: CNNIC Source: MIIT

Connected Living is becoming true in China Comprehensive connected living solutions in line with global trend Smart manufacturing Wearable devices Food tracing Smart logistics Smart city Smart Home Intelligent Transport Connected driving Intelligent government E-education Smart healthcare Smart Grid Internet Mobile finance payment

Interaction through multi-screen is getting popular Interaction through multi-screen - make it true of anywhere and anytime With the popularity of smart devices and the forming of relevant standards, interaction through multi-screen has been successfully and widely adopted in daily life.

China government actively promote Connected Living Improving the Connected Living Ecosystem M2M becoming National Strategic Focus 2013/03, State Council has issued Guidance of promoting M2M development in healthy and orderly principles 47 National M2M standard plans released by National Standard Committee 10 M2M special action plan issued by several Ministries 193 smart cities announced National M2M identity management public service platform project starts by National Development and Reform Commission Few other considerations in China Policy Control Regulation Information Security Device Maker Government Platform Provider System Application Provider Service Provider Content Provider Network Operator

Telecom Operators actively participate in Connected living Telecom Operator is major player and driver Government Device maker System application provider Content & service provider Network Operator Telecom Operator will take a leading role in Connected Living development with its extensive advantages in network, talents, organization, operation as well as customers. Treat M2M as Corporate Strategic Business Area Continue network development, evolving from 3G to 4G Accelerate industry application mobilization Build dedicated network infrastructure as important foundation to support connected living Build industry user friendly management platform Aggregate the strengths of ecosystem for smart city Bring corporate advantage into connected living longterm operation

China Unicom regard Connected Services as one of the major strategic direction for future Connected services is one of the most important strategy sector For China Unicom, connected service development is very well in line with its corporate strategy, aiming to provide customer perfect Application Layer Networks Layer Perception Layer information service. It shares the same vision of the company, continue to enhance marketing leading solutions offering along with the network capability development. China Unicom shall leverage the advantages of principle Telecommunication Service Provider, innovate proactively, drive the connected living development at all aspects of technologies and areas. Professional organization & team Ubiquitous supporting network Application Platform on Cloud Total solutions in key areas

1. Professional customer support team Implementation Capability Professional Subsidiary HQ - Province - City 3-tier of sales teams, engaging in 13 top segments, e.g. government, finance and corporate. Marketing CU System Integration CU Info. Navigation CU Broadband Online Mobile Internet/M2M Experts Team Institute of R&D CUSI Technical support Cloud & IDC operation CU Mobile Payment XINGYE Communication Mobile Internet/M2M Industry Application Planning Team M2M Office Technical planning HUASHENG Wo online Store, Music, Reading National Industry Application Platform Operation Center M2M Platform Operation Center Platform operation

2. Ubiquitous supporting network Technology & Network Leadership Leading Network Standards Leading Global Roaming Leading Convergence Guarantee the telecom service reliability by dynamic routing over completely different physical networks. Leverage the advantage of smooth transition from GSM WCDMA FDD LTE; To build ubiquitous mobile broadband network 4G & 3G Integration Network Convergence Unified tariff Devices ecosystem Brand sharing

3. Dedicated core platform 应 用 平 台 物 流 应 用 平 台...... 汽 车 信 息 化 应 用 平 台 M2M-BSS 总 部 PRM M2MSP 总 部 CRM 总 部 Billing 全 国 专 用 网 元 集 客 集 中 支 撑 系 统 M-HLR M-GGSN M-SMSC 其 他 类 专 用 网 元 A 省 B 省...... SGSN SGSN SGSN 3G 2G 终 端 M2M National Management Platform Smart City Cloud Platform

4. Total solution practices in major area Collaborate with business partners, to provide total solutions in Mobile Office, M2M, Mobile Monitor and e-commerce areas. Mobile OA Adhere to leading Position Intelligent transportation Mobile administration Smart Grid Mobile Editing Mobile Office M2M Remote Control Mobile Sale Management Mobile Express Mobile Survey Service & Operation Environmental Monitoring Telematics Smart City City Surveillance Remote loss Evaluation Emergency Command Real time Video Mobile Video Nationwide centralized Commercial & Billing service, to provide consistent user experience One-stop shopping services for all partners E-business mbank mflight mstock Security monitoring mfutures Real time media broadcast mpayment Online Payment By April 2014, 3G industry applications users has exceeded 39 million.

5.1 Telematics practices Fully engagement China Unicom regards telematics as one of the strategic important area of IoT/M2M, committed to closely collaborate with OEMs in deploying Telematics service. TSP CP/SP OEM TSP CP/SP OEM Hardware Hardware manufacturer manufacturer China Unicom Telematics Services Infrastructure(CUTSI) Telecommunication Service TSSP Infotainment Service 3 rd Party Professional Service Call Center Service

5.1 Telematics practices Fully engagement (Cont. ) Premier service offering combing the capabilities from MNO, Call center, VAS and TSSP/TSP Telematics as one of China Unicom s main directions in M2M services. China Unicom, as a leading telecommunication service provider, will cooperate closely with OEMs to provide differentiated and localized services based on its own advantages in China. As a traditional information service provider, closely cooperate with partners in the ecosystem to provide competitive services and products. Consistent investment in M2M, including platform, call center, value added services etc. Devoted to provide persistent, stable management and operation.

5.2 Key capabilities deployment & consistent development Embedded-SIM OTA Capacity SIMs management platform Flexible business & service deployment Split billing Consistent & stable operation support High standards information security assurance Consistent Development As one of major partners, China Unicom proactively involves into GSMA euicc works to accelerate the technology evolution.

5.3 Broader collaboration Existing Partnership with 20 OEMs

2014 年 6 月 We Are Well Prepared to Make Connected Living Easier, Comfortable and Enjoyable Thank You