Cooperation

AN "ENABLER" OF INDUSTRY VALUE CO-CREATION

In the face of changing environment in the era of Internet of Things (IoT), seeking mutual benefit and win-win results through partnership and cooperation seems natural to the pattern of economic laws and social development. Placing cooperation as the fundamental strategic direction, China Unicom adheres to the cooperation philosophy of “joint discussion and development for win-win”, and has integrated core capabilities to empower its partners to achieve complementarity of ecological edges across industries and win-win cooperation, thereby building a smart partnering ecosystem meeting with people’s growing demand for a smart life.

DEEPENING COLLABORATION WITH PEERS

In order to uphold the cyber superpower strategy, as well as promoting the supply-side structural reforms to achieve high-quality development of the industry, China Unicom actively pushed forward the complementarity of edges and in-depth cooperation among industry peers in the fields of resources and innovation with the principle of “win-win cooperation for joint development”, so as to create the synergies in development and boosting telecom infrastructure and resources through co-build and co-share, thereby facilitating network construction and promoting cost reduction and efficiency enhancement.

Joining hands with industry peer to co-build 5G network

In thorough implementation of the new development philosophy, China Unicom joined hands with China Telecom to push forward the co-build and co-share of 5G network. Through building a single nationwide 5G network together, it could reduce duplicated construction while accelerating the deployment of the 5G network coverage, fully unleashing the resource advantages of both parties and maximising user perception and network performance.

Strengthening cooperation management

Adhering to the principles of “starting with easier tasks before moving on to harder ones, roughing out before refining, prioritising urgent tasks, advancing swiftly, and improving speedily”, the Company spared no effort to promote the all-round coordination and communication of all parties and teams. The “Network Operation Plan and Management Rules concerning Co-building and Co-sharing 5G NSA by China Telecom and China Unicom” jointly issued to specify on work division, data sharing, operational coordination, and other management mechanism, as well as major production workflows, achieving the expected goals of maintaining consistency in user perception, business experience, network quality and service support.

Optimising co-work plans

The 5G network co-build co-share will be based on co-share of access network and 5G spectrum resources but with core network to be constructed independently by each party. Both parties will delineate and designate the regions for construction of 5G network by each party. The party who is responsible for the construction in a designated region will bear the relevant investment, maintenance and operating cost of the network.

Achievements of network co-build co-share

In 2019, remarkable results were achieved in the 5G network co-build co-share, with over 50 cities achieved carrying network sharing and base stations in 31 provinces activated for sharing. The two parties co-built and co-shared approximately 20,000 base stations, and China Unicom saved approximately RMB3.5 billion in investment.

In-depth cooperation with terminal suppliers

Building a partnering and sharing mechanism

  • To respect the terminals suppliers and adopt relevant reasonable opinions while making improvement accordingly, the Company joins to provide users with rich terminals and pleasant mobile Internet experience, thereby driving rapid development of the 5G value chain.

  • The cooperation model for multiple terminal suppliers at the national and provincial levels was launched to establish an open and fair co-sharing mechanism for partnering with suppliers. The Company cooperated with more than 100 upstream and downstream terminal suppliers in a mutually beneficial way to iteratively optimise the entire supply chain, and to ensure that users enjoy better terminal products and services from China Unicom’s channels.

  • The Group introduced 174 cooperative strategic terminals. In order to meet with the needs of the growing pan-terminal market, the Company continued to increase cooperation with suppliers of new pan-intelligent terminals, introducing 119 new products throughout the year.

Innovative platform-based cross-industry cooperation

Clear cooperation philosophy with channel partners

  • Aiming to enhance Internet-oriented operation capability, the Company continued to innovate cooperation and deepen capability to empower transformation. Through resources consolidation, capability transfer and privilege cooperation, the Company created an ecological channel cooperation mechanism featuring win-win results among operators, channel partners and users, with sustainable high-quality development.

Innovating cross-industry cooperation model

  • By introducing platform-based partners, an exemplary model in cooperation with the postal industry was created, enabling replication of promotion of such model by cooperating with key partners focusing in finance, insurance, lottery, petrol station, and express delivery, achieving resource sharing and win-win cooperation were achieved.

  • Leveraging finance, supply chain, platform tools and other enabling tools to expedite business processing, speed up commission settlement, enhance operation capability, and drive partners’ transformation and development.

Expanding cooperation with mobile virtual network operators (MVNO)

Broadening the width and depth of cooperation

  • China Unicom has always actively supported the development of MVNO enterprises in a “proactive, cooperative, open and win-win” manner. In 2019, the Company conducted MVNO business in cooperation with 30 enterprises, expanding the scope of pilot operations to cover nearly 300 prefecture-level cities.

  • China Unicom has been actively promoting healthy development of the MVNO business, activating electric leakage warning, voice VPN, message alert billing, colour ring back tone and other functions and services, assisting MVNO partners to make business innovation. As at the end of 2019, the number of MVNO users reached 80.93 million.

Promoting innovation and cooperation with government and enterprises

China Unicom has fully played the advantages of the mixed-ownership reform and actively engaged in extensive and in-depth business cooperation with strategic investors in areas such as cloud computing, big data, Internet of Things and industry Internet.

  • The cooperation with Alibaba and Tencent on public cloud continued to deepen, recording a total of 92,000 customers; the cooperation with Alibaba and Tencent on secure IoT SIM cards was also launched; the Company deepened cooperation with strategic partners on IoT connections, adding 9.35 million new connections in 2019; the cooperation with Tencent on financial anti-fraud big data products has rolled out as well.

  • In cooperation with Baidu, Alibaba, Tencent, Huawei and other cloud service providers on cloud networking, the Company has offered customers with capability in hybrid cloud networking.

  • The Company cooperated with JD.com to jointly launch big-data-based credit score products.

Building capital cooperation ecology

China Unicom furthered expanded capital cooperation with strategic investors from the mixed-ownership reform, namely Baidu, Alibaba, Tencent and JD.com (BATJ) as well as industry-leading players, mutually driving business cooperation and meeting with customer demand.

  • In March 2019, Yunjing Wenlv Technology Company Limited was established as a joint venture with Tencent aiming to push forward the integrated development of “technology + culture + tourism”, with the focus in areas such as all-region tourism, big data and artificial intelligence, and cultural tourism marketing services, providing customers with intelligent, diversified, decent and high-quality information services for smart cultural tourism. Six products have been launched so far, with supporting work for key projects well underway across the country. Meanwhile, China Smart Cultural Tourism Industry Association was formally established, acting as an important platform for China Unicom and the industry partners to jointly serve the cultural tourism industry.

  • In April 2019, Smart Steps, a joint venture formed with Telefónica S.A., successfully introduced JD Digits as its strategic investor, which enabled it to integrate JD Digits' capabilities and resources for business development. The joint venture has rolled out four key products – “Jice”, “Jimu”, “Jizhi” and “Jidun”, and has provided services to various government ministries and commissions under the State Council and provincial and municipal governments and a number of global top 500 companies.


  • In August 2019, Yundee was established jointly with Kingdee Group to primarily engage in the R & D and operation of industrial Internet platform. Through in-depth integration of the Internet and traditional industries, it aimed to support China's manufacturing industry to accelerate and evolve towards digitalised, network-oriented and intelligent operations, thus pushing forward the high-quality development. As of now, China Unicom’s Yundee’s industrial Internet platform has officially launched.


  • In December 2019, iCloud Shield ( 雲盾智慧安全科技有限公司) was established jointly with Qi-Anxin to engage in development of network security products and services. iCloud Shield aims to boost the basic security protection and efficiency from the three aspects of “website security, situational awareness and security services” and provides customers with a variety of professional information security services, thereby creating a new ecology for network information security.