In the first six months of 2014, having aligned with the
development trends of mobile Internet and proactively
responded to challenges arising from various factors including
the increasingly saturated traditional telecommunications
market, fierce competition within the industry, the aggravated
substitution effect of Over the Top (OTT) products and the
adjustments of the relevant government policies, the Group
accelerated strategic transformation, intensified reform and
innovation, firmly seized the opportunities for 4G development,
endeavored to enhance its capabilities in network, marketing,
management and human resources, vigorously promoted its
operations of existing customers and business, data traffic and
corporate customer services, and enhanced business innovation
in digital services. As a result, the Company achieved favorable
results in its development. In the first six months of 2014, the
initial 4G development has been remarkable with 4G network
capabilities being rapidly built up, leading to rapid growth
momentum of 4G customer scale. During the same period, the
Company also maintained a solid customer base and continued
the rapid development of data traffic services, and achieved
stable operational results.