Within the enterprise, China Mobile has emphasized cost control, actively promoted conservation awareness among its employees, saved on energy and lowered consumption. China Mobile is promoting paperless administration and replacing traditional meetings with video conferencing and is implementing reforms to its car-use policy to promote energy efficient car usage.

We are actively promoting the development of energy saving product by its suppliers. In 2005 and 2006, China Mobile, through the bid for Base Station Energy Saving Integrated Air Conditioners, the development of technology is actively promoted by manufacturers in this area and lowering of manufacturing cost. In May 2006, a promotional seminar was held for the experimental use of the product, which allowed us to accumulate
know-how for the wider use of Base Station Energy Saving Integrated Air Conditioners through exchanges on technology, maintenance, and usage, etc.

Actions

• In Jiangsu, we promoted the "Old Card New Use" initiative in 2006, and contemporaneously started "total recycling" for SIM cards. As at 30 September 2006, nearly 30,000 subscribers had signed up to the "Old Car New Use" service, effectively conserving resources and meanwhile, over 700,000 SIM cards were recycled province wide.

• In Shanghai, we issued e-value cards. When the customer needs to buy a phone card, POS terminals will directly print the data of the value card onto a piece of paper, thereby reducing the traditional inventory and logistic cost of phone cards. It also eliminates the problem of value card expiration and reduces security risks of managing value cards over the counter. For consumers, printing on an as-needed basis reduces wastage. Currently, Shanghai Mobile issues value cards worth RMB550 million every month, RMB350 million of which is e-cards, RMB200 million is regular cards; e-cards amount to 63% of the volume of cards issued.

• We have adopted a series of effective measures to conserve energy on office administration. For example, the central air conditioning of the Hunan Mobile office building consumed RMB2.4 million annually. After changing the central air conditioning to oil boiler and electric air conditioning in 2004, the cost of energy was reduced to RMB1.6 million annually.