My opinion on the development of China Unicom

(1) Promoting development through reform

It should be said that the establishment of China Unicom is the product of the market-oriented reform of China Telecom. Since its birth, China Unicom has shouldered the heavy responsibility of breaking the ice of telecom monopoly.

Ten years ago, in order to deepen the reform and break the monopoly of China telecom industry, the CPC Central Committee and the State Council approved the establishment of China Unicom. This major move is a milestone in the development history of China Telecom.

In the early 1990s, as a strategic basic industry in the development of national economy, China telecom industry was still in a monopoly state, and the development of telecom business was far from meeting the needs of social life.

On the eve of drastic changes in the telecommunications industry, the increasingly strong market demand, new technological possibilities, the trend of global information industry reform, the government's determination to open the market, the wishes of consumers, various expert opinions and extensive public pressure have jointly formed an irresistible force-the development of China's telecommunications industry urgently needs to introduce a competition mechanism.

Facing the transition from planned economy to market economy, the reform of telecom industry will inevitably affect the redistribution of communication resources in the whole society. In the extensive discussion and debate, the scheme of establishing a new communication company jointly by the former Ministry of Machinery and Electronics, the Ministry of Electric Power and the Ministry of Railways has gradually attracted the attention of all parties. The original intention of establishing a new company is to give full play to the redundant communication capabilities of these ministries outside the private network communication, create new conditions for the survival and development of the domestic communication product manufacturing industry, and serve the public communication by mobilizing the enthusiasm of the private network and manufacturing industry.

In order to establish a joint communication company as soon as possible, the three ministries and commissions set up a joint leading group and conducted a series of investigations, demonstrations and discussions. Meanwhile, the State Council and the Central Committee of the Communist Party of China have made up their minds to break the monopoly and open the telecom market. The formation of China Unicom has gradually become clear.

1993 12 14 after two years of difficulties and twists and turns, the formation plan has finally achieved gratifying results. The State Council officially issued the official letter [1993] 178 "the State Council's Reply on Agreeing to Establish China United Communications Company", and agreed that the Ministry of Electronics, the Ministry of Electric Power and the Ministry of Railways should jointly establish China United Communications Co., Ltd., making it clear that China Unicom was established as a limited liability company, which is an economic entity with independent operation, independent accounting and self-financing and has legal personality. Enjoy the right to operate long-distance telephone (providing long-distance telephone by transforming and perfecting railways and power private networks), local telephone (in areas where the public local telephone network is not covered or the local telephone capacity is insufficient), wireless and telecom value-added services.

1994 July19, the inaugural meeting of China United Communications Co., Ltd. was held in Diaoyutai. Since then, China Unicom has embarked on a difficult journey of reform and development.

To complete the task of "breaking monopoly and introducing competition", we must form a "monopoly" strength with major telecom operators as soon as possible and become one of the main participants in China telecom market. The consciousness of "competition subject" is the challenge consciousness of emerging telecom operators who dare to compete with the original major operators, the management consciousness of improving overall strength and maximizing enterprise value, the development consciousness of realizing extraordinary and leap-forward take-off, and the positioning consciousness of becoming bigger, stronger and better in the market competition pattern. The expected result of the consciousness of "competitive subject" is not that it will become monopoly again by anti-monopoly, but that it will realize fair and just competition with domestic brother-run enterprises; The ultimate goal is not to nibble at each other, but to create a multipolar, dynamic and mutually promoting situation; It is not the mutual shopping between brother enterprises, but the ability to "dance with wolves" can be honed before facing the more intense wave of international competition.

Under the strong impact of China Unicom's competition, the telecom competition pattern has rapidly formed in the process of splitting and restructuring. Operators adopt new technologies, actively carry out business and service innovation, actively improve service quality and strive to improve management level. Thanks to the competition of China Unicom, China Telecom's services are rapidly enriched, the service quality is greatly improved, the service charges are continuously reduced, and the management level of each operating enterprise is continuously improved. Competition has brought new choices to users and greatly promoted the prosperity of the industry.

(B) the development of reform

Of course, China Unicom is not satisfied with just bringing competition to the telecom market. Since its establishment, in the constant competition and development, China Unicom, with its rapid development, has set off a huge wave of telecommunications reform, promoted the industry to "reform in development and develop in reform", and realized the development and growth of enterprises and the entire telecommunications industry.

Before 1998, it was the arduous pioneering stage of China Unicom. At this stage, the foundation of the company's development is very fragile. In more than four years, under extremely difficult conditions, several leading groups and all employees of the company worked hard and broke ground in the monopolized telecom market. In accordance with the principle of "wireless starts first, mobile comes first", they overcame many difficulties while establishing, building and developing, built the second public mobile communication network in China, developed 6,543,800 mobile phone users, and laid nearly 10,000 kilometers of optical cables. Through hard work, the company introduced competition in the field of telecommunications and laid the foundation for its further development. However, the company still faces a difficult living environment.

From 65438 to 0999, China Unicom took the opportunity of company reorganization and entered a leap-forward development stage. On February 10 of that year, the State Council made major adjustments to the leadership of China Unicom and appointed Yang Xianzu as Party Secretary, Chairman and General Manager of China Unicom. The Ministry of Information Industry appointed Wang Jianzhou as the executive deputy general manager and Shi Cuiming as the deputy general manager. The adjustment and enrichment of the leadership of China Unicom Company is an important measure made after the establishment of the Ministry of Information Industry in accordance with the principles of separating government from enterprises, introducing competition, promoting development and breaking monopoly, and combining with the reorganization of China Telecom.

With the care and support of the State Council and relevant state departments, the company's leadership team seized the opportunity, conscientiously implemented the spirit of the important instructions of the CPC Central Committee and the State Council, and made a series of major decisions to accelerate development. In more than four years, the company cleared up "Chinese and foreign" projects, completed asset reorganization, realized domestic and foreign listing, and built and opened CDMA network. Under the guidance of the overall development strategy of "two innovations, two high technologies and one integration" (establishing new mechanisms, building new networks, adopting high technology, realizing high growth and developing comprehensive services), the company has developed rapidly and become one of the main competitors in the domestic telecom market.

Capital operation is generous.

As a new telecom operator, after 1999, with the cancellation of initial installation fee and network access fee, China Unicom can't rely on the policy to obtain enough development funds except flexible tariff policy. With the care and support of the State Council and relevant state departments, the leading group of the company has made a series of major decisions and established the reform ideas of reshaping the corporate governance structure, establishing a modern enterprise system, listing and financing, and rebuilding the development foundation of the company.

The first step is to thoroughly clean up the "Chinese and foreign" projects and clarify the property rights relationship. From 1999, after more than one year and 6 10 hard negotiations, China Unicom obtained all the rights and interests of the project assets and repaid 146 billion yuan to overseas investors according to the policy. All the funds used were solved by Unicom loans, and no money was asked from the state.

The second step is to reorganize assets strategically and adjust the shareholder structure. According to the plan approved by the State Council, Guo Xin Paging Company has been transferred to the organizational system, which has increased the state capital and the original shareholders' capital. The company's capital increased to 65.438+0.588 billion yuan, with state shares accounting for 79. 18%. China Unicom has since become a large-scale joint-stock telecom operator effectively controlled by the state.

The third step is to go public overseas, introduce international corporate governance norms, and realize the integration of corporate governance structure with international standards. In June 2000, according to the principle of "overall listing and step-by-step implementation" approved by the State Council, China Unicom successfully listed in Hong Kong and new york, raising 5.65 billion US dollars, making it the largest initial public offering in Hong Kong's history and ranking among the top 10 in the history of global initial public offerings. The acquisition of huge funds has greatly promoted the development of China Unicom. One year later, due to its good business performance and rapid development, China Unicom shares were listed on the Hang Seng Index.

The fourth step is to go public in the domestic A-share market and expand the equity and financing base. On June 9, 2002, 10, China United Communications Co., Ltd. was listed on the Shanghai Stock Exchange, raising funds of11500 million yuan. Become the first basic telecom operator to enter the A-share market, and become the enterprise with the largest number of shares circulating among domestic listed companies. The funds obtained once again promoted the development of China Unicom, especially provided reliable financial support for the construction of a new generation of mobile communication network-CDMA network, which enabled domestic investors to share the achievements of the rapid development of China's telecommunications industry.

The fifth step is to realize the "overall listing" of the company's core business through two capital injections. In February 2002, 65438 and February 2003, the company completed the capital injection of mobile business and assets in nine provinces respectively. Through two capital injections, the company realized the overall listing of its core business.

Wang Jianzhou, chairman of China Unicom, told reporters that the significance of listing for China Unicom is beyond the imagination of ordinary people. Listing not only enables China Unicom to have two financing channels at home and abroad, but more importantly, as a super-large state-controlled telecommunications enterprise subject to multiple supervision by domestic and foreign capital markets, China Unicom reshapes the company management system according to the modern enterprise system, establishes and improves the shareholders' meeting and the board of directors, introduces independent directors into listed companies, and actively plays its role to standardize the corporate governance structure. Today, China Unicom has become an integrated telecom operation enterprise governed by modern enterprise system and international norms.

Network construction has taken a big step.

In recent ten years, China Unicom has built an integrated communication network covering the whole country and connecting the world. 1999 ~ 2003, in order to meet the needs of the market, the company carried out large-scale communication network infrastructure construction, and accumulated fixed assets investment of more than 200 billion yuan, with an average annual investment scale of more than 40 billion yuan. By the end of 2003, the company had built a nationwide mobile communication network with a total capacity of 654.38+200 million households. Among them, on May 38+0, 2006, the national CDMA mobile communication network with international advanced level was built and opened in just over half a year, and its construction scale and speed are unprecedented in the history of world mobile communication development. On March 28th, 2003, China Unicom upgraded the whole CDMA network to CDMA1X. At present, the company is accelerating the construction of CDMA boutique network. The company has built and opened 570,000 kilometers of optical cable trunk lines. It took the lead in adopting unified basic network platform technology in China, built a national long-distance telephone network, data communication network and Internet with Unicom characteristics, and opened IP telephone, Internet, video conference system, videophone system and other services, truly realizing the integrated service of comprehensive services. Telecom operators have been set up in Hong Kong and the United States to actively carry out local business.

After nearly ten years of large-scale construction, especially in the past five years, the company has achieved nationwide coverage of various communication networks, and has the network ability to compete with other operating companies, which has promoted the company's comprehensive business advantages and market share to steadily improve, and played a positive role in forming an effective competition pattern in the telecommunications market and improving service levels. From 1998 to 2003, the company's revenue share in the domestic telecom market increased from 1. 1% to 14.5%. The company's mobile phone users grew rapidly, from 1.42 billion at the end of 1998 to 1 billion at the beginning of May 2004, and the market share of users expanded to nearly 35%.

Innovating mechanism and enhancing vitality

"Once the capital bottleneck is broken, mechanism innovation will become inevitable," said Wang Jianzhou, chairman and president of China Unicom.

While reshaping the governance structure, China Unicom deepened the reform of the three systems of "employment, employment and allocation", established an internal employment mechanism and income distribution system of "cadres can be promoted and demoted, employees can enter and leave, and income can be increased and decreased", and the company vigorously promoted the modern management of enterprises.

Over the past few years, China Unicom has adhered to the principle of meritocracy, attached great importance to talent work, and promoted the company's development with talent as the leading factor. In the employment mechanism, we should actively implement the appointment system, tenure system and pre-appointment publicity system for cadres, closely combine the annual performance appraisal of cadres with their posts, and adjust middle-level cadres on a large scale through open recruitment and competition for posts. In terms of talent introduction, since 2000, the company has put out 27 senior management positions for open recruitment at home and abroad for three consecutive years, and nearly 4,000 people have signed up for the job, which has aroused great repercussions in the society. The recruited personnel have served as general manager and deputy general manager in various departments of the company headquarters and provincial branches respectively. In 2003, the State-owned Assets Supervision and Administration Commission (SASAC) publicly recruited two vice presidents of China Unicom for the whole world, which made the company take a bigger step in openly recruiting senior managers. In addition, the company has also established the first postdoctoral research center for telecom operators in China, and established Unicom College to vigorously cultivate all kinds of urgently needed talents. At present, among the more than 40,000 employees of Unicom, the proportion of employees with college education or above is 77%, the proportion of employees with senior titles is 2 1%, and the proportion of senior managers with master's and doctoral degrees is 28%.

At the same time, China Unicom fully implemented the labor contract system and actively and steadily carried out the socialization reform of labor and employment. We will comprehensively establish a salary system that is linked to salary and contribution, and the income can be increased or decreased, so that the treatment of employees is closely linked to performance. Grant stock options to senior managers and technical business backbones to stimulate their enthusiasm and creativity. The reform of personnel distribution system has created a positive and outstanding atmosphere within Unicom.

With the help of internationally renowned management consulting companies, absorbing the management experience of international advanced enterprises, combining with the company's reality, innovating the company's organizational structure, and adjusting and optimizing the internal organizational settings of the headquarters and more than 300 branches according to the principle of combining business divisions with service units. The company carries out international quality system certification. Draw lessons from international experience and establish a relatively perfect performance appraisal method. Strengthen the construction of internal control system, implement comprehensive budget management, and implement unified planning and centralized control of capital expenditure. Strengthen financial management, strictly control capital expenditure, project cost and labor cost, and improve the return on investment and capital utilization rate. Strict audit control is implemented, and internal audit and international consulting company audit are carried out simultaneously.

Dual innovation of technology and commerce

Technology and business innovation are the source of continuous development of communication operation enterprises. In the past ten years, China Unicom has attached great importance to the development of communication technology from a strategic perspective, constantly adopted advanced technology, carried out technological innovation and business, strived to improve productivity and developed various marketable telecom services.

When analog technology prevailed, China Unicom, which was just established, took the lead in adopting the advanced GSM digital cellular technology to build a mobile communication network. In the aspect of CDMA construction, according to the habits of domestic users, the CDMA machine-card separation technology was created. In order to coordinate the development of GSM and CDMA networks, China Unicom took the lead in the GSM 1X technology test and successfully developed the "G &；; C mobile dual-mode system ". This "dual-mode system" was fully completed in the first half of this year, and it was fully introduced to the market with the brand of "world wind". After the system is completed, it has three functions: first, it enables GSM users to enjoy the high-speed data service of CDMA 1X; Second, the global roaming of CDMA users has been realized; Third, it makes up for the insufficient coverage of G network and C network. This will greatly facilitate the vast number of mobile users, especially the current dual-card users, and bring them a brand-new mobile communication experience.

Through cooperation with SP/CP, SUN and other SP/CP companies, China Unicom has developed colorful and deeply loved value-added services with advanced technology and "Unicom Unlimited" as its general brand. Similar WAP2.0 services, streaming media services and other value-added services will also be introduced to the market soon.

On the unified network platform, China Unicom adopted ATM+IP technology and established a unified multi-service network platform (China Uninet). At the technical appraisal meeting of the network platform project hosted by Academician Zhu, the appraisal committee agreed that China Unicom Internet has taken a new technological development route for the transition to the next generation network, which has the international leading level. Based on this network, IP telephone, online communication and other services are warmly welcomed by users as soon as they are launched into the market.

In terms of video network, China Unicom adopted the world-advanced H.323 technology, established the world's largest video network system, and launched the "video protection service" with Unicom characteristics. This system played an important role in the fight against SARS last year.

Over the years, technological innovation has not only improved the communication ability and productivity of China Unicom, but also greatly enhanced the technological leading edge and competitive advantage of China Unicom, and greatly enhanced the core competitiveness of China Unicom in the market.

Corporate culture has its own characteristics.

In the past ten years, China Unicom has actively created a good corporate culture atmosphere and gradually formed a corporate culture with "competition, innovation, passion and integrity" as its core values.

Competition is inherent in Unicom. Faced with the difficult entrepreneurial environment and fierce market competition, the company gives full play to the role of Party organizations and trade unions at all levels, the Communist Youth League organizations such as * * * and party member's vanguard and exemplary role. By establishing and improving the democratic life meeting system of party organizations at all levels, the company has carried out spiritual civilization creation activities such as "Youth Civilization", "Care for users, Service Excellence" and labor competition. All employees of the company carry forward the spirit of hard struggle, fully participate in market competition with "winning ambition, vigorous vigor, pioneering spirit and high fighting spirit", strive to catch up, and form a positive, United and enterprising enterprise face.

(C) Opportunities and challenges coexist

Of course, as a new developing operator, today's China Unicom is still far from the goal of building a "evenly matched and unique" market competition subject, and there is still a big gap compared with international first-class telecom operators.

According to reports, from the perspective of China Unicom, first, it is still in the stage of high investment and high growth, and its profit rate is not high, so it is necessary to work hard to improve the efficiency level; Second, the basic management of enterprises needs to be continuously strengthened, and there are problems and deficiencies in network optimization, operation and maintenance to varying degrees; Third, the quality of employees needs to be further improved. In order to adapt to the market competition under the new situation, we must speed up the construction of a talent team that understands technology, business, operation and management. Fourth, the company's ability to resist risks is still relatively weak, and the company's core competitiveness needs to be further improved.

From the outside of the company, it faces many challenges from the external environment: First, as a new telecom operator, China Unicom is far from the original monopoly in terms of competitive strength and market share, and a fair and effective competition pattern in the telecom market has not yet formed. Secondly, irregular competition and even vicious competition frequently occur in the telecom market, which hinders the normal development of emerging operators such as China Unicom. Moreover, the inter-network settlement policy is a heavy burden for China Unicom. Especially since the fixed-line operators developed PHS services, the inter-network settlement method has more and more influence on mobile operators, especially emerging mobile operators like China Unicom. In addition, interconnection is still one of the important issues that restrict the development of the company and affect the fair competition in the telecommunications industry.

Ten years' struggle has laid a solid foundation for the further development of China Unicom. Faced with difficulties, Unicom people are full of confidence and determination to win. At present, under the guidance of Scientific Outlook on Development, China Unicom adheres to people-oriented, all-round, coordinated and sustainable development, carries forward Unicom's unique corporate culture of "competition, innovation, passion and integrity", develops and innovates, and works hard to establish the strategic goal of striving to enter the world's top 500 around 2005, and strives to become "evenly matched" as proposed by the State Council at an early date.

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