China Unicom Presented By Kirk Topits Director AsiaPac Strategic Projects

Who is China Unicom? About China Unicom China Unicom was established in July 1994 and listed on the Hong Kong and New York stock markets in June China Unicom is China's second largest mobile communication operator with over 70 million mobile subscribers for its CDMA and GSM networks. Presently it has over 300 branches and subsidiaries in the country's 30 provinces, autonomous regions and municipalities directly under the central government. China Unicom is now the only fully licensed service provider in the country, providing a full range of telecom services such as domestic and international long-distance call service, mobile phone and data/IP network communications. The Company has completed the construction of the second largest broadband optical fibre transmission network in China, which serves as the common platform supporting the various networks of cellular communications, domestic and international long distance, data, Internet and paging services. For more details regarding China Unicom Ltd., please visit our website:

China Unicom wants to leverage its nation-wide fiber optic network by launching the world’s largest video conferencing network. What do they want?

China Unicom Networks (Simplified!) ATM/FR Fiberoptic BACKBONE ATM/FR Fiberoptic BACKBONE “193” ISDN Network Local PSTN “Last Mile” Local PSTN “Last Mile” GSM / CDMA “13x” Network IP Backbone Network (Cisco/AsiaInfo) IP Backbone Network (Cisco/AsiaInfo) “165” Internet VPN National “100” Video VPN Custome r / VPN Province Video VPN Province Video VPN Province Video VPN Custome r / VPN Custome r / VPN International Partner “0xx” Video VPNs

Required Components MCU’s - standards based, Carrier Grade, DC Power Full Audio and Video Transcoding, CP with Lecture Mode Audio/Video Error correction and concealment Gatekeepers (Multi-Hierarchy with PSTN style dialing using E.164) Virtual MCU Servers (with automatic cascading) Customer Interface Portal Real-time Conference CDR/Billing/Banking Servers Operator Assisted AND Self-serve conferencing Web based Conference Control/Scheduling Integrated in HP Openview with SNMP - Component Level End Points AND support for ALL China Endpoints Industry Leader - On Standards Committee - Service Providers

Overall Design Objectives Firewall / Proxy between VPN’s and Networks Gateway Access to other Networks Any device To Any device Connectivity Unified Dialplan and directory Common Portal for all scheduling and control Real-time Authorization Common Billing / Details High Availability 99.99%

The Project

Challenges to Polycom All software developed by Chinese system integrator It’s ALL Chinese Language - No English China Based Competition (favored) System must be REAL at Demonstration 100% “IP” mentality Heavy usage by Unicom upper management Designed for Enterprise Video VPN Services Largest VIDEO IP network in the world! Over 30 Data Centers throughout all of China

Time Line Q1/2001 Start Phase 1 (Polycom purchases Accord Networks) Q2/2001 Discussions and Design Q3/2001 RFP and demonstrations –Created Polycom Project Team Q4/2001 Evaluation and Project Award Q1/2002 Equipment Build, Test, Ship, Install Q2/2002 Network Install, Integration Test Q3/2002 Cross Functional team for certification testing Q3/2002 Launch for Internal Usage Q4/2002 Phase 1.5 started – Unified Service Q1/2003 Customers On-Line with “UniVideo” Service Q2/2003 Accelerated Sign-up (SARS hits China!) Q3/2003 Phase 2 started – 60% expansion

Physical Demonstration Layout Polycom/Atlanta Unicom/Beijing Lab/Beijing ISDN Network Public Internet Polycom/HongKong Polycom/London Polycom/Atlanta ADSL

The Final Demonstration Results… CHINA UNICOM SELECTS POLYCOM AS A MAJOR SYSTEMS PROVIDER OF BUSINESS VIDEO COMMUNICATIONS SYSTEMS FOR THE WORLD’S LARGEST IP VIDEO COMMUNICATIONS NETWORK China Unicom selects Polycom’s MGC-100, PathNavigator and ViewStation to bring business quality video communication services to the People’s Republic of China. HONG KONG and MILPITAS, Calif., Feb. 28, 2002 – China Unicom (HKSE: 0762; NYSE: CHU) and Polycom ®, Inc. (NASDAQ: PLCM), today announced that China Unicom has selected Polycom as one of its major system providers for the world’s largest Internet Protocol (IP) video communications network. According to the contract, China Unicom is purchasing US$(multi) million worth of video communications systems from Polycom beginning in the fourth quarter of 2001 and continuing during the first quarter of 2002, in addition to the contractual purchase of other equipment and software, resulting in the world’s largest IP video communications network covering over 300 cities in China including Hong Kong. Through the cooperation with operators outside China, China Unicom will extend its business to other countries.

The Deliverables (Phase I) Polycom –34 MGC’s in 30 Provinces –8 PathNavigators (1 master and 7 regional) –GK Support 20,000 registered / 2,000 on-line endpoints –800 Polycom Endpoints (Equipment) –Installation China System Integrator –Network Design –Internet Portal interface for customers –Directory Services –Integrated accounting, billing, banking –Complete network management package (HP Openview) –Virtual MCU –Interoperability Lab

The Design

Video Conference Backbone MCU组网示意图

Applications Created Account management End-Point Registration Scheduling Virtual MCU (cascading, failover) Conference Control Operator Services “CDR” Collection and Conversion Billing WEB Portal Time Synchronization HP Openview Traps/Alarms HP Openview Analysis

Management Architecture HP Openview SNMP Server MCUs Banking Credit Card System WEB Portal Server User Interface, Registration PathNavigators SNMP Scheduling Server Virtual MCU C/C++ API CDR Collection Servers C/C++ API Provinces Primary Data Center PN API Master PathNav Database Server C/C++ API WEB Portal Conference Control Server

(WEB Site Home Page) Login Forgot Password UserName Password Video Conference Operation Center Registration Center (Operator Assisted) Conference Reservations (Login Required) Conference Control (Login Required)

CreateConference AccountInquiry (Logged In User - Main Menu) Video Conference Operation Center ConferenceControl ContactUs Logout

Conf Name Password Password Confirm Conference Meeting Room Available Endpoints Selected Endpoints Chair Site Participant Site Video Conference Operation Center Contact Us Logout Conf Control Account (New Conference)

NameRequestor Master Site Start Time End Time Extended Available EP Dial In/Out Add EP Terminate Lock Delete Party Status/Reconnect Dial In/Out Audio Mute Speaker Name Refresh Currrent Time Video Conference Management System (Conference Control) New Conf Account Contact Us Logout

Conclusion…

34 on-line MGC’s!

The Polycom MGC has been declared as THE standard for IP Conferencing. H.323 compliance is defined as compliance with the Polycom MGC-100. Over 6,000 registered endpoints. Target 10, conferences/day, 150 / week, 1.5M minutes/month Average duration 3-4 hours Over 20M minutes since launch

Phase II is Starting Additional MGC Additional PathNavigators Additional Capacity to existing MGC Futures? Target to Provide EndPoints Residential/SOHO EndPoints and 3G