China Telecommunications Corporation (China Telecom) is an extra-large State-owned telecom operator in China, and was selected into the Top 500 Global Corporations for many years. China Telecom mainly provides the integrated information services including the fixed-line telephone, mobile service, Internet connection and applications services. By the end of 2008, China Telecom owns 214 million fixed line telephone subscribers, 35.44 million mobile subscribers, and 47.18 million broadband customers. The total asset of China Telecom is 632.2 billion yuan, and the yearly turnover revenue is more than 220 billion yuan. There are 670 thousand employees in total in China Telecom. China Telecom was ratified as the Class-A Enterprise for four consecutive years since 2004. China Telecom was rated respectively as the ¡°World Most Admired Enterprise ¡±,¡°Best Fixed-Line Telephone Company in Asia¡±,¡°Best Telecom Company in China¡±by the magazines of¡°Fortune¡±, ¡°Asia Finance¡±,¡°EUROMONEY¡±and¡°Capital Magazine¡±, etc. Also, China Telecom was awarded with the titles of the ¡°Best Managed Company¡±, ¡°Best Enterprise Governance¡±,¡°Best Dividends Promise-Keeping Company¡±,¡°Best Institutional Investor Relations Awards¡±and¡°Most Trusted Strategy in the Company¡±.

China Telecom has subsidiary companies in 31 provincial (municipal and autonomous regions) and branches in the Americas, Europe, Hong Kong and Marco, covering the whole country of China and reaching every corner of the world. China Telecom is capable of providing all telecom services and multiple convergent services and sales channels, with the network reaching every corner of the world and many branded products such as ¡°BizNavigator¡±, ¡°My e Home¡±,¡°Tianyi¡±,¡°Best Tone¡±and¡°ChinaVNET¡±, etc. China Telecom has two holding companies,¡°China Telecom Corporation Limited¡±and¡°China Communications Services Corporation Limited¡±. Both of them were listed on the Hong Kong Stock Exchanges, New York Stock Exchanges in 2002 and in Hong Kong Stock Exchanges in 2006 respectively. Therefore, the operation structure of main business and sideline business came into being with both companies listed on the public stock market.

In the last few years, China Telecom met a lot of difficulties and challenges, such as the fast decline of the fixed line telephone business, a large quantity of the bad debts inherited from the several telecom enterprise restructurings, and heavy tasks for the reform and development. Based on the actual facts in the company and the characteristics of the resources, China Telecom took the Scientific Outlook on Development as the guidance and direction, and made the strategic decision for transformation in 2004 ahead of the others in the industry in pushing forward the company to transform from the traditional basic telecom operator to an integrated information services provider. With that in mind, China Telecom is developing in a steady and healthy manner under the circumstance of the negative increase in the fixed-line telephone business around the globe, by implementing the creative strategy of focusing on the customers and developing the integrated information services such as the non-voice service, also by intensifying the precise management and optimal resource allocations. Between 2004 and 2008, the compound increase rate of the main business reached 6% as a whole group, with the net revenue reaching 3.4%, and the non-voice services weight was increased from 22% to 45%.

While exploring the value increase of the enterprise, China Telecom conscientiously implement its responsibility as an enterprise by upholding the concept of co-existence and harmonious unity between the corporate development and social development, between the environment protection and the relevant parties who have interests with us. China Telecom provided in total 72.5 billion yuan as the tax since 2004, and provided almost 100 thousands working opportunities for the public by outsourcing the services. China Telecom is active in the participation of the public welfare, assistance to the poor in the Tibet region, and also takes action to reduce the energy and the consumptions. China Telecom successfully completed the guaranteed telecommunications services for the Beijing Olympic Games. When the huge earthquake and heavy snow disaster occurred in 2008, China Telecom reacted quickly and immediately organized all the resources from the whole group for the rescue and relief operations in order to restore the telecommunications as quickly as possible. All these efforts made it possible for the smooth communications for the commandeering posts for the relief and rescue operation, for the Party and the governments, financial institutions, power supply companies, etc.. China Telecom provided the free phone calls and the hotline services to the people affected by the disasters, and also provided the assistance to the other operators for the restoring work, showing great sense of the social responsibilities.

As the main force of the informatization construction in the country, China Telecom focuses on the R&D and promotes the informatization applications in order to bring the benefits of the informatization to all the cycles of the industry and the public as well. China Telecom provided specific informatization solutions to more than 20 industries and the large number of the enterprises. The service areas covers from the basic telecom services to the system integration, network security, video conference, video monitoring, data center housing, call centre, network maintenance outsourcing, network management, emergency duplication, integrated information consultations, etc. China Telecom meets its obligation for the universal service in serving the¡°New Three Fs Policy¡±(meaning concerns for the village, peasants, agriculture), constructing the projects in order to have the¡°telephone installed in every village¡±and the model projects of the informatization in all villages and townships, carrying out the ¡°Promoting Home Appliances in the Rural Areas¡±. China Telecom has provided the public with the integrated information services related with the food, clothing, housing, transport, and necessities, etc., and made proper contributions in providing the information life to the public by driving up the convergence of the informatization and industrialization, rural informatization construction so as to narrow the digital gaps.
 
As the country implemented the new telecom restructuring in 2008 and issued the licenses for 3G mobile communications in 2009£¬China Telecom is facing the new opportunity and challenges for all-service and the 3G development. Therefore£¬China Telecom will further study and implement the Scientific Outlook on the Development£¬deepen its strategy of focusing on the customers£¬insist on the service concept of ¡°Customer First, Service Foremost¡±£¬pursue the operation idea of the ¡°exploring the enterprise value and the customer value at the same time¡±in order that we could realize the quicker and better development£¬become the best enterprise citizen and also make more and more contributions to the national economic development and social informatization construction.