China Telecommunications Corporation

{{Short description|State-owned long-distance data transmission company}}{{About|text=For the publicly traded subsidiary, see China Telecom Corporation Limited}}{{Use dmy dates|date=July 2014}}

{{Infobox company

| name = China Telecommunications Corporation

| trade_name = China Telecom

| traded_as =

| former_name = Directorate General of Telecommunications

| native_name = 中国电信集团有限公司

| logo = China Telecom Logo.svg

| caption =

| type = State-owned enterprise

| foundation = {{start date and age|1995|4|27|df=y}}

| founder = Ministry of Posts and Telecommunications

| location = Beijing, China
Shanghai, China

| area_served = China, Philippines

| industry = Holding company

| owner = Chinese Government (100%)

| subsid = {{ubl|Besttone Holding|{{nowrap|China Communications Services}}|China Telecom|Dito Telecommunity (40%)}}

| revenue = US$ 87.9 billion (2023){{cite web |title=China Telecommunications |url=https://fortune.com/company/china-telecommunications/ |website=Fortune GLobal 500 |publisher=Fortune |access-date=2024-08-24 |archive-date=24 August 2024 |archive-url=https://web.archive.org/web/20240824205709/https://fortune.com/company/china-telecommunications/ |url-status=live }}

| operating_income =

| net_income = US$ 2.2 billion (2023)

| assets = US$ 151.9 billion (2023)

| num_employees = 391,691 (2023)

}}

China Telecommunications Corporation ({{zh|s=中国电信集团有限公司|labels=no}}), known as its trading name China Telecom, is a Chinese state-owned telecommunication company. It is the largest fixed-line service and the third largest mobile telecommunication provider in China.

The corporation has three listed companies: China Telecom Corporation Limited ({{zh|s=中国电信股份有限公司|labels=no}}), China Communications Services Corporation Limited ({{zh|s=中国通信服务股份有限公司|labels=no}}), and Besttone Holding Co., Ltd. ({{zh|s=号百控股股份有限公司|labels=no}}).

History

The company originated as a government agency of the {{ill|Ministry of Posts and Telecommunications (China)|zh|中华人民共和国邮电部|lt=Ministry of Posts and Telecommunications}}. On 27 April 1995, it was registered as a separate legal entity as Directorate General of Telecommunications, P&T, China, using "China Telecom" as brand name.{{cite press release|url=http://www.fsaic.gov.cn/xxgk/fgwj/200905/W020090521628973123021.doc|title=邮电部关于电信总局对内对外称谓及"中国电信"企业标识使用有关问题的通知|date=1 November 1995|access-date=26 July 2017|publisher=Ministry of Posts and Telecommunications (China)|language=zh|archive-url=https://web.archive.org/web/20171110115145/http://www.fsaic.gov.cn/xxgk/fgwj/200905/W020090521628973123021.doc|archive-date=10 November 2017|url-status=dead}} On 17 May 2000 it was registered as China Telecommunications Corporation. In May 2002, China Netcom Corporation was spun off as a separate company that was also supervised by the State-owned Assets Supervision and Administration Commission of the State Council directly. It also owned subsidiaries in Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Henan and Shandong that formerly belonged to China Telecommunications Corporation.{{cite web|url=http://www.chinabond.com.cn/resource/1472/1488/1505/18682/21000/18612/21490/290684/291174/10499964/1298944108024650789738.pdf|title=2007–2009 Three Year Financial Report|date=1 March 2011|access-date=26 July 2017|publisher=China Telecommunications Corporation|language=zh|archive-date=10 November 2017|archive-url=https://web.archive.org/web/20171110171416/http://www.chinabond.com.cn/resource/1472/1488/1505/18682/21000/18612/21490/290684/291174/10499964/1298944108024650789738.pdf|url-status=live}} According to the United States Department of Defense, the company has links to the People's Liberation Army.{{Cite news|last=Allen-Ebrahimian|first=Bethany|date=June 24, 2020|title=Defense Department produces list of Chinese military-linked companies|work=Axios|url=https://www.axios.com/defense-department-chinese-military-linked-companies-856b9315-48d2-4aec-b932-97b8f29a4d40.html|access-date=June 24, 2020|archive-date=25 June 2020|archive-url=https://web.archive.org/web/20200625134940/https://www.axios.com/defense-department-chinese-military-linked-companies-856b9315-48d2-4aec-b932-97b8f29a4d40.html|url-status=live}}

On 10 September 2002, a subsidiary, China Telecom, was listed.{{cite web|url=http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0406/LTN20170406631.pdf|title=2016 Annual Report|date=6 April 2017|access-date=26 July 2017|publisher=China Telecom|archive-date=10 November 2017|archive-url=https://web.archive.org/web/20171110115007/http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0406/LTN20170406631.pdf|url-status=live}}{{cite web|url=https://www.hkex.com.hk/eng/stat/smstat/chidimen/cd_hmb.htm|title=List of H Share Companies (Main Board)|date=30 June 2017|access-date=26 July 2017|publisher=Hong Kong Stock Exchange|archive-date=8 July 2017|archive-url=https://web.archive.org/web/20170708125126/https://www.hkex.com.hk/eng/stat/smstat/chidimen/cd_hmb.htm|url-status=live}} The listed company gradually acquired the assets from China Telecommunications Corporation. {{as of|2016|12|31}}, however, China Telecommunications Corporation still owned the controlling stake in the company, for 70.89%.

In 2009 China Telecommunications Corporation received some of the assets of China Satellite Communications.{{cite news|url=http://www.chinadaily.com.cn/china/2008-05/25/content_6709799.htm|title=Industry shakeup creates 3 telecom giants|date=25 May 2008|access-date=25 July 2017|newspaper=China Daily|archive-date=10 November 2017|archive-url=https://web.archive.org/web/20171110115036/http://www.chinadaily.com.cn/china/2008-05/25/content_6709799.htm|url-status=live}}{{cite news|url=http://www.chinadaily.com.cn/china/2009-04/10/content_7667601.htm|title=China Satcom taken over amid telecom reshuffle|date=10 April 2009|access-date=25 July 2017|newspaper=China Daily|archive-date=20 August 2017|archive-url=https://web.archive.org/web/20170820115014/http://www.chinadaily.com.cn/china/2009-04/10/content_7667601.htm|url-status=live}}

The company provides fixed-line and Xiaolingtong (Personal Handy-phone System) telephone services to 216 million people as of April 2008,[https://web.archive.org/web/20060115045705/http://www.chinatelecom-h.com/eng/ir/kpi.htm China Telecom Key Performance Indicators]{{failed verification|date=July 2017}} and broadband internet access to over 38 million subscribers, providing approximately 62% (46 Gbit/s) of China's internet bandwidth.{{cite web |url = http://www.opennetinitiative.net/studies/china/#toc2 |title = Internet Filtering in China in 2004–2005: A Country Study |publisher = Opennetinitiative.net |access-date = 18 November 2010 |archive-url = https://web.archive.org/web/20070928135524/http://www.opennetinitiative.net/studies/china/#toc2 |archive-date = 28 September 2007 |url-status = dead }} On 2 June 2008, China Telecommunications Corporation announced{{citation needed|date=July 2017}} that it would purchase China Unicom's nationwide CDMA business and assets for {{CNY|link=yes|110 billion}}, giving it 43 million mobile subscribers. According to the company, the listed portion of China Telecom Group (China Telecom Corp., Ltd.) paid {{CNY|43.8 billion}}, the unlisted portion of China Telecom Group (China Telecommunications Corporation) paid {{CNY|66.2 billion}}.

On 7 January 2009, China Telecommunications Corporation was awarded CDMA 2000 license to expand its business to 3G telecommunication.{{cite news|url=http://www.chinadaily.com.cn/business/2009-01/08/content_7376941.htm|title=China issues 3G licenses|date=8 January 2009|access-date=28 September 2018|newspaper=China Daily|author=Wang Xing|archive-date=28 September 2018|archive-url=https://web.archive.org/web/20180928121454/http://www.chinadaily.com.cn/business/2009-01/08/content_7376941.htm|url-status=live}}

= U.S. sanctions=

{{Further|United States sanctions against China}}

In November 2020, U.S. President Donald Trump issued an executive order prohibiting U.S. companies and individuals from owning shares in companies that the United States Department of Defense has listed as having links to the People's Liberation Army, which included China Telecom.{{Cite news |last=Mozur |first=Paul |date=2021-01-01 |title=New York to Delist Chinese Telecom Firms in Symbolic Shift |language=en-US |work=The New York Times |url=https://www.nytimes.com/2021/01/01/business/nyse-delist-china-mobile.html |access-date=2021-01-01 |issn=0362-4331 |archive-date=1 January 2021 |archive-url=https://web.archive.org/web/20210101075008/https://www.nytimes.com/2021/01/01/business/nyse-delist-china-mobile.html |url-status=live }} In consequence of the executive order, the New York Stock Exchange delisted China Telecom in January 2021.

In December 2020, the United States Federal Communications Commission (FCC) initiated proceedings to revoke China Telecom's authorization to operate in the U.S. due to national security concerns.{{Cite news |last=Shepardson |first=David |date=2020-12-11 |title=FCC begins process of halting China Telecom U.S. operations |language=en |work=Reuters |url=https://www.reuters.com/article/usa-china-tech-idUSKBN28K2ER |access-date=2020-12-11 |archive-date=20 August 2023 |archive-url=https://web.archive.org/web/20230820030046/https://www.reuters.com/article/usa-china-tech-idUSKBN28K2ER |url-status=live }} In October 2021, the FCC revoked China Telecom's operating license in the U.S.{{Cite news |last=Shepardson |first=David |date=2021-10-27 |title=FCC revokes authorization of China Telecom's U.S. unit |language=en |work=Reuters |url=https://www.reuters.com/business/media-telecom/fcc-votes-terminate-china-telecom-americans-authority-provide-us-services-2021-10-26/ |access-date=2021-10-28 |archive-date=20 August 2023 |archive-url=https://web.archive.org/web/20230820024545/https://www.reuters.com/business/media-telecom/fcc-votes-terminate-china-telecom-americans-authority-provide-us-services-2021-10-26/ |url-status=live }} In March 2022, the FCC designated a U.S. subsidiary of the company, China Telecom (Americas) Corp, a national security threat.{{Cite news |last1=Shepardson |first1=David |last2=Satter |first2=Raphael |date=2022-03-26 |title=U.S. FCC adds Russia's Kaspersky, China telecom firms to national security threat list |language=en |work=Reuters |url=https://www.reuters.com/business/media-telecom/us-fcc-adds-ao-kaspersky-lab-china-telecom-firms-national-security-threat-list-2022-03-25/ |access-date=2022-03-26 |archive-date=8 November 2023 |archive-url=https://web.archive.org/web/20231108100721/https://www.reuters.com/business/media-telecom/us-fcc-adds-ao-kaspersky-lab-china-telecom-firms-national-security-threat-list-2022-03-25/ |url-status=live }} In December 2024, the United States Department of Commerce moved to crack down on China Telecom's cloud and internet routing business in the U.S.{{Cite news |last=Shepardson |first=David |last2=Alper |first2=Alexandra |date=December 16, 2024 |title=Washington moves to boost crackdown on China Telecom's US unit, source says |url=https://www.reuters.com/business/media-telecom/us-moves-boost-crackdown-china-telecoms-us-unit-source-says-2024-12-17/ |access-date=December 16, 2024 |work=Reuters}}

Consolidation and expansion

On 2 June 2008, the company announced it would acquire China Unicom's CDMA business and network for {{CNY|110 billion}} in cash, a series of transactions aimed at transforming the company into a fully integrated telecommunications operator.{{cite news |url = https://www.forbes.com/afxnewslimited/feeds/afx/2008/06/02/afx5069042.html

|title = ROUNDUP China Unicom acquires Netcom, sells CDMA assets as telco reorg takes off

|access-date = 10 June 2008 |work = Forbes |date =2 June 2008 |archive-url = https://web.archive.org/web/20110604010459/http://www.forbes.com/feeds/afx/2008/06/02/afx5069042.html |archive-date=4 June 2011 }}

Such shifts mark a new era for the telecommunications industry in China in which analyst have further commented that these changes are aimed at promoting a more fair and competitive industry environment.{{cite news |url = https://www.usatoday.com/money/industries/telecom/2008-05-26-china-telecom_N.htm |title = China orders sweeping telecom merger |access-date = 10 June 2008 |publisher = USA TODAY |date = 26 May 2008 |archive-date = 30 May 2008 |archive-url = https://web.archive.org/web/20080530021522/http://www.usatoday.com/money/industries/telecom/2008-05-26-china-telecom_N.htm |url-status = live }}

China Telecom was chosen by the Chinese Government as an investor in the Philippines for providing telecom services.{{cite news|url=https://www.rappler.com/business/190950-china-telecom-selected-invest-philippine-3rd-telco|title=China Telecom to help establish 3rd PH telco player – Andanar|date=10 December 2017|access-date=28 September 2018|work=Rappler|location=Manila|archive-date=28 September 2018|archive-url=https://web.archive.org/web/20180928121449/https://www.rappler.com/business/190950-china-telecom-selected-invest-philippine-3rd-telco|url-status=live}}{{cite news|url=https://www.scmp.com/business/article/2123794/china-telecom-picked-become-philippines-third-telecoms-player|title=China Telecom picked to become the Philippines' third telecoms player|date=11 December 2017|access-date=28 September 2018|newspaper=South China Morning Post|location=Hong Kong|agency=Reuters|archive-date=28 September 2018|archive-url=https://web.archive.org/web/20180928121428/https://www.scmp.com/business/article/2123794/china-telecom-picked-become-philippines-third-telecoms-player|url-status=live}} They were later chosen as 'provisional' telecommunications provider of the country after a bidding led by the Philippine government on November 7, 2018. As current laws restrict foreign ownership to 40%, China Telecom (through its parent company){{cite web |title=Mislatel, now Dito Telecommunity, gets permit to operate as 3rd telco |url=https://cnnphilippines.com/business/2019/7/8/Mislatel-Dito-Telecommunity.html |website=CNN Philippines |access-date=9 July 2019 |date=8 July 2019 |archive-date=11 April 2021 |archive-url=https://web.archive.org/web/20210411154723/https://www.cnnphilippines.com/business/2019/7/8/Mislatel-Dito-Telecommunity.html |url-status=dead }}{{cite web |last1=Balinbin |first1=Arjay L. |title=Mislatel to rebrand as 'Dito Telecommunity' after getting license |url=https://www.bworldonline.com/mislatel-to-rebrand-as-dito-telecommunity-after-getting-license/ |publisher=BusinessWorld |access-date=9 July 2019 |date=8 July 2019 |archive-date=16 January 2021 |archive-url=https://web.archive.org/web/20210116114212/https://www.bworldonline.com/mislatel-to-rebrand-as-dito-telecommunity-after-getting-license/ |url-status=live }}{{cite web |last1=Parrocha |first1=Azer |title=PRRD hands Mislatel Consortium permit to operate as 3rd telco |url=https://www.pna.gov.ph/articles/1074398 |work=Philippine News Agency |access-date=9 July 2019 |date=8 July 2019 |archive-date=8 July 2019 |archive-url=https://web.archive.org/web/20190708152418/https://www.pna.gov.ph/articles/1074398 |url-status=live }} forms a venture with local companies Udenna Corporation (owner of Phoenix Petroleum) and Chelsea Logistics under the franchise of Mindanao Islamic Telephone Company, Inc (or the Mislatel consortium). The selection was formalized on 20 November after the Philippine National Telecommunications Commission junked petitions from its rival bids.{{cite tweet|number=1064480636784660481|user=DICTgovph|title=OFFICIAL: NTC En Banc confirms Mislatel consortium as the country's New Telco Major Player READ full story here:… |date=19 November 2018}} On 8 July 2019, Mislatel was renamed to Dito Telecommunity and at the same time, was granted its permit to operate. The firm began its commercial operations on 8 March 2021.{{cite news |last1=Fenol |first1=Jessica |title=DITO now available in Visayas, Mindanao; will be in NCR 'in a few weeks' |url=https://news.abs-cbn.com/business/03/08/21/dennis-uy-leads-dito-commercial-debut-dito-telecommunity-now-available-in-visayas-mindanao |access-date=4 July 2021 |work=ABS-CBN News |date=8 March 2021 |language=en |archive-date=8 March 2021 |archive-url=https://web.archive.org/web/20210308062732/https://news.abs-cbn.com/business/03/08/21/dennis-uy-leads-dito-commercial-debut-dito-telecommunity-now-available-in-visayas-mindanao |url-status=live }}

= Subsidiaries =

{{updated|9 July 2019}}

  • Besttone Holding (58.45%, excluding shares held by China Telecom){{cite web|date=22 April 2017|title=2016 Annual Report|url=http://static.sse.com.cn/disclosure/listedinfo/announcement/c/2017-04-22/600640_2016_n.pdf|access-date=26 July 2017|publisher=Besttone Holding|page=35|language=zh|archive-date=14 December 2017|archive-url=https://web.archive.org/web/20171214125045/http://static.sse.com.cn/disclosure/listedinfo/announcement/c/2017-04-22/600640_2016_n.pdf|url-status=live}}
  • China Communications Services
  • China Telecom
  • Dito Telecommunity (40% stake)

Allegations of rerouted Internet traffic

On 8 April 2010, China Telecom rerouted about 15% of foreign Internet traffic through Chinese servers for 18 minutes.{{cite news |last=Crittenden |first=Michael R. |date=17 November 2010 |title=Chinese Firm 'Hijacked' U.S. Data in April |url=https://www.wsj.com/articles/SB10001424052748704648604575621071689674364 |url-status=live |archive-url=https://web.archive.org/web/20170629091917/https://www.wsj.com/articles/SB10001424052748704648604575621071689674364 |archive-date=29 June 2017 |access-date=3 August 2017 |newspaper=The Wall Street Journal}}{{Cite news |last=Shepardson |first=David |date=3 September 2024 |title=White House asks agencies to step up internet routing security efforts |url=https://www.reuters.com/world/us/white-house-asks-agencies-step-up-internet-routing-security-efforts-2024-09-03/ |access-date=4 September 2024 |work=Reuters}} The traffic included the commercial websites of Dell, IBM, Microsoft, and Yahoo! as well as U.S. government and military sites.{{cite web|title=Section 2: External Implications of China's Internet-related Activities|url=http://www.uscc.gov/annual_report/2010/Chapter5_Section_2%28page236%29.pdf|url-status=dead|archive-url=https://web.archive.org/web/20101202064913/http://www.uscc.gov/annual_report/2010/Chapter5_Section_2%28page236%29.pdf|archive-date=2 December 2010|work=USCC 2010 Annual Report|publisher=U.S.-China Economic and Security Review Commission|df=dmy}} China Telecom denied hijacking any Internet traffic.{{cite news |last=Young |first=Doug |date=17 November 2010 |title=China Telecom denies hijacking U.S. Web traffic |url=https://www.reuters.com/article/idUSTRE6AG1QY20101117 |url-status=live |archive-url=https://web.archive.org/web/20101223001825/http://www.reuters.com/article/idUSTRE6AG1QY20101117 |archive-date=23 December 2010 |access-date=30 June 2017 |newspaper=Reuters}}

See also

References

{{Reflist|2}}