China Telecom is an extra-large state-owned enterprise organized according to the state telecom system reform plan. As a national main-body telecom enterprise and China's largest basic telecom network operator, China Telecom owns the world's largest fixed- line telephone network that covers the whole country of China and its services can reach each corner of the globe. With its member units in 31 provincial (provincial, municipal and autonomous regional) regions, China Telecom operates telecom services nationwide.

China Telecom is controlled by the central government of China and is an experimental state holding corporation of that the investing channels are subject to approval by the State Council, and its registered capital is 158 billion yuan. Currently, China Telecom is mainly operating: various kinds of domestic and international fixed- line network infrastructures, including local wireless loops; voice, data, image, multimedia and information services relying on the said networks; conducting accounts settlement that is relating to international telecom services and exploring overseas telecom market. China Telecom is also operating the following which are relating to telecom and information services: system integration; technological R&D; technical service/advice; information consultation; advertising and publishing; equipment production, sales, import and export; project design and implementation. China Telecom can operate other services required by the market but the operation is subject to approval or permission by the state.

In 2002, China Telecom accomplished the restructuring of the telecom business assets and the telecom system reform of its Shanghai, Jiangsu, Zhejiang and Guangdong Corporations and on 10 September 2002 established China Telecom Corporation Limited. On 14 and 15 November 2002, the corporation successfully completed its initial public offering (IPO) at New York and Hong Kong stock exchanges and this indicates that China Telecom has entered a new period of healthy development. In December 2003 and June 2004, China Telecom Corporation Limited acquired the telecom assets in Anhui and other five provincial corporations of China Telecom. Since the acquisition, the services of China Telecom Corporation Limited have covered 20 provincial regions and China Telecom has entered a new era of healthy development.

In 2002 when it was inaugurated, China Telecom was selected by the Fortune as one of the "World's Most Admired Companies" and in 2003 was so selected again. Among the 345 selected enterprises of the world, its rank got higher most greatly, ranking 9th, it is really an outstanding success. According to the 2003 evaluation done by the "telecomasia", an authoritative specialized magazine, China Telecom was granted with the honourable title "Best Emerging Market Carrier"by scores of an overwhelming superiority. While China Telecommunications Corporation Limited was granted by the IR magazine with its 2003 "Institutional Investor IR Awards" . In the evaluations done by the Forbs, Business Weak and Financial Times as well as the "Top 500 Companies of China's Enterprises" in 2004, China Telecom also ranked forefront.