Company Reports

China Telecom benefited from the 2008 Chinese telecom reorganization and has made the most of the changes. With the reorganization, the firm received 29 million wireless subscribers from China Unicom. Since then, it has increased its wireless base more than 15 times to 442 million as it leveraged its strong fixed-line franchise. This growth has enabled the business to become more profitable as the network’s fixed costs are spread over a much larger customer base.

China Telecom's second-quarter services revenue declined 2.4%, which, in combination with value-added tax, or VAT, increases, drove down EBITDA by 7.6% and net profit by 13.5%.

China Telecom's first-quarter services revenue declined 1.6%, which, in combination with value-added tax increases, drove down EBITDA by 7.8% and net profit by 17.1%.

China Telecom's fourth-quarter services revenue was flat, but increased expenses drove EBITDA down 5% and net profit down 35%.

China Telecom benefited from the 2008 Chinese telecom reorganization and has made the most of the changes. With the reorganization, the firm received 29 million wireless subscribers from China Unicom. Since then, it has increased its wireless base more than 14 times to 432 million as it leveraged its strong fixed-line franchise. This growth has enabled the business to become more profitable as the network’s fixed costs are spread over a much larger customer base.

China Telecom benefited from the 2008 Chinese telecom reorganization and has made the most of the changes. With the reorganization, the firm received 29 million wireless subscribers from China Unicom. Since then, it has increased its wireless base more than 14 times to 432 million as it leveraged its strong fixed-line franchise. This growth has enabled the business to become more profitable as the network’s fixed costs are spread over a much larger customer base.

The Chinese government has increased the value-added tax on mobile data, broadband, SMS, and MMS revenue of Chinese telecom services companies to 9% from 6%, effective Jan. 1, 2026.

China's Ministry of Industry and Information Technology reported 2025 telecom industry total revenue growth of 0.7%, a 3.1% decline in mobile data traffic services revenue, offset by a 5.9% rise in fixed internet broadband revenue, and 4.7% growth from emerging businesses such as cloud and Big Data.

China Telecom benefited from the 2008 Chinese telecom reorganization and has made the most of the changes. With the reorganization, the firm received 29 million wireless subscribers from China Unicom. Since then, it has increased its wireless base more than 14 times to 432 million as it leveraged its strong fixed-line franchise. This growth has enabled the business to become more profitable as the network’s fixed costs are spread over a much larger customer base.

China Telecom's third-quarter services revenue rose 0.4%, EBITDA was up 2.4%, and net profit increased 3.6% year on year. The revenue growth rate was slightly below the industry rate of 0.6%, but EBITDA growth was above the industry's 0.4% decline and net profit growth was above the industry's 2.2%.

China Telecom reported second-quarter services revenue that was up 2.1%, EBITDA up 4.7%, and net profit up 7.1% year on year. These growth rates were an improvement on the 0.3%, 4.7%, and 3.1% growth rates, respectively, in the first quarter.

China Telecom benefited from the 2008 Chinese telecom reorganization and has made the most of the changes. With the reorganization, the firm received 29 million wireless subscribers from China Unicom. Since then, it has increased its wireless base more than 14 times to 432 million as it leveraged its strong fixed-line franchise. This growth has enabled the business to become more profitable as the network’s fixed costs are spread over a much larger customer base.

China Telecom benefited from the 2008 Chinese telecom reorganization and has made the most of the changes. With the reorganization, the firm received 29 million wireless subscribers from China Unicom. Since then, it has increased its wireless base more than 14 times to 429 million as it leveraged its strong fixed-line franchise. This growth has enabled the business to become more profitable as the network’s fixed costs are spread over a much larger customer base.

China Telecom reported a slower first-quarter 2025 result with services revenue growing 0.3%, down from 3.4% growth in 2024. A strong cost focus allowed EBITDA to increase by 4.7% and net profit also rose 3.1%.

China Telecom benefited from the 2008 Chinese telecom reorganization and has made the most of the changes. With the reorganization, the firm received 29 million wireless subscribers from China Unicom. Since then, it has increased its wireless base more than 14 times to 425 million as it leveraged its strong fixed-line franchise. This growth has enabled the business to become more profitable as the network’s fixed costs are spread over a much larger customer base.

China Telecom reported a solid fourth-quarter 2024 result, with services revenue growing 3.4%, EBITDA down 4.4%, and net profit up 11%, all year on year. Like its peers, China Telecom guided for a capital expenditure decline in 2025—in its case, down 11% to CNY 83.6 billion.

The three main Chinese telecom companies, China Telecom, China Unicom, and China Mobile, are leveraging their strong positions in the cloud services market into providing artificial intelligence products and services, primarily targeted at government and corporates.

China Telecom reported a solid third-quarter result in trying economic circumstances, with services revenue growing 2.7%, EBITDA up 6.0%, and net profit up 7.8%, all year on year.

China Telecom benefited from the 2008 Chinese telecom reorganization and has made the most of the changes. With the reorganization, the firm received 29 million wireless subscribers from China Unicom. Since then, it has increased its wireless base more than 13 times to 408 million as it leveraged its strong fixed-line franchise. This growth has enabled the business to become more profitable as the network’s fixed costs are spread over a much larger customer base.

China Telecom produced the best second-quarter result of the Chinese telcos, with service revenue growth of 3.7% compared with the 1.8% industry growth, EBITDA growth of 5.6% versus the industry average growth of 2.0%, and net profit growth of 9.9% compared with the 6.9% industry average. Industry services revenue growth slowed from an average of 7% from 2021-23, which we attribute mainly to services provided to businesses and local government being negatively affected by the economy. Basic telecom services such as mobile, broadband, and pay TV, had revenue rise in the low single digits, broadly in line with recent trends. However, the business-focused revenue streams, such as cloud, system integration, data services, and cybersecurity and data centers, slowed. For example, telecom industry cloud services revenue—which increased at an average of 100% per year from 2020-22 and 60% in 2023—rose by only 21% in the first half of 2024. This was still greater than the 4.6% growth reported by Alibaba Cloud, and China Telecom and China Mobile now report cloud service revenue that is similar to Alibaba's. We retain our HKD 5.60 per share fair value estimate for China Telecom and our no-moat rating.