China Telecommunications Corporation Explained

China Telecommunications Corporation
Trade Name:China Telecom
Former Name:Directorate General of Telecommunications
Native Name:中国电信集团有限公司
Type:State-owned enterprise
Founder:Ministry of Posts and Telecommunications
Location:Beijing, China
Shanghai, China
Area Served:China, Philippines
Industry:Holding company
Owner:Chinese Government (100%)
Revenue Year:2019
Income Year:2019
Net Income Year:2019
Assets Year:2019
Equity Year:2019
Footnotes:in consolidated financial statement
Website:

China Telecommunications Corporation, 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. It has three listed companies: China Telecom Corporation Limited, China Communications Services Corporation Limited and Besttone Holding Co., Ltd. .

History

The company originated as a government agency of the . 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.[1] 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.[2] According to the United States Department of Defense, the company has links to the People's Liberation Army.[3]

On 10 September 2002, a subsidiary, China Telecom, was listed.[4] [5] The listed company gradually acquired the assets from China Telecommunications Corporation.[4], however, China Telecommunications Corporation still owned the controlling stake in the company, for 70.89%.[4]

In 2009 China Telecommunications Corporation received some of the assets of China Satellite Communications.[6] [7]

The company provides fixed-line and Xiaolingtong (Personal Handy-phone System) telephone services to 216 million people as of April 2008,[8] and broadband internet access to over 38 million subscribers, providing approximately 62% (46 Gbit/s) of China's internet bandwidth.[9] On 2 June 2008, China Telecommunications Corporation announced that it would purchase China Unicom's nationwide CDMA business and assets for, giving it 43 million mobile subscribers. According to the company, the listed portion of China Telecom Group (China Telecom Corp., Ltd.) paid, the unlisted portion of China Telecom Group (China Telecommunications Corporation) paid .[2]

On 7 January 2009, China Telecommunications Corporation was awarded CDMA 2000 license to expand its business to 3G telecommunication.[10]

U.S. sanctions

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.[11] 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.[12] In October 2021, the FCC revoked China Telecom's operating license in the U.S.[13] In March 2022, the FCC designated a U.S. subsidiary of the company, China Telecom (Americas) Corp, a national security threat.[14]

Consolidation and expansion

On 2 June 2008, the company announced it would acquire China Unicom's CDMA business and network for in cash, a series of transactions aimed at transforming the company into a fully integrated telecommunications operator.[15]

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.[16]

China Telecom was chosen by the Chinese Government as an investor in the Philippines for providing telecom services.[17] [18] 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)[19] [20] [21] 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.[22] 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.[23]

Subsidiaries

Allegations of rerouted Internet traffic

On 8 April 2010, China Telecom rerouted about 15% of foreign Internet traffic through Chinese servers for 18 minutes.[25] The traffic included the commercial websites of Dell, IBM, Microsoft, and Yahoo! as well as U.S. government and military sites.[26] China Telecom denied hijacking any Internet traffic.[27]

See also

Notes and References

  1. 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. 1 November 1995. 26 July 2017. Ministry of Posts and Telecommunications (China). zh. https://web.archive.org/web/20171110115145/http://www.fsaic.gov.cn/xxgk/fgwj/200905/W020090521628973123021.doc. 10 November 2017. dead.
  2. Web site: 2007–2009 Three Year Financial Report. 1 March 2011. 26 July 2017. China Telecommunications Corporation. zh. 10 November 2017. https://web.archive.org/web/20171110171416/http://www.chinabond.com.cn/resource/1472/1488/1505/18682/21000/18612/21490/290684/291174/10499964/1298944108024650789738.pdf. live.
  3. News: Allen-Ebrahimian. Bethany. June 24, 2020. Defense Department produces list of Chinese military-linked companies. Axios. June 24, 2020. 25 June 2020. https://web.archive.org/web/20200625134940/https://www.axios.com/defense-department-chinese-military-linked-companies-856b9315-48d2-4aec-b932-97b8f29a4d40.html. live.
  4. Web site: 2016 Annual Report. 6 April 2017. 26 July 2017. China Telecom. 10 November 2017. https://web.archive.org/web/20171110115007/http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0406/LTN20170406631.pdf. live.
  5. Web site: List of H Share Companies (Main Board). 30 June 2017. 26 July 2017. Hong Kong Stock Exchange. 8 July 2017. https://web.archive.org/web/20170708125126/https://www.hkex.com.hk/eng/stat/smstat/chidimen/cd_hmb.htm. live.
  6. News: Industry shakeup creates 3 telecom giants. 25 May 2008. 25 July 2017. China Daily. 10 November 2017. https://web.archive.org/web/20171110115036/http://www.chinadaily.com.cn/china/2008-05/25/content_6709799.htm. live.
  7. News: China Satcom taken over amid telecom reshuffle. 10 April 2009. 25 July 2017. China Daily. 20 August 2017. https://web.archive.org/web/20170820115014/http://www.chinadaily.com.cn/china/2009-04/10/content_7667601.htm. live.
  8. https://web.archive.org/web/20060115045705/http://www.chinatelecom-h.com/eng/ir/kpi.htm China Telecom Key Performance Indicators
  9. Web site: Internet Filtering in China in 2004–2005: A Country Study . Opennetinitiative.net . 18 November 2010 . https://web.archive.org/web/20070928135524/http://www.opennetinitiative.net/studies/china/#toc2 . 28 September 2007 . dead .
  10. News: China issues 3G licenses. 8 January 2009. 28 September 2018. China Daily. Wang Xing. 28 September 2018. https://web.archive.org/web/20180928121454/http://www.chinadaily.com.cn/business/2009-01/08/content_7376941.htm. live.
  11. News: Mozur . Paul . 2021-01-01 . New York to Delist Chinese Telecom Firms in Symbolic Shift . en-US . . 2021-01-01 . 0362-4331 . 1 January 2021 . https://web.archive.org/web/20210101075008/https://www.nytimes.com/2021/01/01/business/nyse-delist-china-mobile.html . live .
  12. News: Shepardson . David . 2020-12-11 . FCC begins process of halting China Telecom U.S. operations . en . . 2020-12-11 . 20 August 2023 . https://web.archive.org/web/20230820030046/https://www.reuters.com/article/usa-china-tech-idUSKBN28K2ER . live .
  13. News: Shepardson . David . 2021-10-27 . FCC revokes authorization of China Telecom's U.S. unit . en . . 2021-10-28 . 20 August 2023 . 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/ . live .
  14. News: Shepardson . David . Satter . Raphael . 2022-03-26 . U.S. FCC adds Russia's Kaspersky, China telecom firms to national security threat list . en . . 2022-03-26 . 8 November 2023 . 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/ . live .
  15. News: ROUNDUP China Unicom acquires Netcom, sells CDMA assets as telco reorg takes off. 10 June 2008 . Forbes . 2 June 2008 . https://web.archive.org/web/20110604010459/http://www.forbes.com/feeds/afx/2008/06/02/afx5069042.html . 4 June 2011 .
  16. News: China orders sweeping telecom merger . 10 June 2008 . USA TODAY . 26 May 2008 . 30 May 2008 . https://web.archive.org/web/20080530021522/http://www.usatoday.com/money/industries/telecom/2008-05-26-china-telecom_N.htm . live .
  17. News: China Telecom to help establish 3rd PH telco player – Andanar. 10 December 2017. 28 September 2018. Rappler. Manila. 28 September 2018. https://web.archive.org/web/20180928121449/https://www.rappler.com/business/190950-china-telecom-selected-invest-philippine-3rd-telco. live.
  18. News: China Telecom picked to become the Philippines' third telecoms player. 11 December 2017. 28 September 2018. South China Morning Post. Hong Kong. Reuters. 28 September 2018. https://web.archive.org/web/20180928121428/https://www.scmp.com/business/article/2123794/china-telecom-picked-become-philippines-third-telecoms-player. live.
  19. Web site: Mislatel, now Dito Telecommunity, gets permit to operate as 3rd telco . . 9 July 2019 . 8 July 2019 . 11 April 2021 . https://web.archive.org/web/20210411154723/https://www.cnnphilippines.com/business/2019/7/8/Mislatel-Dito-Telecommunity.html . dead .
  20. Web site: Balinbin . Arjay L. . Mislatel to rebrand as 'Dito Telecommunity' after getting license . . 9 July 2019 . 8 July 2019 . 16 January 2021 . https://web.archive.org/web/20210116114212/https://www.bworldonline.com/mislatel-to-rebrand-as-dito-telecommunity-after-getting-license/ . live .
  21. Web site: Parrocha . Azer . PRRD hands Mislatel Consortium permit to operate as 3rd telco . . 9 July 2019 . 8 July 2019 . 8 July 2019 . https://web.archive.org/web/20190708152418/https://www.pna.gov.ph/articles/1074398 . live .
  22. 1064480636784660481. DICTgovph. OFFICIAL: NTC En Banc confirms Mislatel consortium as the country's New Telco Major Player READ full story here:… . 19 November 2018.
  23. News: Fenol . Jessica . DITO now available in Visayas, Mindanao; will be in NCR 'in a few weeks' . 4 July 2021 . ABS-CBN News . 8 March 2021 . en . 8 March 2021 . 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 . live .
  24. Web site: 22 April 2017. 2016 Annual Report. 26 July 2017. Besttone Holding. 35. zh. 14 December 2017. https://web.archive.org/web/20171214125045/http://static.sse.com.cn/disclosure/listedinfo/announcement/c/2017-04-22/600640_2016_n.pdf. live.
  25. News: Crittenden. Michael R.. 17 November 2010. Chinese Firm 'Hijacked' U.S. Data in April. The Wall Street Journal. 3 August 2017. 29 June 2017. https://web.archive.org/web/20170629091917/https://www.wsj.com/articles/SB10001424052748704648604575621071689674364. live.
  26. Web site: Section 2: External Implications of China's Internet-related Activities. dead. https://web.archive.org/web/20101202064913/http://www.uscc.gov/annual_report/2010/Chapter5_Section_2%28page236%29.pdf. 2 December 2010. USCC 2010 Annual Report. U.S.-China Economic and Security Review Commission. dmy.
  27. News: Young. Doug. 17 November 2010. China Telecom denies hijacking U.S. Web traffic. Reuters. 30 June 2017. 23 December 2010. https://web.archive.org/web/20101223001825/http://www.reuters.com/article/idUSTRE6AG1QY20101117. live.

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