China Telecom Corporation Limited24 March 2009 www.chinatelecom-h.com

2008 Annual Results

2

Certain statements contained in this document may be viewed as “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933 (as amended) and Section 21E of the U.S. Securities Exchange Act of 1934 (as amended). Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of China Telecom Corporation Limited (the “Company”) to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. In addition, we do not intend to update these forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company’s most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the “SEC”) and in the Company’s other filings with the SEC.

Forward-Looking Statements

3

Management Team

Chairman & CEOMr. Wang Xiaochu

President & COOMr. Shang Bing

Executive Vice President & CFOMadam Wu Andi

Executive Vice PresidentMr. Yang Jie

4

Overview

Business Review

Financial Performance

Agenda

Overview

6

Successful transformation maintaining company’s robust fundamentals

Mobile services gaining momentum with

successful launch of “eSurfing”

Strong free cash flow & solid balance sheet

ensuring company’s stable dividend & sustainable

development

Effective integrationof wireline &

mobile resources consolidating full services’

competitive edge

Highlights

7

Notes: Unless otherwise stated1. EBITDA used in this presentation was calculated before CDMA Network Leasing Fees (RMB1,504 mil) in 2008 to enhance comparability2. Net Profit used in this presentation represents profit attributable to equity holders of the Company3. All 2007 & 2008 data used in this presentation included the results of Beijing Telecom acquired in June 20084. Free Cash Flow = EBITDA – CDMA Network Leasing Fees - CAPEX – Income Tax Expenses5. Adjusted Results: Adjusted Operating Revenue excluded Upfront Connection Fees of RMB2,022 mil; Adjusted EBITDA, Net Profit & EPS excluded Upfront

Connection Fees & the impact of one-off exceptional items of natural disasters & PAS asset impairment loss (see slide 27)6. Adjusted Results in 2007 excluded the impact of revaluation deficit of PPE of RMB2,755 mil (after tax impact of RMB2,109 mil)

Robust Underlying Results

Change

Adjusted Results

20082007 20082007

IFRS-based Results

Operating Revenue(RMB Mil)

EBITDA(RMB Mil)

EBITDA Margin

Net Profit(RMB Mil)

EPS (RMB)

Free Cash Flow(RMB Mil)

180,882

90,348

49.9%

24,195

0.30

37,310

186,801

84,696

45.3%

884

0.01

35,575

177,588

87,054

49.0%

23,010

0.28

34,016

184,779

85,889

46.5%

20,066

0.25

36,768

4.0%

-1.3%

-2.5pp

-12.8%

-12.8%

8.1%

8

Note: * Wireline Voice Services Revenue included Monthly Fees, Local Usage Fees, Upfront Installation Fees, DLD/ILD and Interconnection Revenue

** Internet & Data Business included Internet Access, Managed Data and Leased Line businesses

*** VAS & Integrated Information Services included Wireline VAS, Internet VAS, Internet Information Services, Best-Tone Information Services, Video Applications and IT Services & Applications

Unless otherwise stated, all financial data used hereinafter excluded Upfront Connection Fees

Revenue Growth Drivers

-8.6pp +5.7pp +3.3pp +0.2pp

WirelineVoice

Services*

2007 OthersInternet& Data

Business**

VAS & Integrated Information Services***

2008

RMB Mil

177,588 4375,877-15,294

10,017

Contribution to 0.6% of Wireline revenue growth

Mobile Services 6,154

184,779

OverallRevenue

+4.0%

9

Wireline Revenue Wireline EBITDA Margin*

RMB Mil

Wireline Voice Revenue

Wireline Non-Voice Revenue

Wireline Non-Voice Reveue/Total Wireline Revenue

Stable Wireline Performance

[*]%+0.6%

+24.8%

2007 2008

177,588 178,625

65,963

111,62596,331

37.1%

46.1%

82,294

2007 2008

49.0% 48.0%

* As the company is managed on an integrated business model, no segment reporting is prepared for its wireline or mobile services. The above 2008 wireline EBITDA figure is simply derived from attributing certain major separately-identifiable costs to the respective wireline or mobile services with the remaining common costs being allocated in proportion to the respective revenue. Accordingly, no undue reliance should be placed on the unaudited figure.

Note:

Effective Integration Driving Synergy

10

Successfully acquired CDMA business to

consolidate full services integrated offering

Personnel & Culture

Integration

Brands & Customer Resources

Products & Servicing

System

Network Resources

Receive a wealth of mobile talents from China UnicomPromptly unify into one company, one vision & one value

Leverage the company’s premierbranding with “eSurfing” to promote mobile services developmentCross-sell to wireline& mobile customers with integrated services to drive customer value

Bundle & package Wireline + Mobile services to strengthenfull services’competitive edgeIntegrate CDMA sales outlets into existing channelsto establish a comprehensive multi-channelservicing system

Integrate planning, construction & maintenance of wireline & mobile networksUnify & consolidate CRM & billing system to enhance customer experience

11

Note: Unaudited figures above

ARPU

4Q2008 2009.1-2

63.6 63.6

2008.10 2008.11 2008.12 2009.1 2009.2

Mil

Average Monthly Service Revenue

Monthly Net Adds

Mobile Services Gaining Momentum

+2.7%

4Q2008 2009.1-2

RMB Mil

1,814 1,863

RMB

-0.68-0.43

-0.06

1.02

1.70

12

Mobile Network CAPEX by ParentCo

Abundant network investments

Core competitiveedge

Scale development ofmobile & 3G services

Mobile Network Revamp & Upgrade by ParentCo

Phase 1: end-March 2009

Phase 2: end-July 2009

Complete CDMA 1X upgrade & revamp in all cities above prefecture level

Complete CDMA2000 EVDO coverage in 100 key cities

Migrating 133/153 subs to “eSurfing”network platform

2009E2008

47,000

23,600

Complete CDMA2000 EVDO coverage in all cities above prefecture level(>300 cities)

Nationwide network coverage

In cities: 97% 4pp

In rural areas: 92% 11pp

RMB Mil

13

CAPEX

As a % of Operating Revenue

2007 2008 2009E

Stringent CAPEX Control

Stringent CAPEX control toenhance investment return

2008 CAPEX > RMB47 bn budget due to investments in full services integrated operations in 4Q08

Tilting investments toward transformation & high growth businesses

Strictly controlling investments in traditional businesses to enhance return

2009 CAPEX budget: RMB39.2 bn( 19% yoy) leads to sharp decline in CAPEX/Operating Revenue ratio

RMB Mil

46,334

39,200

-19.0%48,410

26.2%26.1%

-19.0%-19.0%

14

Dividend Per Share

HKD

Stable Dividend

The Board of Directors recommendsto the shareholders a final dividend

of HKD0.085 for 2008

Proper balance between shareholders’ cash return demand and company’s future investment needs

Supported by strong free cash flow and solid financial strength

Reflecting the Board’s confidence in the future of the business despite the 2008 results being severely impactedby certain one-off exceptional items

0.085 0.0850.085

2007 20082006

15

Creating value via integrated operationBy 2011

BizNavigator SME penetration: 30-40%OneHome subs/Household subs: >30%Mobile sub bundling penetration: >45%

Customer-focused Innovative Informatization Strategy via Full Services Integrated Offering

Enhancing Shareholders’Value

Persistent in innovation to enrich

informatizationproducts & services

A Promising Future

15

>100 mil>35% of mobile service revenue

Profitable & scale development of mobileservicesBy 2011

Mobile subs: >100 milMobile data: >35% of mobile service revenue

55% of operating revenue65 mil

Steady development of wireline servicesBy 2011

Non-voice services: 55% of operating revenueBroadband subs: 65 mil

Business Review

17

RMB Mil 20082007 Change

Note: * Mobile revenue for the period of 4Q08 only

Revenue Breakdown

RMB Mil

Wireline Voice

Local Telephone

Long Distance

Interconnections

Internet Access & Data

Internet Access

Managed Data & Leased Line

VAS & Integrated Information Services

Others

Mobile*

Mobile Service

Mobile Terminal Sale

Total

111,625

70,478

27,664

13,483

41,000

31,817

9,183

19,781

5,182

-

-

-

177,588

96,331

59,307

24,660

12,364

51,017

40,786

10,231

25,658

5,619

6,154

5,441

713

184,779

-13.7%

-15.9%

-10.9%

-8.3%

24.4%

28.2%

11.4%

29.7%

8.4%

-

-

-

4.0%

18

2008

Wireline Voice Services

Access Lines in Services

Mil Change2007.12

Total

Voice Usage

Change2007

Bundling & packaging different services, leveraging customer brandsof “BizNavigator” & “OneHome” to stablizewireline voice usage & protect wireline value

Further enriching information services & industry applications to stimulate wireline voice usage

2008.12

Major Initiatives

Household

Government & Enterprise

Public Telephone

PAS

121.8

25.0

15.8

58.0

220.6

118.4

27.8

15.3

46.8

208.3

-2.8%

11.2%

-3.2%

-19.3%

-5.6%

Local Usage (Pulses Mil)

DLD Usage (Minutes Mil)

ILD Usage (Minutes Mil)

407,445

99,902

1,664

372,477

98,723

1,572

-8.6%

-1.2%

-5.5%

19

As a % of Total Customer Segment Revenue

Customer-focused Operation to Enhance Value

Government & Enterprise Customer

Further refined industry segmentation & enriched communications & information applications to enhance customer value

“BizNavigator” customers : 2.53 mil ( 34.1% yoy)

Further refined household segmentation & offered enriched total household solution packages of communications & information services, targeting mid-to-high end customer

“OneHome” packaged-customers : 23.93 mil ( 125.4% yoy)

Government & Enterprise Customer

20082007

Household Customer

As a % of Total Customer Segment Revenue

Revenue Growth

+2.9%

46.4%45.3%

Revenue Growth

+10.9%

34.9%

36.8%

20082007

20

Major Initiatives

Fully respect PAS customer’s choice with proactive targeted marketing for those potential sub to migrate to mobile services to retain customer value

Actively utilize existing resources to lower PAS operating costs & to ensure profitability

Formulate effective measures to maintain services quality & protect customer benefits in the coming few years

Stop PAS investments & handset subsidies in 2009 & control other PAS operating costs to reduce financial risk

PAS Operating Risk Effectively Mitigated by Proactive Measures

2008.12

PAS Subs(Mil) 46.8

40% of existing PAS services are bundled with broadband, wireline& VAS services, enhancing a relatively stable performance

Aggressively reduced PAS investments & handset subsidies in last 4 years to maintain PAS return

2008

PAS Services Revenue(RMB Mil)

16,386

2007.12

58.0

2007

21,319

21

Access Revenue

Broadband ARPU (RMB)

Robust Broadband Services

Major Initiatives

Leveraging competitive edge in wireline broadband access & promoting high-end service packages to increase broadband services value

Enriching industry & household applications to stimulate scale development of broadband access services

Promoting “C+W” services & broadband account number roaming operation to establish a solid foundation for full services offering

Targeting net adds of 8 mil broadband subs in 2009

RMB Mil +28.6%

2007 2008

31,30340,243

81.4 83.8

35.747.36

8.53

2007.12 2008.12

44.27

Net Adds

+23.9%

Subscribers

Mil

22

Wireline VAS

Best-tone Information

IT Services &Applications

Internet VAS

Internet Information

Video Applications

48.3%

9.4%

18.7%

13.7%

5.3%

4.6%

Wireline VAS & Integrated Information Services

Note: * Video Applications included Video Conferencing, Monitoring Services & IPTV

Major Initiatives

Offer integrated information services to satisfy information search, applications & consumption needs of individual, household, government & enterprise customers

Focus on business travel & communication assistant services to accelerate scale operation of Best-Tone

Enhance differentiated advantages in “IT Services & Applications” & “Video Applications” services by customized terminals & integrated services package of broadband,wireline & mobile

8.3%

44.6%

83.8%

37.2%

79.5%

100.8%

Wireline VAS

Best-ToneInformation

IT Services & Applications

Internet VAS

InternetInformation

VideoApplications*

20082007

19,78125,658

RMB Mil+29.7%

Revenue

Revenue Growth & Mix

23

High End Subs Proportion: 20%

Focusing Mid-to-High End Customers

Offering Differentiated

Services

ProfitableScale

Development

Mobile Sub Bundling Penetration:

>45%

Fully utilize existing customer resources

Leverage extensive distribution channels

Target mid-to-high end customers to drive efficiency

Package & bundle Wireline + Mobile services

Capitalize on brand recognition of Internet handsets

Leverage synergies

Optimize resources allocation

Effectively control selling expense

To achieve moderate scale & efficiency of

mobile business

Next 2-3 Years

Mobile Strategies

23

24

Full Services Offering

24

Customer-focused innovativeinformatization strategy

Strengthen operating control especially on PAS

& handset subsidies to reduce operating risk

Further accelerate broadband & VAS development to

consolidate wirelinefundamental

Fully leverage integrated operation advantage to realize

profitable scale development

Enrich “Internet handset”brand content to formulate differentiated competitiveedge & accelerate mobile

services development

Financial Performance

26

Key Financial Information

2007RMB Mil 2008

Operating RevenueWirelineMobile

Operating ExpensesDepreciation & AmortizationNetwork Operations & Support

Incl: Natural DisastersMobile Network Leasing

PersonnelSG&A

Incl: Mobile Handset SubsidiesInterconnection & Others

Incl: Mobile InterconnectionAsset Impairments

Incl: PAS Asset ImpairmentNatural Disaster Impairment

Operating Profit

177,588177,588

-143,141

52,60729,856

--

27,41924,294

-8,965

----

34,447

184,779178,625

6,154181,656

53,88036,0963,2151,504

28,94627,935

88310,632

61624,16723,954

213

3,123

27

One-off Exceptional Items

Pre-Tax ImpactRMB Mil After-Tax Impact

Natural Disasters

Network Operations & Support

Asset Impairment Loss

PAS Asset Impairment Loss

3,428

3,215

213

23,954

2,838

18,366

IFRS-based EBITDA

Ex-Upfront Connection Fees

Ex-Impact of Natural Disasters

Adjusted EBITDA

IFRS-based Net Profit

Ex-Upfront Connection Fees

Ex-After Tax Impact of Natural Disasters

Ex-After Tax Impact of PAS Asset Impairment Loss

Adjusted Net Profit

84,696

(2,022)

3,215

85,889

884

(2,022)

2,838

18,366

20,066

RMB Mil RMB Mil

28

Operating Expenses* as a % of Operating Revenue

Note: * Operating Expenses excluded impact of one-off exceptional items of natural disasters & PAS asset impairment loss

Cost Structure

2007 2008

Operating Expenses83.5%80.6%

Depreciation & Amortization

Network Operations & Support

SG&A

Personnel

Interconnection & Others

29.2%

15.7%

15.1%

5.7%

29.6%

16.8%

15.4%

13.7%

5.1%

17.8%

29

Cost Initiatives

Investing for Future Growth

29

Cost Initiatives

Pro-actively optimizing cost structure to support integrated & differentiated operating strategies to ensure sustainable development

SG&A:

Increased investments for jump-starting mobile services (incl. brand building & channels establishment)

Handset subsidies restricted to mid-to-high-end subs & linked to their value contribution; strictly controlled handset subsidies for low-end subs

Network Operations & Support:

Increased resources allocation to promote transformation services development

Strengthened network optimization & maintenance to improve customer experience

Personnel:

Measured increase for attracting & retaining talents especially on mobile, IP, IT & information services

Depreciation & Amortization:

Strengthened CAPEX control & enhanced assets utilization via redeployment, leasing & sales

30

CAPEX Structure

Note: * Others included IDC infrastructure, broadband & mobile access supporting points, electricity & air-conditioning supply facilities

Optimized CAPEX structure to support strategic transformation

Internet & Data 31.3% yoy

IT & Support 13.0% yoy

Wireline Switches 30.7% yoy

Local Transmission & Access 46.4% yoy

PAS 74.8% yoy

Others 30.6% yoy

Tilting investment toward transformation businesses & strictly controlling CAPEX on wireline voice services

Improving network capabilities for supporting full services integrated operations

Optimized CAPEX Structure

RMB Mil46,334 48,410

2007 2008

8.8%

18.8%

42.9%

5.8%

23.5%

53.9%

20.2%10.4%

2.3%0.6%

7.0%

5.8%

Internet & Data

IT & Support

WirelineSwitches

PAS

Others*

LocalTransmission & Access

31

RMB Mil

Total Debt/Total Capitalization

Adjusted Free Cash Flow

Net Debt/Adjusted EBITDA

Sustained Solid Financial Strength

+4.8pp

+8.1% +0.14x

30.6%

2007.12 2008.12

34,01635.4%36,768

2007 2008

0.97

2007 2008

1.11

Post CDMA Business Acquisition

Integrating wireline & mobile resources to enhance asset utilization and support integrated services offering Enhancing

Shareholders’Value

Strengthening internal financing management; timely capturing low cost fund-raising opportunity to ensure abundant funding for full services operation

Persisting in value management to enhance return of sales initiatives & CAPEX; optimizing financial structure & controlling financial risk

Tilting resources allocation toward high value customers & increasing value-enhancing marketing initiatives to achieve profitable scale development

Enhancing innovation in customer-focused financial management system & measures to ensure effective resources utilization

Innovative Measures to Support Full Services Integrated Offering

32

33

Thank You

www.chinatelecom-h.com

For further information & enquiries, please contact our Investor Relations Department at ir@chinatelecom-h.com

34

4Q2008

2008.12

Appendix 1 Mobile Services KPIs

Revenue (RMB Mil)

Service Revenue (RMB Mil)

EBITDA (RMB Mil)

EBITDA Margin

Voice Usage (Minutes Mil)

MOU (Minutes)

Subs (Mil)

Incl: Data Card Subs (Mil)

Color-Ring Tone Subs (Mil)

As the company is managed on an integrated business model, no segment reporting is prepared for its wireline or mobile services. The above 2008 mobile EBITDA figure is simply derived from attributing certain major separately-identifiable costs to the respective wireline or mobile services with the remaining common costs being allocated in proportion to the respective revenue. Accordingly, no undue reliance should be placed on the unaudited figure.

Note:

Service ARPU (RMB)

Data as a % of Service Revenue

27.91

2.35

8.64

6,154

5,441

107

1.7%

26,375

63.6

309

27.0%

35

Appendix 2 Extracted from audited consolidated income statement for the year ended 31 Dec 2008 [incl. upfront connection fees]

2007(Restated)*RMB Mil

Note: * Restated to include the financial impact of acquisition of Beijing Telecom

2008

Operating Revenue

Upfront Connection Fees

Operating Expenses

Revaluation Deficit

Net Finance Costs

Investment Income, Share of Profit from Associates

Profit Before Taxation

Income Tax

Profit for the Year

Equity Holders of the Company

Minority Interests

180,882

3,294

(143,141)

(2,755)

(4,288)

298

30,996

(6,704)

24,292

24,195

97

186,801

2,022

(181,656)

-

(5,076)

117

186

793

979

884

95

36

Appendix 3 Extracted from audited consolidated balance sheet as at 31 Dec 2008 [incl. upfront connection fees]

RMB Mil

Note: * Restated to include the financial impact of acquisition of Beijing Telecom

31.12.200831.12.2007(Restated)*

Current Assets

Non-current Assets

Total Assets

Total Liabilities

Total Equity

Equity Attributable to Equity Holders of the Company

Minority Interests

Current Liabilities

Non-current Liabilities

44,110

369,221

413,331

187,359

225,972

224,521

1,451

140,245

47,114

55,499

384,838

440,337

225,789

214,548

213,036

1,512

176,790

48,999

37

2007(Restated)*RMB Mil

Appendix 4 Detailed operating revenue breakdown for the year ended 31 Dec 2008 [incl. upfront connection fees]

Note: * Restated to include the financial impact of acquisition of Beijing Telecom

2008

Total

Upfront Connection FeesLocal Voice Business

Upfront Installation FeesMonthly FeesLocal Usage fees

DLDILDInterconnectionsInternet AccessManaged Data & Leased LineVAS & Integrated Information ServicesOthers

Wireline Revenue

Mobile RevenueMobile ServiceMobile Terminal Sale

3,29470,478

2,74125,43542,302

24,6123,052

13,48331,8179,183

19,7815,182

180,882

180,882

---

2,02259,307

2,57420,39636,337

22,0812,579

12,36440,78610,23125,6585,619

186,801

180,647

6,1545,441

713