China Telecom Corporation Limited27 August 2009 www.chinatelecom-h.com

2009 Interim 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

Executive Vice President & CFOMadam Wu Andi

4

Overview

Business Review

Financial Performance

Agenda

Overview

6

“eSurfing” gaining market traction accelerating mobile growth

Integrated operation of wireline, mobile & Internet services enhancing core competitiveness

3G & full services edge ready to create value

Stringent CAPEX control supporting strong free cash flow

Highlights

7

Notes: Unless otherwise stated in this presentation1. EBITDA was calculated before CDMA Network Leasing Fees (RMB3,583 mil) in 1H2009 to enhance comparability2. Net Profit represents profit attributable to equity holders of the Company3. Free Cash Flow = EBITDA - CDMA Network Leasing Fees - CAPEX - Income Tax Expenses4. All financial data are unaudited & exclude Upfront Connection Fees

Results On Track as Planned

1H2008

89,351

44,268

49.5%

11,606

0.143

21,669

2008.12 Change

208.35

27.91

44.27

-8.99

11.37

4.78

14.8%

-2.1%

-7.2pp

-27.5%

-27.5%

-9.3%

Operating Revenue (RMB Mil)

EBITDA (RMB Mil)

EBITDA Margin

Net Profit (RMB Mil)

EPS (RMB)

Free Cash Flow (RMB Mil)

Access Lines in Services (Mil)

Mobile Subs (Mil)

Broadband Subs (Mil)

Change1H2009

102,554

43,339

42.3%

8,412

0.104

19,652

2009.6

199.36

39.28

49.05

8

IFRS-based Results (Incl. Connection Fees)

1H20091H2008

Operating Revenue (RMB Mil)

EBITDA (RMB Mil)

EBITDA Margin

Net Profit (RMB Mil)

EPS (RMB)

103,146

43,931

42.6%

9,004

0.111

90,379

45,296

50.1%

12,634

0.156

9

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

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

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

Revenue Growth Drivers

-10.5pp +4.7pp +2.1pp +0.6pp

WirelineVoice

Services*

1H2008 WirelineOthers

WirelineInternet& Data

Business**

Wireline VAS &Integrated

Information Services***

1H2009

RMB Mil

89,3515481,875

-9,425

4,203

Wireline revenue 3.1% Mobile 16,002

102,554 Overall

Revenue+14.8%

10

1H2008 1H2009

2007 1H2009

49.0% 48.9%

Wireline Voice Revenue

Wireline Non-Voice Revenue/Total Wireline Revenue

Resilient Wireline Performance Despite Intensified Challenges

RMB Mil 52.6%

38,86645,492

89,351 86,552

Major Initiatives

Fostering development of wireline non-voice business & increasing its penetrationPromoting integrated operation of wireline voice, non-voice & mobile servicesStrengthening cost control to maintain profitability

Challenges

Wireline revenue 3.1% with wireline voice revenue 18.7% mainly due to:

Global economic downturn affecting most notably in eastern coastal provinces & voice revenue from government & enterprise customers

Increasing mobile substitution resulting from intensified mobile market competition

Accelerating loss of PAS subs

50,485 41,060

2008

48.1%

+17.0%

-18.7%

* As the company is managed on an integrated business model, no segment reporting is prepared for its wireline or mobile services. The 2008 & 1H2009 wireline EBITDA figures are 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 figures.

Note:

Wireline Non-Voice Revenue

43.5%

Wireline Revenue

Wireline EBITDA Margin*

11

Accelerating Mobile Growth

4Q2008 1Q2009 2Q2009

-1.17

6.444.93

Sub Net Adds(Mil)

5,4415,865

6,949

308.5

294.3

330.7

Service Revenue(RMB Mil)

MOU(Minute)

“eSurfing” brand gaining market traction

Mobile net adds, usage & service revenue continued to grow steadily over the months

Strong mobile growth driving sustainable development

1H2009: Stable ARPU of RMB63.61H2009: Stable ARPU of RMB63.6

Continuous Growth in Mobile Net Add Market ShareMobile Subs, Usage & Revenue

2009.1：12.0%2009.6：28.7%

12

As of full year operating revenue

2008 2009E

Stringent CAPEX Control Supporting Strong Free Cash Flow

Optimizing CAPEX structure to enhance investment return

To control full year CAPEX within budget (RMB39.2 bn)

Supporting broadband development & enhancing integrated service edge of “wireline + wireless”Internet:

7.4 mil broadband access capacity

Customer access bandwidth

Coverage in cities

Coverage in rural areas

44,000 WiFi hotspots (Total: 71,000)

RMB Mil

39,200

-19.0%48,410

26.2%

-19.0%-19.0%

17,03318,783

1H CAPEX

2M: 90%

8M: 68%

2M: 72%

4M: 67%

CAPEX

13

3G & Full Services Edge Ready to Win Mid-to-High End Customers

Leading 3G Network & Services

Enriched Terminal Supply

Compelling Applications

1st mover advantage of 3G scale network with the most comprehensive coverage

By 2009.7, EVDO network already covered 342 cities & >2000 counties nationwide

Strengthened service capabilities leading to enhanced customers’ perception

Target of ~200 models of EVDO handsets of volume >5 mil in

supply progressively in 2H2009

2009.6: Open channel procurement ratio already expanded to 40%

Promoting customized handsets to satisfy demand of specific

customer segments

Enterprises: Mega-Eye, Integrated Office Administration, eSurfingChat, Push-Mail…

Trendy youth: iMusic, eSurfing Live, Mobile Video…

Mass market: 189 eMail, Mobile Broadband…

Appropriate increase in sales & marketing initiatives to win mid-to-high end customers to enhance value

Appropriate increase in sales & marketing initiatives to win mid-to-high end customers to enhance value

A Leading 3G

& Full

Services Operator

A Leading 3G

& Full

Services Operator

13

Business Review

15

Revenue Breakdown

1H20091H2008RMB Mil

Wireline

Voice

Internet Access

VAS & Integrated Information Services

Managed Data & Leased Line

Others

Mobile

Voice

Internet Access

VAS & Integrated Information Services

Sale of Terminals

Total

89,351

50,485

19,481

11,984

5,025

2,376

-

-

-

-

-

89,351

-3.1%

-18.7%

19.0%

15.6%

10.0%

23.1%

-

-

-

-

-

14.8%

Change

86,552

41,060

23,181

13,859

5,528

2,924

16,002

9,051

1,347

2,416

3,188

102,554

16

Revenue Structure

8.8% 6.8%

Mobile Voice: 8.8%

Mobile Non-voice: 6.8%

Wireline Non-voice: 44.4%

Wireline Voice: 40.0%

40.0%

Internet Access22.6%

VAS & Integrated

Information Services13.5%

Managed Data & Leased Line

5.4%

Others2.9%

1H2009 Full Services Revenue Structure

Changes

Optimized revenue structure

New revenue growth driver

Mobile revenue/Total revenue: 15.6% ( 3.4pp vs 4Q2008)

Reduced wireline operating risk

Wireline non-voice/Total wirelinerevenue:52.6% ( 9.1pp vs 1H2008)

Voice: 48.8% Non-voice: 51.2%

17

Wireline Voice Services

Major Initiatives

Government & Enterprise: Consolidating wirelinevoice usage via bundling & package concessions

Household: Strengthening bundling of wireline with mobile & broadband services

Individual: Increasing air-time subsidy to attract mid-to-high end PAS subs to migrate to mobile services

Access Lines in Services

Mil Change

Household

Government & Enterprise

Public Telephone

PAS

2008.12

Total

118.4

27.8

15.3

46.8

208.3

114.8

30.8

15.3

38.5

199.4

-3.0%

10.8%

0.0%

-17.7%

-4.3%

2009.6

1H2009

Voice Usage

Change

Local Usage (Pulses Mil)

DLD Usage (Minutes Mil)

ILD Usage (Minutes Mil)

1H2008

189,712

49,864

784

166,638

43,359

629

-12.2%

-13.0%

-19.8%

18

Wireline Broadband Services

Major Initiatives

Enhance government & enterprise broadband penetration via upgrading broadband access speed & service quality

Enhance household broadband penetrationvia integrated offering & value exchange measures

Differentiate wireline & mobile broadband service value models to ensure the stickiness of mid-to-high end wireline broadband subs

Promote customer account operation to strengthen integrated development of wireline & mobile broadband

RMB Mil +18.2%

1H2008 1H2009

19,24822,745

39.95

1H2008 1H2009

49.05+10.8%Mil +10.8%

2H2008

44.27

A relatively low broadband household penetration in services area (15.3%) with great development potential

4.784.32

4.21

84.8 81.283.1

Access Revenue

Subscribers

Net Adds Broadband ARPU (RMB)

19

Wireline VAS & Integrated Information Services

Major Initiatives

Seizing changes in market informatizationdemand & rapidly upgrading information service capability & standard

Enriching the content of VAS & integrated information services

Key services of growth:

Best-Tone InformationExpanding Best-Tone Information market using wireline & mobile access; leveraging network resources to actively promote e-Commerce services

IT Services & ApplicationsActively extending informatizationservices to support government & enterprise customers and expand total solution services

1H20091H2008

RMB Mil+15.6%

IT Services & ApplicationsRMB Mil

16.0%

11,98413,859

13.4%

Revenue/Total Wireline Revenue

Best-ToneInformationRMB Mil

+16.6% 2,4502,101

1H20091H2008

+50.1% 2,328

1,551

1H20091H2008

Revenue

Key Services

20

Mobile Services

Major Initiatives

2Q20094Q2008 1Q2009

26,375

35,777Minutes Mil

26,821

Voice

56.6%Internet Access

8.4%

VAS & Integrated Information Services

15.1%

Others

19.9%

Revenue Breakdown

Voice Usage

Cross-sell to existing government & enterprise and household customers to accelerate mobile subs growth

Persist in mobile development strategy of targeting mid-to-high end customers & profitable scale development; strengthen 3G core competitiveness to realize scale development of mid-to-high customers

Enhance network, distribution channels and improve customer relation to strengthen customers’ perception & loyalty

21

Mobile VAS & Integrated Information Services

Major Initiatives

SMS Usage

2009.62008.12

Mil4.0

8.6

19.6

2009.62008.12

2Q20094Q2008

2.3

Mil

2,028

3,331Mil

Promoting new applications development for “Internet handset”to stimulate mobile data & VAS sub & usage growth

Mobile Best-Tone

Unified Payment 189 email

Mobile Video

Full Screen Browsing

Location & Digital Map1Q2009

2,875

iMusic eSurfing Live

Color Ring Tone Subs

Internet Access Subs

22

Integrated Operation to Enhance Value

Internet ResourcesChinaNet, CN2, ChinaVnetInternet Resources

ChinaNet, CN2, ChinaVnetMobile Network Resources

CDMA1X, CDMA2000EVDOMobile Network Resources

CDMA1X, CDMA2000EVDO

Fulfill customer demand of integrated communications & mobile Internet

Enhancing Customers’

&

Shareholders’Values

Enhancing Customers’

&

Shareholders’Values

Wireline Network ResourcesDWDM, SDH, ASON, PON, XDSL

Wireline Network ResourcesDWDM, SDH, ASON, PON, XDSL

Establish differentiated edge via integrated operation

Avoid single product direct price competition to protect overall industry value

One mobileaccount number to authenticate

access tomulti-

services

One mobileaccount number to authenticate

access tomulti-

services

Focus on businessmen, trendy youth & mass market; enrich Internet handset content to attract mid-to-high end customers

Offer multi broadband access packages; promote account numberoperation& multi-servicesbundling

Household Customers Government & Enterprise Customers

Individual Customers

Leverage core competitiveness of

integrated industry applications

to provide full services

total solutions

22

Financial Performance

24

Key Financial Information

Strict cost management with appropriate increase of initiatives in high growth services like mobile to promote profitable scale development & integrated operation edge to enhance future profitable growth

Strict cost management with appropriate increase of initiatives in high growth services like mobile to promote profitable scale development & integrated operation edge to enhance future profitable growth

1H2008RMB Mil Change1H2009

89,35171,627

Operating RevenueOperating Expenses

14.8%24.0%

Depreciation & Amortization

Network Operations & Support

Incl: Mobile Network Leasing

Personnel

SG&A

Incl: Mobile Handset Subsidies

Interconnection & Others

Incl: Wireline Interconnection

Mobile Interconnection

Cost of Mobile Terminals Sold

26,544

15,607

-

13,857

10,995

-

4,624

3,481

-

-

-1.9%

29.0%

-

18.0%

60.0%

-

88.6%

-7.9%

-

-

Operating Profit 17,724 -22.6%13,727

102,55488,827

26,029

20,133

3,583

16,351

17,595

4,839

8,719

3,205

1,397

2,741

24

25

Cost Structure

1H2008 1H2009

Operating Expenses

86.6%80.2%

Depreciation & Amortization

Network Operations & Support

SG&A

Personnel

Interconnection & Others

25.4%

15.9%

17.2%

8.5%

29.7%

17.5%

15.5%

12.3%

5.2%

19.6%

Reduced PAS depreciation resulting

from PAS asset impairment loss in

2008

Increased promotion of branding & sales

initiatives for new services like mobile

Addition of mobile network leasing fees & increased initiatives on network optimization

Operating Expenses as a % of Operating Revenue

26

Investing in Mobile for Future Profitable GrowthSustainable BenefitsSustainable Benefits

2G+3G handset models in 1H2009: ~300

59 vendors of 166 EVDO handset models bidding in 2009.7 tender

Mobile sub bundling penetration: 48%

Consolidate wireline performance via integrated development

Fast growing mobilesubs & revenue

Mobile Sales & Marketing

Initiatives Fully Expensed to

1H2009 Income Statement

Appropriate increase in sales & marketing initiatives in pace with accelerating mobile revenue

growth to promote profitable scale development of mobile services

Mobile subs: 39.28 mil

Mobile ARPU: RMB63.6

Mobile net add market share: 21.0%

Enhanced integration synergy

Activated CDMA value-chain

26

27

CAPEX Structure

Optimized CAPEX Structure

1H2008 1H2009

RMB Mil18,783 17,033

6.5%

19.1%

55.1%

4.7%

17.4%

64.1%

13.8%10.2%

0.5%

0.0%

5.0% 3.6%

Internet & Data

IT & Support

WirelineSwitches

PAS

Others*

Local Transmission & Access

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

Optimized CAPEX structure to support strategic transformation

Internet & Data 5.5% yoy

IT & Support 34.7% yoy

Wireline Switches 34.4% yoy

Local Transmission & Access 33.0% yoy

PAS -

Others 17.4% yoy

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

Improving network capability for supporting transformation

28

Solid Financial Strength

-3.4pp -0.14x

2008.12 2009.6 2008.12 2009.6

35.4%

32.0%1.11

0.97*

Note: * Net Debt/Simple Annualized 1H2009 EBITDA

Strong free cash flow effectively supporting Company’s solid financial strengthStrong free cash flow effectively supporting Company’s solid financial strength

Total Debt/Total Capitalization Net Debt/EBITDA

Enhancing integration of wireline & mobile resources to improve asset utilization Enhancing

Shareholders’Value

Perfecting front-end & customer-focused financial management system to fully support business operation in all perspectives

Strengthening centralized treasury management; timely capturing low cost fund-raising opportunity to lower finance cost

Tilting resources allocation toward key services & strengtheningmeasures of investment evaluation to enhance return

Increasing risk management capability to effectively control financial risk

Robust Value Management

29

30

Solid Execution On Track to Achieve Targets

2011 Operating Targets

(Previously Outlined*)

2011 Operating Targets

(Previously Outlined*)

Creating value via integrated operation

Profitable & scale development of mobile services

Steady development of wireline services

1H2009 Progress

(vs. 2008.12)

1H2009 Progress

(vs. 2008.12)

>45%>30%30-40%

100 mil>35%

48% (+13pp)26% (+6pp)22% (+1pp)

39.28 mil (+11.37 mil)29.4% (+2.4pp)

52.6% (+6.5pp)

49.05 mil (+4.78 mil)

55%

65 mil

Mobile sub bundling penetrationOneHome subs/Household subsBizNavigator SME penetration

Mobile subsMobile data/Mobile service revenue

Wireline non-voice revenue/Total wirelinerevenueBroadband subs

Note: * Please refer to slide 15 of March 24, 2009 presentation

30

31

Thank You

www.chinatelecom-h.com

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

32

Appendix 1Extracted from unaudited consolidated statement of comprehensive income for the 6 months ended 30 June 2009[incl. upfront connection fees]

Note: * Restated due to the adoption of the new IFRIC 13 “Customer Loyalty Programmes”

1H2008(Restated)*RMB Mil 1H2009

Profit Before Taxation

Income Tax

Profit for the Period

Equity Holders of the Company

Minority Interests

16,493

(3,816)

12,677

12,634

43

Operating Revenue 90,379 103,146

Upfront Connection Fees 1,028 592

Operating Expenses (71,627) (88,827)

Net Finance Costs (2,289) (2,268)

Investment Income, Share of Profit from Associates 30 75

12,126

(3,071)

9,055

9,004

51

33

Appendix 2 Extracted from unaudited consolidated statement of financial position as at 30 June 2009 [incl. upfront connection fees]

RMB Mil 2009.6.302008.12.31

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

55,499

384,838

440,337

225,789

214,548

213,036

1,512

176,790

48,999

49,252

373,118

422,370

204,816

217,554

216,017

1,537

171,854

32,962

34

Appendix 3 Detailed operating revenue breakdown for the 6 months ended 30 June 2009 [incl. upfront connection fees]

Note: * Restated due to the adoption of the new IFRIC 13 “Customer Loyalty Programmes”

RMB Mil

Total

VoiceLocal

ILD

Internet AccessVAS & Integrated Information ServicesManaged Data & Leased LineOthers

Wireline Revenue

Mobile RevenueVoiceInternet Access

Interconnections

VAS & Integrated Information ServicesSale of Terminals

Upfront Connection Fees

DLD

1H2008(Restated)* 1H2009

1,02850,48531,28911,3141,3516,531

19,48111,9845,0252,376

--

90,379

90,379

---

59241,06025,2699,4301,0825,279

23,18113,8595,5282,924

16,0029,051

103,146

87,144

1,3472,4163,188