China Telecom has created a number of mixed-ownership subsidiaries with which to expand its business. Yixin, a mobile messaging and social networking platform jointly launched with Web company NetEase Inc, is hosting 80 million users.

The company also owns China's largest online audio bookstore, which boasted a subscriber number exceeding 200 million in the first quarter of 2014.

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China Telecom has roughly 200 million mobile subscribers, nearly as many as the United States' telecom giant AT&T Inc. It also has 100 million broadband users in the country.

In addition to private investors, China Telecom is seeking partners from State-owned enterprises as well. The company on Tuesday inked a deal with energy giant China National Petroleum Corp to provide online payments and advertising services at gas stations. Details of the partnership were not disclosed.

Analysts said China Telecom's explorations outside the traditional telecom industry indicate that there is heavy reform pressure from the top.

Earlier this year, Ministry of Industry and Information Technology chief Miao Wei urged the Big Three telecom operators to speed up reforms to power growth in the information technology segment.

The move was a part of a central government attempt to revive the flagging economy. Oversight of equity structure reforms should be put in place, industry insiders suggested.

"Super-large SEOs should be able to build a company fit for market competition," said Zhang Wenkui, an analyst with the Development Research Center under the State Council. "That is the driving reason for equity structure reforms.

"Introducing private capital shouldn't be a means to erode State-owned assets," he added. "Rather, it is an attempt to strengthen the competiveness of State assets."