China Telecom (CHA.NYSE, 0728.HK) announced today that second-quarter profits increased 12% year-on-year in the quarter ended June 30, largely based on a 50% increase in mobile phone subscribers, Bloomberg reported. China Telecom operates the country’s largest fixed-line telephone network and its third-largest mobile phone network behind China Mobile (CHL.NYSE, 0941.HK) and China Unicom (CHU.NYSE, 0762.HK). Profits for the second quarter were US$796 million, in line with analyst estimates of US$790 million. The company added 8.12 million users to its mobile phone user base in the second quarter, for a total subscriber base of 108.4 million. China Telecom has successfully managed to attract users by offering a selection of handsets produced by international brand names like Samsung (005930.SEO) and Motorola (MSI.NYSE) that are compatible with its international CDMA cellular protocol. The company may form an agreement with Apple (AAPL.NASDAQ) to offer CDMA iPhone’s by the end of the year.