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Note 36 to our audited consolidated financial statements included elsewhere in this annual report provides a description of the significant difference between R.O.C. GAAP and U.S. GAAP as they related to us and a reconciliation of net income and stockholders’ equity. 

## C. Research, Development, Patents and Licenses, Etc. 

## Research and Development 

Our research and development efforts are focused on the development of advanced network services and operation technologies as well as the development of core technologies for the domestic telecommunications market. For 2008, 2009 and 2010, our research and development expenses were approximately NT$3.2 billion, NT$3.2 billion and NT$3.2 billion (US$111.5 million), respectively, or approximately 1.6%, 1.6% and 1.6% of our revenues, respectively. 

As of March 31, 2011, we have more than 2,128 researchers focusing on the following areas: 

• wireless communication; 

• broadband transmission and access; 

• internet and multimedia applications; 

• network operation support; 

• customer service information; 

• Information and communication security; 

• advanced technologies research; and 

