As a result of the foregoing, the segment income before tax for our domestic fixed communications business increased by 2.4% from NT$18.1 billion in 2010 to NT$18.5 billion (US$0.6 billion) in 2011; segment income before tax for our mobile communications business decreased by 5.1% from NT$29.3 billion in 2010 to NT$27.8 billion (US$0.9 billion) in 2011; segment income before tax for our internet business decreased by 2.8% from NT$9.8 billion in 2010 to NT$9.6 billion (US$0.3 billion) in 2011; segment income before tax for our international fixed communications business decreased by 23.1% from NT$2.7 billion in 2010 to NT$2.0 billion (US$0.1 million) in 2011; and segment loss for our others business segment decreased by 43.7% from NT$2.2 billion in 2010 to NT$1.2 billion (US$ 40.5 million) in 2011. 

## Other Income, Net 

Our other income, net increased by 402.8% from NT$0.3 billion in 2010 to NT$1.6 billion (US$53.3 million) in 2011. This increase was primarily due to a NT$0.5 billion (US$17.0 million) increase in net gain on disposal of property, plant and equipment, a NT$0.2 billion (US$7.0 million) increase in equity in earnings of equity method investees, a NT$0.3 billion (US$9.3 million) increase in net interest income, and a NT$0.2 billion (US$5.0 million) decrease in net loss on valuation and disposal of financial instruments. 

## Income Tax 

Our income tax was NT$9.1 billion in 2010, compared to NT$8.6 billion (US$0.3 billion) in 2011. Our effective tax rate was 15.8% in 2010 and 15.2% in 2011, primarily due to lower income from operations. Please refer to “Item 5. Operating and Financial Review and Prospects—Taxation” for a discussion of the change in tax rate. 

## Net Income 

As a result of the foregoing, our net income attributable to stockholders of the parent decreased by 1.1% from NT$47.6 billion in 2010 to NT$47.1 billion (US$1.6 billion) in 2011. Our net margin was 23.5% in 2010 and 21.6 % in 2011. 

## The year ended December 31, 2010 compared with the year ended December 31, 2009 

## Revenues 

Our revenues increased by 2.1% from NT$198.4 billion in 2009 to NT$202.4 billion in 2010. This increase was primarily due to increase in revenues generated from mobile communications, internet, international fixed communications and other business sectors. 

