technologies in anticipation of 4G licensing in 2015 according to NCC’s announcement. By year-end 2011, we have more than 8,400 3G base stations, including around 2,000 base stations equipped with HSPA+ capability, and more than 20,000 Wi- Fi access points, which will increase to 30,000 by the end of 2012 . Throughout 2011, we continued to increase FTTx network coverage. For 50Mbps and 100 Mbps FTTx service, the household coverage rates had reached 76% and 15% respectively by the end of 2011 and will be enhanced to 80% and 45% respectively by the end of 2012. This transformation to a next generation optical network will enable us to provide customers with higher speed broadband packages and the latest digital services such as mobile broadband, MOD/ IPTV and state-of-the-art enterprise solutions, expanding the limits of possibility for our customers and building a long-term pathway for future growth for Chunghwa Telecom. 

## New Initiatives to Meet Diversified Customer Needs 

With our industry leading position and already robust digital based service offerings, we are well positioned to meet the needs of our customers in this evolving environment. Our key new initiatives in place to capitalize on these industry wide trends include our convergence services, corporate ICT services and cloud computing services. 

Our convergence services are supported by our integrated fixed-line and mobile broadband platform to provide enhanced services to meet customer demand. Our emphasis is on delivering a “multi-screen, one cloud” cross platform offering allowing access to content through multiple platforms including television, internet, smartphones and tablet PCs. We intend to leverage these capabilities in the coming year for the 2012 London Olympics, for which we have already secured exclusive broadcasting rights for New Media in Taiwan. As a result, our customers will be able to access Olympic coverage and content through a variety of platforms, whether via MOD on television, through HiNet for internet users and via mobile internet for smartphone and tablet users. We believe this will be a key driver for our broadband business and a highlight of our convergence services. 

In term of our corporate ICT services, we continued to gain momentum in 2011 and laid the foundation for the continued expansion of this segment. Our ICT services include iEN (Intelligent Energy Networks), ITS (Intelligent Transportation System), PBX (private branch exchange), call centers, IDC (internet data centers) and information security. One area of particular success has been our collaboration with real estate services companies, whereby we have provided IT solutions for new development projects. This has been a successful endeavor, creating value for all the parties involved, and we intend to expand collaborative relationships with enterprises in varying industries in the future. 

Finally, Cloud Computing remains one of our key new business initiatives, as it is expected to be one of the main long-term growth platforms for telecom operators in the coming years. We made advances in this segment throughout 2011 which we believe will position us to lead over the long-term. We continue to cooperate with the government network communication entities and independent software vendors to promote innovative cloud services and applications. We have already begun to offer IaaS (Infrastructure as a Service), SaaS CRM, hicloud CaaS/StaaS and cloud Antivirus/ Anti-hacker services, cloudbox services and hicloud Apps mall to service SME and public users. Since ROC government is now promoting six emerging industries in Taiwan, we would like to seize the business opportunity and develop relevant could applications. In the first half of 2012, we will cooperate with relevant partners to offer personal, storage and enterprise could services. Underpinning the rollout of our cloud computing services is our strength and experience in offering datacenter services to enterprise customers, including our ongoing initiative to build the largest cloud computing data center in Taiwan in anticipation of growing demand for this service. We believe the strength and reliability of our technology and services provide us with competitive advantages that will allow us to continue expanding our cloud computing services in the coming years. 

## Driving Customer Satisfaction through Quality Services 

The rapidly increasing access and capacity that we have been implementing over the past few years will provide our customers with truly innovative services and an improved user experience. Continued enhancement in our infrastructure, services and content will provide new opportunities for the Company to further satisfy our customers. To improve the quality of service, we established a brand new spectrum of service channels. In these new channels, customers could self-experience all of our services such as wireless data services and IPTV services. We added 20 service channels in 2011 and expect to increase 120 more in 2012. 

