from NT$15.0 billion in 2009 to NT$15.9 billion in 2010. This increase was principally due to the strong sales of mobile smart phones and the general recovery of the economy in the R.O.C. 

## Internet 

Internet revenues comprised 11.9% and 12.1% of our revenues in 2009 and 2010, respectively. Our revenues attributable to our internet business increased by 3.5% from NT$23.7 billion in 2009 to NT$24.5 billion in 2010. The increase was mainly due to a 1.6% increase in the number of our total HiNet broadband subscribers from approximately 3.5 million as of December 31, 2009 to approximately 3.6 million as of December 31, 2010. Our HiNet subscribers remained at approximately 4.1 million subscribers as of December 31, 2009 and 2010 because the increase of our HiNet broadband subscribers was offset by the decrease of HiNet dial-up subscribers. As of December 31, 2010, approximately 82.0% of our broadband customers were also HiNet subscribers, using HiNet as their ISP. 

## International fixed communications 

Our international fixed communications revenues increased by 1.9% from NT$15.2 billion in 2009 to NT$15.5 billion in 2010. This increase was mainly due to the increase in revenues from our international leased line services and international data services. 

International long distance telephone services.  Our international long distance telephone revenues remained constant at NT$12.9 billion in 2009 and 2010 because the decrease of the unit price was offset by the growth in both the traffic volume of calls using calling cards and the wholesale of the traffic from 2009 to 2010. Our international settlement revenues decreased from NT$3.5 billion in 2009 to NT$3.2 billion in 2010. This decrease was primarily due to the appreciation of NT dollars. 

International leased line and international data services.  Our international leased line and international data revenues increased by 19.1% from NT$1.68 billion in 2009 to NT$2.00 billion in 2010. The increase was mainly because of the overseas market expansion and the increased demand of multinational corporations. 

## Operating Costs and Expenses 

Our operating costs and expenses increased by 2.2% from NT$142.0 billion in 2009 to NT$145.0 billion in 2010. This increase was primarily due to the increases in costs of handsets sold. As a percentage of revenues, operating costs and expenses increased from 71.5% in 2009 to 71.7% in 2010. 

## Operating Costs 

Operating costs include depreciation and amortization expense, personnel expenses, cost of goods sold, interconnection and service expense, costs of materials and maintenance and spectrum usage and license fees. 

Our operating costs increased by 2.3% from NT$112.7 billion in 2009 to NT$115.3 billion in 2010. This increase was principally a result of an increase of NT$3.0 billion in cost of goods sold, an increase of NT$1.2 billion in personnel expenses mainly due to increase in bonus expense because of net income growth, and a NT$0.6 billion increase in ICT costs due to the increase in revenue, partially offset by a decrease of NT$2.2 billion in depreciation. 

## Marketing 

Our marketing expenses, which include personnel expenses, expenses relating to advertising and marketing-related activities and provision for bad debt increased by 0.8% from NT$22.3 billion in 2009 to NT$22.5 billion in 2010. This increase was principally a result of a NT$0.5 billion increase in bonus, partially offset by a decrease of NT$0.3 billion in expenses relating to advertising and other marketing-related activities. 

