## • New Initiatives 

Individual consumers and businesses alike are evolving the way that they interact with one another: communications are increasingly real-time and on-line, where data security and reliability is crucial. At Chunghwa Telecom, we are responding to the evolution in communications by broadening our offering to include new initiatives that include corporate ICT services, cloud computing and convergence services. 

Our corporate ICT services are focused in following areas, all of which performed very well in 2010: iEN (Intelligent Energy Networks), ITS (Intelligent Transportation System), PBX (private branch exchange), call centers, IDC (internet data centers) and information security. Corporate customers turn to Chunghwa for their technical expertise in these initiatives, and enlist our help in their initiatives to protect their data, improve productivity and service levels and reduce their environmental impact. 

Cloud computing may have been a buzz word in 2010, but it is certainly not a passing fad. Dr. Lu is proud to be the President of the Cloud Computing Association in Taiwan, which has 100 corporate members, all striving to promote cloud computing services and to enable Taiwan companies to be cloud computing solution providers. We are constructing the largest cloud computing data center in Taiwan in anticipation of growing need for this service, and we already have signed on several hundred SME (small and medium sized enterprises) companies. For CHT, our emphasis is always on exceptional service and our customers are turning to us because our offering is easy to use, does not require a large resource commitment up front, and is extremely scalable. 

As an integrated telecommunications operator, convergence services are a natural extension for Chunghwa Telecom. We have all of the necessary ingredients for a converged service offering, and are able to package them in a way that meets customer demands for cross-platform services. For example, during the 2010 FIFA World Cup in South Africa, we were able to show the action through MOD on television screens, through HiNet for internet users, and also through mobile internet for smartphone users. We have also packaged our music service through a collaboration with KKBOX, and offer a service called hifree on our MOD, mobile and the internet platforms. Further increasing our convergence capability, we have launched a system that will allow our customers to access our MOD, mobile and HiNet platforms using a single sign-on entry point. As another example, the Disney Channel can be accessed via cross platforms on MOD, hichannel and Hami. It is these types of seamless convergence services for our customers that will be a key area of focus for our engineers and development team moving forward. 

## • Geographic Expansion 

2010 brought encouraging developments for our international and cross-strait initiatives. We have worked hard to foster our relationships in mainland China and outside of Taiwan. Our joint venture with Viettel to establish the largest IDC company in Vietnam marked our first overseas endeavor. Replicating our deep experience with call center services, we started a joint venture 

