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## General and administrative 

Our general and administrative expenses increased by 6.6% from NT$3.8 billion in 2009 to NT$4.0 billion in 2010. This increase was principally a result of a NT$0.1 billion increase due to the consolidation of our subsidiaries previously accounted for under the equity method, and a NT$0.1 billion increase in bonus. 

## Research and development 

Our research and development expenses remained flat at NT$3.2 billion in 2009 and 2010. 

## Operating Costs and Expenses by Business Segment 

<img src='content_image/222998.jpg'>

## Domestic fixed communications 

Our domestic fixed communications costs and expenses decreased by 0.9% from NT$67.6 billion in 2009 to NT$67.0 billion in 2010, primarily due to a NT$2.1 billion decrease in depreciation and amortization expenses reflecting a slowdown in capital expenditures, partially offset by a NT$0.9 billion increase in corporate solution services and ICT costs and a NT$0.8 billion increase in bonus. 

## Mobile communications 

Our mobile communications operating costs and expenses increased by 6.6% from NT$58.3 billion in 2009 to NT$62.1 billion in 2010. This increase was primarily due to an increase of NT$2.4 billion in cost of handsets sold, and an NT$1.0 billion increase in leased line and internet access expenses. 

## Internet 

Our internet operating costs and expenses increased by 4.5% from NT$15.1 billion in 2009 to NT$15.8 billion in 2010. This increase was primarily due to a NT$0.4 billion increase in leased line expenses. 

## International fixed communications 

Our international fixed communications costs and expenses increased by 1.9% from NT$14.2 billion in 2009 to NT$14.5 billion in 2010. The increase was primarily due to an increase of NT$0.1 billion in equipment rental expense and an increase of NT$0.1 billion in corporate solution services and ICT costs. 

## Others 

The costs and expenses from our other business increased by 31.7% from NT$4.6 billion in 2009 to NT$6.1 billion in 2010. The increase was primarily due to the consolidation of our subsidiaries. 

