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Rental fees for local leased lines are generally based on transmission speed while domestic long distance leased line rental fees are generally based on transmission speed and distance. 

We continue to experience a decline in rental fees for all of our leased line products. The decline in rental fees since 2000 has been substantial partly as a result of broadband services substitution and other service providers constructing their own lines. In response, we continue to implement marketing and service campaigns to retain our high-value corporate customers. 

We launched our wireless local area network service in May 2002. As of December 31, 2010, we had a total of approximately 63,577 residential and business customers that lease our access points. In addition, we have established 10,146 hot spots in public areas, such as convenience stores, airports and international convention centers, where individuals can access our wireless local area network. 

## Multimedia on Demand Services 

We launched our multimedia-on-demand, or MOD, service in Taipei County and Keelung City in March 2004. As of December 31, 2010, we have expanded this service to all 18 counties and cities of Taiwan. Using video streaming technology through a set top box that connects to our FTTx and ADSL data connections, our customers can access TV programs and other services. We had over 126 broadcasting channels and over 8,000 hours worth of on-demand programs and served approximately 0.8 million customers as of December 31, 2010. In addition, our video-on-demand service provides movies, dramas, animations, documentaries, e-learning and music programs for home entertainment. Also, we currently offer 16 high definition, or HD, channels and other HD video-on-demand programming, such as sports, movies and knowledge materials. We offered “family package” channels in 2010 to enhance our service content and satisfy our customers’ needs. MOD revenues accounted for NT$0.6 billion, NT$0.9 billion and NT$1.1 billion (US$37.5 million) in 2008, 2009 and 2010, respectively. 

## Domestic Other Services 

Our domestic other services include information and communication technology services, corporate solution and bill handling services. 

## Mobile Communications Business 

Mobile communications services are one of our principal business activities. Our mobile communications services include mobile and paging services, sales of mobile handsets and data cards and mobile other services. 

## Mobile Services 

We are Taiwan’s largest provider of mobile services in terms of both revenues and customers. In 2008, we generated revenues of NT$72.4 billion, or 35.9% of our total revenues, from mobile services. In 2009, we generated revenues of NT$71.4 billion, or 35.9% of our total revenues, from mobile services. In 2010, we generated revenues of NT$73.1 billion (US$2.5 billion), or 36.1% of our total revenues, from mobile services. 

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