## We have a broad customer base in Taiwan. 

We are the largest telecommunications service provider in Taiwan with a broad customer base across all of our service offerings. Despite deregulation and an increase in competition in the Taiwanese telecommunications industry, we have maintained a market leading position in our primary service offerings of fixed communications, mobile communications and internet services. We believe our broad customer base in each of our service offerings grants us a distinct competitive advantage to maintain our existing customers and attract new customers and increases the chance of success for the launch and popularization of new products. As the telecommunications industry continues its trend of converging fixed communications, mobile communications and internet services, we believe that our comprehensive service offerings places us in a strong position to offer converged products and services to our customers. 

## We are an integrated full-service telecommunications provider in Taiwan. 

We are the largest telecommunications service provider in Taiwan with a leading position in fixed communications services, mobile communications services and internet services. 

Broad range of communications products and services . We believe that our ability to provide an attractive and comprehensive range of telecommunications services positions us to provide bundled and value-added services to our business and residential customers. In addition, we are able to offer innovative integrated services and tariff packages to meet the specific needs of our customers. 

Broad network coverage . The breadth of our network and our ownership of the so called “last mile” infrastructure in Taiwan, which comprises the connection between the local telephone service provider’s switching centers to the end-users’ buildings or homes, provide us with access to existing and potential customers and creates a platform for expanding our services. As of December 31, 2010, substantially all of our installed telephone lines were capable of delivering ADSL services and network coverage of ADSL was approximately 97%. In order to provide higher bandwidth services for our customers, we are constructing our FTTx network. As of December 31, 2010, network coverage of FTTx with speed of 30Mbps was approximately 79.3%. In addition, our mobile communications network provides nationwide coverage. Our large cellular spectrum allocation together with our network of 16,215 base stations position us well for the continued expansion of our mobile services in Taiwan. 

Brand awareness, distribution channels and customer service . Our principal brands “Chunghwa Telecom” and “HiNet” have a reputation for quality, reliability and sophisticated technology. In particular, we are the leading internet service provider in Taiwan through HiNet. We serve our large and well-established customer base through our extensive customer service network in Taiwan, including 23 operations offices, 313 service centers, 221 exclusive service stores and six customer service centers. We also offer comprehensive and high-quality point of sale and after sale services, and we provide web-based customer services. Moreover, our extensive sales and distribution channels help us attract additional customers and develop new business opportunities. In 2010, we obtained several domestic and international awards which recognized our service quality, corporate governance and corporate social responsibility. In the Reader’s Digest Trusted Brands Award, we have stood out and won the Platinum Award of Telecom Company in Taiwan for seven consecutive years since 2004. We were awarded “Best Managed Company,” “Best Corporate Governance, “Best Corporate Social Responsibility” and “Best Commitment to Strong Dividends” in Taiwan by FinanceAsia. We were also awarded the “Excellence in Corporate Social Responsibility Award” by the Common Wealth Magazine, “Excellent Service Award 2010” by Global Views, “Best Corporate Governance and Disclosure” in the Greater China Awards 2010 by IR Magazine, and “Excellence for Financial Disclosure Procedures” in Asia Pacific by IR Global Rankings. 

Operational expertise . Our management and employees have extensive operating experience and technical knowledge, which we believe cannot be easily replicated by competitors. We also believe we will continue to attract and retain high quality employees. 

Comprehensive customer billing infrastructure . As Taiwan’s leading telecommunications services provider, we have extensive resources and infrastructure relating to billing services. In particular, we issue, in the aggregate, approximately 17 million invoices, including integrated bills, every month. We intend to continue taking advantage of this unique attribute by offering bill collection services to internet content providers and other entities that lack the necessary resources and infrastructure for effective customer billing. 

