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We provide so-called “intelligent” network services over our domestic long distance network, including toll-free calling, personal number, televoting, premium rate service and VPNs. We also focus on offering our customers an increasing number of value-added services and flexible tariff packages. 

## Broadband (ADSL+ and FTTx) Access 

We provide broadband internet access through connections based on ADSL and our FTTx technology. FTTx generally offers a faster access medium for our internet customers compared to ADSL by using fiber optic technology. We are continuing the build- out of our FTTx infrastructure. The majority of our FTTx deployments consist of fiber-to-the-node with some fiber-to-the-building deployments. The majority of the local loops still use copper wires, and we do not have any present plans to upgrade the local loops to fiber optic lines. Because we typically realize higher average revenue per user for our FTTx internet services, we are offering various incentives for our ADSL and other internet customers to switch to our FTTx services. 

We provide broadband access services to other internet service providers that do not have their own network infrastructure, and as a result, our broadband customers also include some customers that use us only for the broadband data access line and choose another provider for ISP services. We began providing our ADSL service in August 1999 and had approximately 2.1 million customers as of December 31, 2011. Our ADSL service allows for transmission of data at high access rates and offers high-speed broadband internet access services. As of December 31, 2011, approximately 74.2 %, or 1.6 million, of our ADSL customers were also our HiNet subscribers. As a result of increased migration to our higher-bandwidth FTTx services, the number of our ADSL customers declined in 2010 and 2011. 

The following table sets forth our revenues from our broadband access services for the periods indicated. 

<img src='content_image/246631.jpg'>

We provide FTTx internet services, with downlink speeds of 10, 20, 50 and 100 Mbps, in 2011. The number of our FTTx customers increased significantly in 2009, 2010 and 2011 as prices became more affordable, coverage areas expanded and customer demand for higher bandwidth heightened. Many of new FTTx customers have migrated from using our ADSL internet services. We also provide FTTx access services to other internet service providers that do not have their own network infrastructure, and as a result, our FTTx customers also include some customers that only use us for the FTTx data access line and choose another ISP to provide internet services. Of the approximately 2.40 million FTTx customers as of December 31, 2011, approximately 2.13 million were also our HiNet subscribers. We currently offer various promotional packages to encourage more migration of our ADSL subscribers to our FTTx service. As of December 31, 2011, 51.0% of HiNet subscribers accessed the internet through our FTTx service, and we expect this ratio to increase in the future as a result of these promotional measures. 

Our market share of Taiwan’s broadband market was approximately 83.0%, 80.5% and 79.2% in 2009, 2010 and 2011, respectively. 

The following table sets forth our broadband service customers as of each of the dates indicated. 

<img src='content_image/246632.jpg'>

