• international fixed communications services, including international long distance telephone services, international leased line services, international data services, satellite services and international other services; and 

• other services, including non-telecom services. 

In addition to these traditional telecommunication services, we also focus on selected Information and Communication Technology (ICT) service and advanced development, such as cloud computing. 

For each of our key services, we enjoy leading positions across a number of areas: 

• we are Taiwan’s largest provider of domestic fixed communications services in terms of both revenues and customers; 

• we are Taiwan’s largest mobile communications service provider in terms of both revenues and customers; 

• we are Taiwan’s largest broadband internet access provider as well as Taiwan’s largest internet service provider in terms of both revenues and customers; and 

• we are also a leading player in the data communications market in Taiwan. 

In 2010, our revenues under R.O.C. GAAP were NT$202.4 billion (US$6.9 billion), our consolidated net income was NT$48.6 billion (US$1.7 billion) and our basic earnings per share was NT$4.91 (US$0.17). 

In 2010, we made capital expenditures totaling NT$24.6 billion (US$0.8 billion), of which 58% was related to our domestic fixed communications business, 21% was related to our mobile communications business, 8% was related to our internet business, 7% was related to our international fixed communications business and 6% was related to our other businesses. See “Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Capital Expenditures” for a discussion of our capital expenditures. 

## Competitive Strengths 

We believe that we are well positioned to take advantage of growth opportunities in the telecommunications market in Taiwan as new technologies evolve. In particular, we have maintained our leading market share in mobile communications and internet services since the opening of the Taiwan telecommunications market to competition in June 2001. Furthermore, we have enjoyed greater flexibility in making purchasing and other business decisions after we were privatized in August 2005. 

We believe that further deregulation and market liberalization will continue to drive the growth of the overall market for telecommunications services in Taiwan, as well as the development of new products and services. We expect to benefit from additional opportunities as the telecommunications market in Taiwan continues to grow. 

We believe that our primary competitive strengths are: 

• our broad customer base in Taiwan; 

• our position as an integrated, full-service telecommunications provider in Taiwan; and 

• our capital resources and technology, which we believe we can build on to expand our leading position in the mobile communications and internet services markets, including through our continued construction of our existing 3G/HSPA/HSPA+ mobile network, our expansion of FTTx broadband access services, IP-based MOD services, fixed/mobile value added and cloud computing related services, and our future construction of a fourth generation long term evolution mobile network if we win the technology neutral license in 2015. 

