PART I Local Telephone  The following table sets forth our revenues from local telephone services for the periods indicated.  We provide local telephone services to approximately 12.31 million customers in Taiwan. Our fixed line  network reaches virtually all homes and businesses in Taiwan. Revenues from local telephone services comprised  17.1%. 16.7% and 15.9% of our total revenues in 2008, 2009 and 2010, respectively. Approximately 74.5% of  our local telephone customers as of December 31, 2010 were residential customers, accounting for 59.5% of  our local telephone revenues in 2010. We are currently the leader of the local telephone service market, with an  average market share of approximately 97.3%, 97.1% and 96.9% in 2008, 2009 and 2010, respectively.  The following table sets forth information with respect to our local telephone customers and penetration  rates as of the dates indicated.  Demand for local customer lines has historically been driven by population growth. However, with the  development of mobile technologies, this trend has been declining. The number of fixed line customers decreased  by 2.2% in 2009 compared to 2008 due to customers replacing fixed lines with mobile services and also as  a result of the adverse economic conditions. The number of fixed line customers decreased by 1.1% in 2010  compared to 2009. We attribute the decrease in fixed line customers to a general industry-wide trend of migrating  from fixed line services to mobile and Internet telephony services.  (1) Data from the Department of Population, Ministry of the Interior, Republic of China.  As of December 31,  2008  2009  2010  (in thousands, except percentages  and per household data) Taiwan population  (1) 23,037  23,120  23,162  Fixed line customers: Residential 9,530  9,328  9,165  Business 3,203  3,120  3,142  Total 12,733  12,448  12,307  Growth rate (compared to the same period in the prior year) (1.7)% (2.2)% (1.1)% Penetration rate (as a percentage of the population) 55.3% 53.8% 53.1% Lines in service per household 1.24  1.19  1.15  Year ended December 31, 2008 2009 2010 NT$ NT$ NT$ US$ (in billions) (in millions) Local telephone revenues: Usage 11.5  10.6  10.0  341.9  Subscription 17.7  17.2  17.0  584.4  Interconnection 2.5  2.5  2.4  81.7  Pay telephone 0.7  0.6  0.5  17.9  Other 2.2  2.3  2.9  99.0  Total 34.6  33.2  32.3   1,107.0  25