In 2011, we made capital expenditures totaling NT$26.9 billion (US$0.9 billion), of which 62 % was related to our domestic  fixed communications business, 16% was related to our mobile communications business, 14% was related to our internet business,  6% was related to our international fixed communications business and 2% 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.  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 1996. 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:  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 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  19 Competitive Strengths  ●  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.  P AR T I We have a broad customer base in Taiwan.  We are an integrated full-service telecommunications provider in Taiwan. 