PART I Our primary competitors in leased line services and broadband services include:  There are currently three major GSM mobile operators in Taiwan, namely, Taiwan Mobile Co., Ltd.,  FarEasTone Telecommunications Co., Ltd. and us. Based on data provided by the National Communications  Commission, as of December 31, 2010, we were the largest mobile operator in Taiwan, with a 51.9% market  share in terms of 2G customers. In addition, there are two new 3G mobile operators in Taiwan, namely Asia  Pacific Telecom Co., Ltd. and Vibo Telecom Inc., as well as one personal handyphone system operator, First  International Telecom. Furthermore, the government issued a total of 15 mobile virtual network operator, or  MVNO, licenses, which allow operators without a spectrum allocation to provide mobile services by leasing  the capacity and facilities of a mobile service network from a licensed mobile service provider. We are currently  cooperating with Carrefour Telecom Co., Ltd. We may cooperate with other mobile virtual network operators in  the future. As of the end of 2010, there were also six WiMAX service providers in Taiwan, providing services  to approximately 55,000 customers in total according to the data provided by the National Communications  Commission. We compete in the wireless services market primarily on the basis of price, quality of service,  network reliability and attractiveness of service packages.  Our primary competitors in internet services are other internet services providers, including SeedNet, Asia  Pacific Online.  We are the largest provider of internet services in Taiwan. As of December 31, 2010, we had a 69.6% share  of the Taiwanese internet service market in terms of customers. We compete in the internet services market  primarily on the basis of price, technology, speed of transmission, amount of bandwidth available for use,  network coverage and value-added services.  We are the largest international fixed communications service provider in Taiwan, with a market share of  approximately 58.4% in terms of traffic for international long distance telephone services in 2010. Three new  providers, namely, Taiwan Fixed Network, New Century Infocomm Tech. Co., Ltd. and Asia Pacific Telecom  Co. Ltd., have provided fixed line services since June 2001. We believe these operators are primarily focused  on international long distance services. In addition, we anticipate that these operators will focus on corporate  customers, which typically generate higher profit margins than residential customers. Since August 2001, four  undersea cable services licenses have been granted. These undersea cable operators, as well as internet service  providers and international simple resale operators, have begun offering international leased line services to other  fixed line operators, internet service providers and international simple resale operators.  Our international long distance services compete with international long distance resale services and  alternative mediums for making international calls, including VoIP technologies, such as those provided by  Skype.  46 •  Leased line service providers: Taiwan Fixed Network, New Century Infocomm Tech. Co., Ltd., Asia  Pacific Telecom Co. Ltd., East Asia Netcom Taiwan, Reach Global Services Ltd., FLAG Telecom  and Taiwan International Gateway Corporation.  •  Broadband internet access providers: kbro Co., Ltd., Taiwan Fixed Network and New Century  Infocomm Tech. Co., Ltd., China Network System Co., Ltd.; and  •  Cable operators: kbro Co., Ltd., China Network Systems Co., Ltd., Taiwan Broadband  Communications Co., Ltd., Pacific Broadband Co., Ltd., and Taiwan Infrastructure Technology Co.,  Ltd.  Mobile Communications  Internet  International Fixed Communications 