PART I 44 Paging Network  As of December 31, 2008 2009 2010 3G system 3G base stations 5,689  6,243  6,879  Servers / gateways 8/11  8/15  8/16  Lines of capacity (in thousands) 3,000  3,000  3,450  Taiwan population coverage 91.0% 93.1% 94.5% System (Home Location Register) capacity (in thousands)...... 4,800  5,400  7,200  As of December 31, 2010 Packet-switched system after consolidation of GSM and 3G GPRS gateway support nodes 14 Direct IP access locations / capacity (in Gbps) 10/46.6 Serving support nodes 12 We provide mobile services based on the GSM network standards. We have the 900 MHz and 1800 MHz  frequency bands paired with spectrums of 15 MHz and 11.25 MHz, respectively, for our GSM services. We  began providing mobile communications services based on the GPRS network standards in August 2001, using  “emome” as the portal name. We completed a system expansion of our mobile services network to accommodate  more than 8.5 million customers, including 2.0 million GPRS customers, at the end of 2003. As of December 31,  2010, we have constructed 9,336 base stations, providing up to 99.9% population coverage. Since the launch of  our 3G mobile services, we have gradually transitioned GSM subscribers to 3G and have started to consolidate  our GSM network. As a result, the number of switches and network capacity has reduced to 44 and 6.5 million  lines, respectively, as of the end of 2010.  We have installed an intelligent network on our mobile services network infrastructure to enable us to  provide prepaid services as well as a wide range of advanced call features and value-added services. As of the  end of 2010, our intelligent network has 1.4 million prepaid customers and 1.2 million mobile virtual private  network customers.  We have 15 MHz paired spectrum plus 5 MHz unpaired spectrum in the 2 GHz frequency band for our 3G  mobile services, which was launched in July 2005. We contracted Nokia Siemens Networks to provide the core  network, radio access network, service network, transmission network and maintenance network for our 3G  network. To promote mobile internet use, we upgraded our network to 3.5G in September 2006, with downlink  and uplink speeds of 7.2 Mbps and 2.0 Mbps, respectively. To meet the high growth in mobile data traffic, we  have upgraded our existing High-Speed Packet Access (HSPA with capability of 14.4Mbps and 5.76Mbps each  for Down-link and Up-link) Network to HSPA+ (with capability of 21.6Mbps and 11.5Mbps each for Down-link  and Up-link). As of December 31, 2010, we have completed the construction of 6,879 3G base stations with a  network capacity of 3.45 million lines and 7.2 million subscribers.  In order to operate our packet-switched network more efficiently, we have consolidated GSM and 3G  serving GPRS support nodes (SGSN) into a single core network. We have also introduced the Direct Tunnel  technology to flatten the packet-switched network to enhance the user’s experience. With the introduction of high  speed networks and terminals to promote our mobile internet business, we added direct local IP access to eight  locations and expanded the capacity to 46.6 Gbps as of the end of 2010.  The primary components of our paging network are:  •  paging control systems, which receive and encode incoming messages; and  •  base stations, which transmit messages to the customer’s pager. 