PART I •  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.  •  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.  •  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.  17 We believe that our primary competitive strengths are:  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 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.  Competitive Strengths  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.  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 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: 