P AR T I 11 The Taiwan telecommunications industry has been characterized by rapid increases in the diversity and sophistication  of the technologies and services offered. As a result, we expect that we will need to constantly upgrade our telecommunications  technologies and services in order to respond to competitive industry conditions and customer requirements. Developments of new  technologies have rendered some less advanced technologies unpopular or obsolete. If we fail to develop, or obtain timely access to,  new technologies and equipment, or if we fail to obtain the necessary licenses to provide services using these new technologies, we  may lose our customers and market share and become less profitable.  In addition, the cost of implementing new technologies, upgrading our networks or expanding capacity could be significant.  In particular, we have made and will continue to make substantial capital expenditures in the near future in order for us to effectively  respond to technological changes, such as the continued expansion of our fiber optic networks and High Speed Packet Access, or  HSPA, and HSPA+ mobile network. Furthermore, the 4G licenses are scheduled to be awarded before June 2015. We expect to  devote additional capital expenditure to the network building for Long Term Evolution, or LTE, network. In addition, to meet the  increasingly robust high-bandwidth requirements of digital convergence services, we will expand construction of fiber optic networks,  including passive optical networks, or PONs and optical distribution networks, or ODNs. To the extent these expenditures exceed our  cash resources, we will be required to seek additional debt or equity financing. Our ability to obtain additional financing on favorable  commercial terms will depend on a number of factors. These factors include our financial condition, results of operations, cash  flows and the prevailing market conditions in the Taiwan and international telecommunications industry, the cost of financing and  conditions in the financial markets, and the issuance of relevant government and other regulatory approvals. Any inability to obtain  funding for our capital expenditures on commercially acceptable terms could jeopardize our expansion plans and materially and  adversely affect our business prospects and future results of operations.  Taiwan is susceptible to earthquakes and typhoons. However, we do not carry any insurance to cover damages caused by  earthquakes, typhoons or other natural disasters or any resulting business interruption. Our services are currently carried through  our fixed and mobile communications networks, as well as through our transmission networks consisting of optical fiber cable,  microwave, submarine cable and satellite transmission links, which could be vulnerable to damage or interruptions in operations due  to natural disasters. For example, in 2011, losses on property, plant and equipment arising from natural disasters such as earthquakes  and typhoons were approximately NT$1.0 million (US$0.03 million) as recorded in non-operating expenses under R.O.C GAAP. The  occurrence of any natural disasters could impact our ability to deliver services and have a negative effect on our results of operations.  We are always evaluating new growth opportunities in the broader telecommunications industry and are expecting to be  transformed into an Information and Communications Technology, or ICT, service provider. Some of these opportunities involve new  services for which there are no proven markets, and may not develop as expected. Our ability to deploy and deliver these services will  depend, in many instances, on new and unproven technologies. These new technologies may not perform as expected or generate an  acceptable rate of return. In addition, we may not be able to successfully develop new technologies to effectively and economically  deliver these services, or be able to compete successfully in the delivery of telecommunications services based on new technologies.  Furthermore, the success of our mobile data services is substantially dependent on the availability of mobile data applications  and devices that are being developed by third-party developers. These applications or devices may not be sufficiently developed  to support the deployment of our mobile data services. If we are unable to deliver commercially viable services based on the new  If new technologies adopted by us do not perform as expected, or if we are unable to effectively deliver new services based on these  technologies in a commercially viable manner, our revenue growth and profitability will decline.  Our ability to deliver services may be disrupted due to a systems failure, shutdown in our networks, earthquakes or other natural  disasters.  Changes in technology may render our current technologies obsolete or require us to obtain licenses for introducing new services  or make substantial capital investments, financing for which may not be available to us on favorable commercial terms or at all. 