PART I International fixed communications  Our international fixed communications revenues decreased by 4.3% from NT$15.9 billion in 2008 to  NT$15.2 billion in 2009. This decrease was mainly due to the decrease in revenues from international long  distance telephone calls as a result of the adverse economic conditions, which offset increases in revenues from  international leased line services and international data services.  International long distance telephone services.  Our international long distance telephone revenues  decreased by 8.0% from NT$14.0 billion in 2008 to NT$12.9 billion in 2009. Revenues from our international  long distance telephone service decreased in 2009 primary due to a 16.1% decrease in international direct dialing  revenues as a result of more customers using VoIP and other cost-saving services in place of international direct  dialing calls. Despite a 12% increase in wholesale international long distance business from 2008 to 2009, overall  international long distance revenues still decreased by 8.0%. This decrease was mainly due to (i) an overall  decrease in international direct dial services due to the deteriorating global economy and (ii) competition from  other service providers in the market for prepaid phone cards targeted towards foreign workers which caused a  reduction in unit price by 14.8%. Our international settlement revenues decreased by 5.4% from NT$3.7 billion  in 2008 to NT$3.5 billion in 2009. This decrease was primarily due to the 4.3% decrease in incoming traffic  volume.  Our operating costs and expenses decreased by 0.8% from NT$143.1 billion in 2008 to NT$142.0 billion in  2009. This decrease was primarily due to decreases in operating costs and marketing expenses. As a percentage  of revenues, operating costs and expenses increased from 71.0% in 2008 to 71.5% in 2009.  Operating costs include personnel expenses, international settlement costs, spectrum usage and license fees,  costs of materials and maintenance and interconnection fees among mobile operators.  Our operating costs decreased by 0.7% from NT$113.5 billion in 2008 to NT$112.7 billion in 2009. This  decrease was principally a result of a decrease of NT$1.8 billion related to depreciation and amortization and a  NT$0.6 billion decrease in taxes, partially offset by a NT$2.0 billion increase in ICT costs, MOD related costs  and government service costs due to the increase in revenue.  Our marketing expenses, which include personnel expenses, provisions for bad debt and expenses relating  to advertising and other marketing-related activities, decreased by 1.9% from NT$22.7 billion in 2008 to  NT$22.3 billion in 2009. This decrease was principally a result of a NT$0.3 billion decrease in promotional  expenses.  Our general and administrative expenses increased by 2.3% from NT$3.7 billion in 2008 to NT$3.8 billion  in 2009. This increase was principally a result of a NT$0.1 billion increase due to the consolidation of our  subsidiaries.  Our research and development expenses remained flat at NT$3.2 billion between 2008 and 2009. Our  research and development expenses increased as a percentage of our revenues from 1.56% in 2008 to 1.60% in  2009. This increase was principally a result of a NT$0.1 billion increase in personnel expenses.  Research and development  General and administrative  Marketing  Operating Costs  Operating Costs and Expenses  80