PART I 67 •  the introduction of a IP-based exchange system in our long distance telephone network;  •  the implementation of a network modernization program, including a gradual transfer from our  public switched telephone network to a system based on internet protocol, to remain at the forefront  of new technologies;  Tariff adjustments  Capital expenditures as a result of technological improvements and changes in our business  Revenues from our mobile communications business made a major contribution to our revenues over the  last three years. While competition with other mobile service providers and the mandated tariff reduction by  NCC have caused a decline in revenues, we have experienced a significant increase in revenues generated by  our mobile value-added services due to increased smart phone and mobile internet use by our subscribers. As a  result, we believe that our mobile communications business will continue to generate a significant portion of our  revenues.  Our internet business was another important source of revenues over the last three years. We derived  internet business revenues from the provision of HiNet internet service and internet value-added services. The  percentage of revenues from internet services within total revenues increased in 2010 compared to 2009, mainly  due to the growth of our HiNet ISP service and internet VAS. We believe that internet business will continue to  generate a growing portion of our revenues.  Our international fixed communications business was also an important source of our revenues over the last  three years. We derived our international fixed communications revenues mainly from international long distance  telephone services, international leased line services and international data services. The revenues from our  international fixed communications business as a percentage of our total revenues remained constant from 2009  to 2010, primarily because the growth rate of international leased line and international data services was similar  to that of our total revenues. We believe that our international fixed communications business will continue to  contribute to our revenues.  We adjust our tariffs and offer promotional packages from time to time primarily in response to market  conditions. We also from time to time are required to adjust our pricing in line with domestic regulations.  The National Communications Commission passed a resolution on December 21, 2006 adopting a price  reduction plan requiring the continuous reduction in telecommunication tariffs over three years. Minimum  reductions of 4.88% for fixed line to mobile call tariffs, 4.88% for the tariffs of our highest monthly rate plan,  4.88% for mobile prepaid calling card tariffs and 5.35% for ADSL tariffs must be made each year. The price  reduction plan also required us to stop collecting a NT$5.0 monthly maintenance fee from our fixed line  customers who have paid at least 20 years worth of tariffs and those who chose self-maintenance customers  starting January 1, 2008 and a NT$70.0 fixed line basic charge from our ADSL customers who only use data  services. On January 29, 2010, the National Communications Commission announced a new tariff reduction  plan starting on April 1, 2010 to March 31, 2013. The percentage of decrease set by National Communications  Commission was  D CPI- 4.816% for IP Peering fees, domestic leased-line fees, ADSL access fees and long  distance tariffs, and  D CPI- 5.00% for fees for mobile calls to local fixed lines and other networks and domestic  mobile SMS, where  D CPI is the year-over-year change of the consumer price index of previous year released by  the Directorate-General of Budget, Accounting and Statistics of the Executive Yuan.  D CPI for 2009 that is used  for the tariff reduction starting from April 1, 2010 is -0.87% ;  D CPI for 2010 that is used for the tariff reduction  starting from April 1, 2011 is 0.96%.  We expect to continue to adjust tariffs and offer a variety of promotional packages from time to time in  response to increasing competition and in order to take advantage of our pricing power from economies of scale.  We may also be required to adjust our pricing due to changes in domestic regulations.  In recent years, we have focused on modernizing and upgrading our mobile services network and on  developing our FTTx network, which enables transmission of digital information at a high bandwidth over fiber  loops. In particular, we have enhanced our telecommunications services through: 