PART I The following table sets forth information with respect to the average international long distance usage  charge per minute that we received for outgoing international calls during the periods indicated:  Tariffs for international long distance calls have generally been declining worldwide and we expect this  trend to continue. We offered our customers significant promotional packages and discounts during off-peak  hours in 2008, 2009 and 2010 to maintain their loyalty. In particular, we increased the discounts offered to our  high-usage international long distance customers in each of these three years. However, we anticipate that an  increase in the international call traffic may partially offset the decline in tariffs.  We pay for the use of networks of carriers in foreign destinations for outgoing international calls and receive  payments from foreign carriers for the use of our network for incoming international calls. Traditionally, these  payments have been made pursuant to settlement arrangements under the general auspices of the International  Telecommunications Union. Settlement payments are generally denominated in U.S. dollars and are made on a  net basis.  The following table sets forth information with respect to our gross international settlement receipts and  payments during the periods indicated.  Our payments on an aggregate basis to international carriers have been more than our receipts from these  carriers primarily because our customers’ outgoing minutes exceeded incoming minutes.  In order to compete more effectively in the international long distance market, we have implemented  innovative and customized discount calling plans and marketing campaigns directed at high-usage business  customers. We also continue to promote our intelligent network services, including international VPNs,  international toll free calling and calling card services, and our international long distance minutes wholesale  business. Our subsidiary, Chief Telecom, launched its 070 phone-to-phone VoIP service in April 2009. When  demand for 070 VoIP service grows, we will bundle Chief Telecom’s 070 VoIP service with other services we  provide to meet customers’ needs. We currently do not have any plans to launch 070 VoIP service because the  National Communications Commission has not given us the right to set the tariffs for outbound calls from 070  numbers.  We are a leading provider of international leased line services in Taiwan. Leased line services involve  offering exclusive lines that allow point-to-point connection for voice and data traffic. Leased lines are used  by business customers to assemble their own private networks and by telecommunications service providers to  establish networks to offer telecommunications services.  We provide data transmission services to major corporate customers in Taiwan. Since August 2001, licenses  have been awarded to four undersea cable operators to engage in leased line services. Demand for high-speed  data transmission services has been growing rapidly, as a result of growing consumer demand and lower tariffs  due to increased competition. In particular, the total bandwidth of our lines leased increased by 79.8% in 2010.  The following table shows the bandwidth of international lines leased to third parties as of each of the dates  indicated.  Leased Line Services—International  37 Year ended December 31, 2008 2009 2010 2010 NT$ NT$ NT$ US$ (in billions) (in millions) Gross international settlement receipts 3.7  3.5  3.2  109.1  Gross international settlement payments 4.1  4.3  4.2  143.9  Year ended December 31, 2008 2009 2010 Average international long distance usage charge (per minute) NT$ 4.2  NT$ 3.6  NT$ 3.4  Growth rate (compared to the same period in the prior year) (6.7)% (15.0)% (3.9)%