Our ability to deliver services may be disrupted due to a systems failure, shutdown in our networks, earthquakes  or other natural disasters.  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.  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 2010, losses on property, plant and equipment arising from natural disasters such as earthquakes and typhoons  were approximately NT$19 million (US$0.7 million) as recorded in non-operating expenses under ROC 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 (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 wireless data services is substantially dependent on the availability  of wireless 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 wireless data services. If we  are unable to deliver commercially viable services based on the new technologies that we adopt, our financial  condition and results of operations may be materially and adversely affected.  We depend on the continued service of our executive officers and skilled technical and other personnel. Our  business could suffer if we lose the services of any of these personnel and cannot adequately replace them. In  particular, we are not insured against the loss of any of our personnel. Moreover, we may be required to increase  substantially the number of these employees in connection with any expansion, and there is intense competition  for experienced personnel in the Taiwan telecommunications industry. We may not be able to retain our present  personnel or attract additional qualified personnel as and when needed. In addition, we may need to increase  employee compensation levels in order to attract and retain personnel. We cannot assure you that the loss of the  services of any of these personnel would not disrupt our business and operations and materially and adversely  affect the quality of our services and harm our reputation.  As of March 31, 2011, the Republic of China government, through the Ministry of Transportation  and Communications, owned approximately 35.29% of our outstanding common shares. Accordingly, the  government, through its control over our board, as all non-independent board members were appointed by  the Ministry of Transportation and Communications, may continue to have the ability to control our business,  including matters relating to:  We depend on select personnel and could be affected by the loss of their services.  Our largest stockholder may take actions that conflict with our public stockholders’ best interests.  •  any sale of all or substantially all of our assets;  •  the approval of our annual operation and projects budget;  •  the composition of our senior management;  10 PART I