PART I Each of our operating segments is managed separately because each represents a strategic business unit that  serves a different market. We measure our segment performances mainly based on revenues and income before  tax.  Our revenues increased by 2.1% from NT$198.4 billion in 2009 to NT$202.4 billion (US$6.9 billion) in  2010. This increase was primarily due to increase in revenues generated from mobile communications, internet,  international fixed communications and other business sectors.  Domestic fixed communications revenues comprised 36.0% and 34.9% of our revenues in 2009 and 2010,  respectively. Our domestic fixed line revenues decreased by 1.1% from NT$71.5 billion in 2009 to NT$70.7  billion (US$2.4 billion) in 2010.  Local telephone services.  Our local telephone revenues decreased from NT$33.2 billion in 2009 to NT$32.3  billion (US$1.1 billion) in 2010. This reflects a 6.4% decline in traffic volume from 14.6 billion minutes in 2009  to 13.7 billion minutes in 2010, offset by a 0.5% increase in average local usage fees. The decline in traffic  volume was primarily due to the traffic migration from fixed line services to mobile and Internet telephone  services. We expect this trend to continue as broadband and mobile services become more widely adopted in  Taiwan. However, we believe the rate of such migration is slowing down. Our local interconnection revenues  decreased by NT$77 million (US$2.6 million) from 2009 to 2010 because of the decrease in fixed line to mobile  voice traffic volume of calls terminating on mobile networks of alternative operators. Domestic long distance telephone services.  Our domestic long distance telephone revenues decreased by  10.2% from NT$7.4 billion in 2009 to NT$6.6 billion (US$0.2 billion) in 2010. This decrease was mainly due  to a decrease in traffic volume from 3.6 billion minutes in 2009 to 3.4 billion minutes in 2010 and domestic long  distance interconnection tariff decreases mandated by the National Communications Commission. The decrease  in traffic volume was primarily due to the continued traffic migration from fixed line services to mobile services  and VoIP. Our interconnection revenues also decreased primarily because the telecommunications operators  construct their own interconnection circuit.  Broadband access . The number of our ADSL customers decreased from 2.7 million in 2009 to 2.3 million  in 2010 due to customer migration to our FTTx services. There was an increase in the number of FTTx customers  from approximately 1.6 million in 2009 to approximately 2.0 million in 2010. Broadband access revenue  increased from NT19.9 billion for 2009 to NT$20.3 billion (US$0.7 billion) for 2010.  Domestic leased line . While demand for higher speed leased lines continues to increase, our overall leased  line tariffs have continued to be adversely affected by competition from other fixed line operators, as well as  the continued migration of domestic leased line customers to broadband services. Domestic leased line revenue  decreased from NT$6.7 billion for 2009 to NT$6.1 billion (US$0.2 billion) for 2010.  74 Domestic fixed communications  Revenues  The year ended December 31, 2010 compared with the year ended December 31, 2009  For the year ended December 31, 2008 2009 2010 (as percentages of total revenues) Income from operations 29.0  28.5  28.3  Other income, net 0.5  0.4  0.2  Income before income tax expense 29.5  28.9  28.5  Income tax expense 6.9  6.4  4.5  Consolidated net income 22.6% 22.5% 24.0% Attributable to: Stockholders of the parent 22.3  22.1  23.5  Minority interests 0.3  0.4  0.5 