• New Initiatives • Geographic Expansion 2010 brought encouraging developments for our international and cross-strait initiatives. We  have worked hard to foster our relationships in mainland China and outside of Taiwan. Our joint  venture with Viettel to establish the largest IDC company in Vietnam marked our first overseas  endeavor. Replicating our deep experience with call center services, we started a joint venture  As an integrated telecommunications operator, convergence services are a natural extension for  Chunghwa Telecom. We have all of the necessary ingredients for a converged service offering,  and are able to package them in a way that meets customer demands for cross-platform services. For example, during the 2010 FIFA World Cup in South Africa, we were able to show the action  through MOD on television screens, through HiNet for internet users, and also through mobile  internet for smartphone users. We have also packaged our music service through a collaboration  with KKBOX, and offer a service called hifree on our MOD, mobile and the internet platforms. Further increasing our convergence capability, we have launched a system that will allow our  customers to access our MOD, mobile and HiNet platforms using a single sign-on entry point. As  another example, the Disney Channel can be accessed via cross platforms on MOD, hichannel  and Hami. It is these types of seamless convergence services for our customers that will be a key  area of focus for our engineers and development team moving forward. Cloud computing may have been a buzz word in 2010, but it is certainly not a passing fad. Dr.  Lu is proud to be the President of the Cloud Computing Association in Taiwan, which has 100  corporate members, all striving to promote cloud computing services and to enable Taiwan  companies to be cloud computing solution providers. We are constructing the largest cloud  computing data center in Taiwan in anticipation of growing need for this service, and we already  have signed on several hundred SME (small and medium sized enterprises) companies. For  CHT, our emphasis is always on exceptional service and our customers are turning to us because  our offering is easy to use, does not require a large resource commitment up front, and is  extremely scalable. Our corporate ICT services are focused in following areas, all of which performed very well in  2010: iEN (Intelligent Energy Networks), ITS (Intelligent Transportation System), PBX (private  branch exchange), call centers, IDC (internet data centers) and information security. Corporate  customers turn to Chunghwa for their technical expertise in these initiatives, and enlist our help  in their initiatives to protect their data, improve productivity and service levels and reduce their  environmental impact. Individual consumers and businesses alike are evolving the way that they interact with one  another: communications are increasingly real-time and on-line, where data security and reliability  is crucial. At Chunghwa Telecom, we are responding to the evolution in communications by  broadening our offering to include new initiatives that include corporate ICT services, cloud  computing and convergence services.