PART I 31 As of or for the year ended December 31, 2008 2009 2010 Taiwan population (in thousands) (1) 23,037  23,120  23,162  Total mobile customers in Taiwan (in thousands) (2) 25,413  26,959  27,840  Penetration (as a percentage of the population) (2) 110.3% 116.6% 120.2% Total mobile revenues in Taiwan (in billions) (3) NT$ 215.9  NT$ 215.2  NT$ 213.2  Number of our mobile customers (in thousands) (2)(4) 8,947  9,269  9,679  Our market share by customers (2) 35.2% 34.4% 34.8% Our market share by revenues 33.5% 33.1% 34.2% Number of our prepaid customers (in thousands) (4) 728  839  945  Our prepaid customers as a percentage of our total customers 8.1% 9.0% 9.8% Annualized churn rate (5) 11.81% 11.21% 10.35% Minutes of usage (in millions of minutes) Incoming 10,442  10,500  11,063  Outgoing 9,595  9,702  10,190  Average minutes of usage per user per month (2)(6) 189  185  187  Average revenue per user per month (2)(7)(8) NT$ 684  NT$ 653  NT$ 643  The following table sets forth information regarding our mobile service operations and our mobile customer  base for the periods indicated.  As of December 31, 2010, we had approximately 16,215 cellular base stations (including both GSM base  stations and 3G cellular base stations) covering substantially all of Taiwan’s population. We use these base  stations to support both our GSM network and 3G networks. In 2010, we upgraded more than 6,756 3G cellular  base stations with HSDPA capacity and 2,455 GSM base stations with EDGE capacity in the larger metropolises  of Taiwan. We will continue this process of implementing HSDPA and EDGE upgrades in the major areas of  Taiwan.  We offer digital mobile service through our dual band GSM network. We are one of the three national  licensed providers of GSM services. We have been allocated 15 MHz in the 900 MHz frequency band and  11.25 MHz in the 1800 MHz frequency band for GSM services and general packet-switched radio services, or  GPRS, and 15 MHz paired spectrum plus 5 MHz unpaired spectrum in the 2 GHz frequency band for 3G mobile  services. This is the largest frequency spectrum allocation to any mobile operator in Taiwan. In February 2002,  the Ministry of Transportation and Communications granted 3G mobile services concessions to five companies,  including us. In March 2002, we paid NT$10.2 billion to the government for our concession. Our 3G mobile  services license is valid until December 31, 2018. In July 2005, we launched our 3G mobile services using  WCDMA technology. We also offer the largest international roaming network among Taiwan mobile service  providers. In particular, our 2G customers have access to 338 networks in 179 countries through our GSM  service roaming network and 227 networks in 113 countries through our GPRS roaming network. In addition,  our 3G service system includes 101 networks in 52 countries.  As the market for mobile services has continued to expand, we have experienced substantial growth in  our mobile customer base. We are the largest mobile operator in Taiwan in terms of revenues and number of  customers. We had 9.68 million mobile customers, for a market share of approximately 34.8% of total mobile  customers and approximately 34.2% of total mobile services revenues in Taiwan, as of December 31, 2010.  (1) Includes monthly fees.  Year ended December 31, 2008 2009 2010 NT$ NT$ NT$ US$ (in billions) (in millions) Mobile data 7.0  8.4  11.1  379.3  Other 1.8  1.6  1.8  59.5  Total mobile services 72.4  71.4  73.1  2,507.1 