PART I exchange rates, in New Taiwan dollar per U.S. dollar. These rates are provided solely for your convenience and  are not necessarily the exchange rates that we used in this annual report or will use in the preparation of our  periodic reports or any other information to be provided to you.  Source: Federal Reserve Statistical Release, Board of Governors of the Federal Reserve System. (1) Annual  averages are calculated using the average of exchange rates on the last day of each month during the  period. Monthly averages are calculated using the average of the daily rates during the relevant period.  Our business and operations are subject to various risks, many of which are beyond our control. If any  of the risks described below actually occurs, our business, financial condition or results of operations could be  seriously harmed.  As a telecommunications service provider in Taiwan, we are subject to extensive regulation. See “Item  4. Information on the Company—B. Business Overview—Regulation” for a discussion of the regulatory  environment applicable to us. Any changes in the regulatory environment applicable to us may adversely affect  our business, financial condition and results of operations.  Currently, our regulator is the National Communications Commission, which was formed on March 1, 2006  in accordance with the National Communications Commission Organization Law, or the NCC Organization  Law, which was intended to transfer regulatory authority over the Taiwan telecommunications industry from  the Ministry of Transportation and Communications and the Directorate General of Telecommunications to the  National Communications Commission.  We have been designated by the government as a dominant provider of fixed communications and mobile  6 Risks Relating to Our Company and the Taiwan Telecommunications Industry  Extensive regulation of our industry may limit our flexibility to respond to market conditions and competition,  and our business may suffer.  D. Risk Factors  C. Reasons for the Offer and Use of Proceeds  B. Capitalization and Indebtedness  Not applicable.  Not applicable.  Year Ended December 31, Average(1)  High  Low  At Period End  2006 32.51 33.31 31.28 32.59 2007 32.41 33.41 32.26 32.43 2008 31.51 33.58 29.99 32.76 2009 33.02 35.21 31.95 31.95 2010 31.50 32.43 29.14 29.14 October 30.82 31.30 30.42 30.60 November 30.32 30.52 30.12 30.47 December 29.90 30.37 29.14 29.14 2011 (through April 15) 29.30 29.98 28.78 29.04 January 29.11 29.36 29.03 February 29.28 29.76 28.78 29.74 March 29.49 29.63 29.35 29.40 April (through 15) 29.07 29.25 28.92 29.04