We provide mobile services based on the GSM network standards. We have the 900 MHz and 1800 MHz frequency bands  paired with spectrums of 15 MHz and 11.25 MHz, respectively, for our GSM services. We began providing mobile communications  services based on the GPRS network standards in August 2001, using “emome” as the portal name. We completed a system expansion  of our mobile services network to accommodate more than 8.5 million customers, including 2.0 million GPRS customers, at the end  of 2003. As of December 31, 2011, we have constructed 9,531 base stations, providing up to 99.9% population coverage. Since the  launch of our 3G mobile services, we have gradually transitioned GSM subscribers to 3G and have started to consolidate our GSM  network. As a result, the number of switches and network capacity has reduced to 44 and 6.5 million lines, respectively, as of the end  of 2010 and 2011.  We have installed an intelligent network on our mobile services network infrastructure to enable us to provide prepaid  services as well as a wide range of advanced call features and value-added services. As of the end of 2011, our intelligent network  capacity is 1.55 million prepaid customers and 1.2 million mobile virtual private network customers.  We have 15 MHz paired spectrum plus 5 MHz unpaired spectrum in the 2 GHz frequency band for our 3G mobile services,  which was launched in July 2005. We contracted Nokia Siemens Networks to provide the core network, radio access network, service  network, transmission network and maintenance network for our 3G network. To promote mobile internet use, we upgraded our  network to 3.5G in September 2006, with downlink and uplink speeds of 7.2 Mbps and 2.0 Mbps, respectively. To meet the high  growth in mobile data traffic, we have upgraded our existing High-Speed Packet Access (HSPA with capability of 14.4 Mbps and  5.76 Mbps each for Down-link and Up-link) Network to HSPA+ (with capability of 21.6 Mbps and 11.5 Mbps each for Down-link  and Up-link). As of December 31, 2011, we have completed the construction of 8,442 3G base stations with a network capacity of 4.4  million lines and 7.2 million subscribers.  In order to operate our packet-switched network more efficiently, we have consolidated GSM and 3G serving GPRS support  nodes (SGSN) into a single core network. We have also introduced the Direct Tunnel technology to flatten the packet-switched  network to enhance the user’s experience. With the introduction of high speed networks and terminals to promote our mobile internet  business, we added direct local IP access to eight locations and expanded the capacity to 46.6 Gbps as of the end of 2011.  HiNet, our internet service provider, has the largest internet access network in Taiwan, with 33 points of presence,  approximately 1,808 dial-up ports, approximately 5,518,000 broadband remote access server ports and a backbone bandwidth of  Internet Network  As of December 31, 2011 Packet-switched system after consolidation of GSM and 3G GPRS gateway support nodes 14 Direct IP access locations / capacity (in Gbps) 15.5/46.6  Serving support nodes 12  As of December 31, 2009 2010 2011 3G system 3G base stations 6,243 6,879 8,442 Servers / gateways 8/15 8/16 8/16  Lines of capacity (in thousands) 3,000 3,450 4,400  Taiwan population coverage 93.1% 94.5% 95.8 % System (Home Location Register) capacity (in thousands) 5,400 7,200 7,200  P AR T I 45