●  We are continuing the build-out of our FTTx infrastructure. Because we typically realize higher average revenue per user  for our FTTx internet services, we plan to continue offering various incentives for our ADSL and other internet customers to  switch to our FTTx services. In 2011, FTTx revenue has reached 65.4% of our total broadband revenue.  ●  Focusing on maintaining our average revenue per user by promoting increased use of wireless value-added services, such as  our “emome” service, Java games, ring-back tone services, Hami music, Hami books, Hami Apps, and online shopping;  ●  Encouraging our customers to use our 3G and HSPA/HSPA+ services by offering customized mobile handsets combined with  attractive value-added services and product packages;  ●  Expanding our HSPA+ coverage and enhancing the base station bandwidth up to 42 Mbps to attract more mobile internet  customers;  ●  Catering for the high bandwidth usage of smart phone and tablet PCs, we have constructed more than 20,000 Wi-Fi Hotspot  in 2011 to share some of the data traffic from the mobile network. We are continuing the construction of an additional 10,000  Wi-Fi Hotspot and 100 hot zones in 2012, especially for highly commercial areas and special events, as a cost-effective  technology to help offload the 3G/HSPA+ data traffic;  ●  Converging fixed communications and mobile communications services to provide customers with access to personalized  information through personal computers or mobile handsets; and ●  Taking advantage of our superior brand and network quality to attract our competitors’ customers.  ●  We are developing new media to provide both higher-speed access as well as attractive content to our customers. We are also  continually enhancing our internet value-added services, such as online games, internet music, internet banking and internet  protocol video services, including hiChannel, an internet platform where customers can view videos and multimedia content.  Emerging services : Our emerging services include ICT, cloud computing and convergence services. We have been providing  ICT services since 2009, including Intelligent Energy Network, or iEN, and Intelligent Transporation System, or ITS, services.  Our experience with ICT services positions us well to develop and offer cloud computing services, and we anticipate that cloud  computing services could become an important area of growth for telecom operators in the near future. We started to offer hicloud  CaaS (Compute as a Service) and provide customers 24-hour installation services in 2010. We started to offer hicloud Mall in 2011,  which allows ISV (Independent Software Vendors) to offer their application software in the hicloud Mall for sale. In 2012 we also  introduced cloud-based multi-screen services providing music, media, news, weather, traffic information, personal information  (Hami+ Cloud) and payment services. The integration of platform and network enables our customers to use and purchase the service  through their PCs, IPTV (MOD), tablet PCs and smart phones, and cater to users’ needs to utilize value-added services anytime,  Internet services : Our strategy for internet services is to continue to build on the success of our HiNet internet services and  enhance our internet value-added services.  Mobile Communications : We offer our mobile services via both 2G and 3G networks. For 2G, we are using standard of  Global System for Mobile Communications or GSM while for 3G, wideband code division multiple access, or WCDMA is adopted.  In order to meet the demand from our customers for high-speed mobile data access, we upgraded our 3G mobile service to High- Speed Packet Access, or HSPA technology on September 12, 2006 and to HSPA+ services in 2010. The prevalence of smart devices,  such as smart phones and tablet PCs that utilize large amounts of mobile data, has become a challenging task for all mobile operators.  We are continuing to develop Heterogeneous Network, or HetNet, to meet such demand. HetNet incorporates macrocell for large area  coverage, and small cells including micro cells, pico cells, femtocells and Wi-Fi to increase our data capacity. Our strategy for mobile  service includes the following initiatives:  P AR T I 22