Cloud Computing is also one of our key new business initiatives, as it is expected to be one of the main long-term growth  platforms for telecom operators in the coming years. We have made advances in this segment throughout 2011 which we believe  will position us as an industry leader over the long run. We continue to cooperate with the government network communication  entities and independent software vendors to promote innovative cloud services and applications. We have already begun to offer  Software as a Service Customer relationship management, or SaaS CRM, hicloud CaaS, and hicloud Apps mall to small and medium  sized enterprises and public users. We have also made over 130 SaaS in hicloud Apps mall, and the number of our cloud customers  exceeded 1,000 small and medium sized enterprises as of the December 31, 2011. Underpinning the rollout of our cloud computing  services is our capability and experience in offering datacenter services to enterprise customers, including our ongoing initiative to  build the largest cloud computing data center in Taiwan in anticipation of growing demand for this service. We believe the strength  and reliability of our technology and services provide us with competitive advantages to continue expanding our cloud computing  services in the future. As an integrated telecom service provider, we are providing and continuing to develop convergence services. For example,  we have integrated our internal resources to offer cross-platform services over our broadband, mobile and internet platforms. These  convergence services allow our customers to access our services, such as our multi-media programs, through a variety of terminals  and devices. In order to retain and expand our large customer base and to encourage our customers to increase their use of our services and  products, we continue to focus our marketing strategy on the following areas.  P AR T I 41 ●  Business Customers. We expanded our customer focus to include small and medium-sized enterprises in addition to large  corporations. We seek to serve the needs of large corporate customers by devoting a project manager or project engineer to  service these customers. These account managers are responsible for developing customized solutions and tariff packages  to meet the specific needs of our customers. We continually update and expand our service offerings so that we can remain  a one-stop telecommunications services provider to our corporate customers and provide for all of their telecommunications  needs. Our dedicated local teams serve the needs of small and medium-sized enterprises. These teams also use our data bank  to identify and target potential clients for promoting our e-commerce and mobile services. In addition, we help our corporate  customers improve their efficiency and competitiveness by creating information systems for them.  ●  Distribution Channels. We seek to facilitate customer subscription by adding more service points. In addition, we seek to  broaden our distribution reach by strengthening our cross-industry alliances and marketing relationships. Furthermore, we  seek to expand our sales channels by implementation of a sales agent system. In 2009, we began a collaboration with Tsann  Kuen Trans-Nation Group, allowing the registration of mobile numbers at electronics stores for the first time, effectively  increasing our points of sale. We also developed staff incentive programs to better motivate our sales staff.  ●  Pricing and Promotions. We design flexible pricing packages that allow customers to select structures best tailored to their  usage patterns, and design special promotional packages to encourage usage. For example, we have provided our “Friends  and Family”, “Genki Plan”, “Let’s Talk” and “My Hotline” promotion package to attract mobile customers.  ●  Services, Products and Bundled Offerings. We continually develop new value-added services and products, and bundle  our services and products based on different market segments, with the aim of increasing our high-usage customers and  enhancing customer loyalty. For example, we entered into an agreement with Apple Inc. and are currently a reseller of the  iPhone in Taiwan. The iPhone combined with our mPro service helps retain existing customers and generate revenues through  the increased use of our value-added services.  Marketing, Sales and Distribution  Marketing Strategy 