1

95.22 93.09 81.65 48.88

4.78 6.91 18.35

51.12

0%20%40%60%80%

100%

Local telephone

subscribers

Local telephone revenue

Long-distance telephone revenue

International telephone revenue

Other fixed network … CHT(unit:%)

Market Share of Fixed Network Operators in 2011Market Share of Fixed Network Operators in 2011

Note: Data – Dec. 2011

Source: National Communications Commission

2

Note: Total revenue of telecom services in 2011 (NTD 380.5 billion) showed an increase of 116% in comparison with revenue in 1997 (NTD 176.2billion)

Source: National Communications Commission

Distribution of Telecom Revenue by Services in 2011Distribution of Telecom Revenue by Services in 2011

Local telephone

11.70%

Long-distance

telephone 1.93%

International

telephone 6.26%

Mobile phone 57.15%

Internet and value-

added services 13.64%

Leased circuit 8.80%

MOD0.53%

3

19.7822.8124.3917.4112.7813.2911.9512.3712.8813.9515.03

80.2277.1975.6182.5987.2286.7188.0587.6387.1286.0584.97

0%

20%

40%

60%

80%

100%

20012002200320042005200620072008200920102011

post-paid prepaid

Mobile Market Mobile Market - Proportion of Prepaid Card Subscribers- Proportion of Prepaid Card Subscribers

Source: National Communications Commission

(unit ： %)

4

Evolution of Mobile MarketEvolution of Mobile Market

Note: The first 3G operator launched its service in July 2003 - four other operators began in 2005 (between July and Dec.) Source: National Communications Commission

(unit: Millions of subs)

2003.12 2004.12 2005.12 2006.12 2007.12 2008.12 2009.12 2010.12 2011.12

PHS 0.6 0.8 1.0 1.4 1.5 1.5 1.4 0.9 0.8

2G 25.1 21.5 19.9 18.5 15.9 12.7 9.8 8.2 7.2

3G 0.1 0.5 1.3 3.4 6.9 11.3 15.8 18.7 20.9

0

5

10

15

20

25

30

35PHS 2G 3G

5

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Local telephone subscribers 12.8 13.1 13.4 13.5 13.6 13.5 13.3 13.1 12.8 12.7 12.7

Mobile phone subscribers 21.8 24.4 25.8 22.8 22.2 23.2 24.3 25.4 27.0 27.9 29.0

Internet users 11.7 12.2 13.2 14.5 14.8 15.1 16.1 16.5 16.7

Fixed Broadband subscribers 1.2 2.1 3.0 3.8 4.3 4.5 4.8 5.0 5.0 5.3 5.2

Mobile Broadband subscribers 1.2 3.3 6.5 10.8 14.2 16.5 17.9

0

5

10

15

20

25

30

35 (unit：millions)

Number of Telecom Subscribers by ServicesNumber of Telecom Subscribers by Services

Notes:1. “Internet users” refers to individuals who accessed the internet during the year (figures are released by III-FIND) 2. “Fixed Broadband subscribers” refers to subscribers of ADSL, FTTx, Cable Modem, Leased Line , PWLAN3. “Mobile Broadband subscribers” refers to subscribers of 3G who can access the internet, WBA Source: National Communications Commission

6

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Local telephone subscribers 57.3 58.2 59.1 59.6 59.8 58.9 57.9 56.8 55.5 54.8 54.6

Mobile phone subscribers 97.2 108.3 114.1 100.3 97.4 101.6 105.8 110.3 116.6 120.4 124.8

Internet users 51.9 53.8 58.0 63.8 64.4 65.8 69.8 71.5 72.0

Fixed Broadband subscribers 5.1 9.3 12.4 16.5 19.1 19.7 20.9 21.8 21.6 22.9 23.8

Mobile Broadband subscribers 5.2 14.3 28.4 46.8 61.5 71.2 76.9

0

20

40

60

80

100

120

140

%

Telecom Services Subscribers per 100 inhabitantsTelecom Services Subscribers per 100 inhabitants

Notes:1. “Internet users” refers to individuals who accessed the internet during the year (figures are released by III-FIND) 2. “Fixed Broadband subscribers” refers to subscribers of ADSL, FTTx, Cable Modem, Leased Line , PWLAN3. “Mobile Broadband subscribers” refers to subscribers of 3G who can access the internet, WBA Source: National Communications Commission

7

Note: “others” include the subscribers of PWLAN, Leased Line. Source: National Communications Commission

Analysis of Fixed Broadband SubscribersAnalysis of Fixed Broadband Subscribers-by Technologies-by Technologies

20012002200320042005200620072008200920102011

ADSL 0.97 1.82 2.55 3.17 3.74 4.00 3.66 3.03 2.58 2.36 2.12

FTTx 0.55 1.26 1.53 1.96 2.30

Cable Modem 0.23 0.28 0.45 0.53 0.54 0.42 0.50 0.65 0.81 0.93 1.01

others 0.03 0.02 0.04 0.06 0.06 0.08 0.08 0.09 0.07 0.07 0.08

total 1.23 2.12 3.04 3.75 4.34 4.51 4.79 5.03 5.00 5.31 5.52

1.23

2.12

3.04 3.75

4.34 4.51 4.79 5.03 5.00 5.31 5.52

0

1

2

3

4

5

6 Million Subs

8

Expansion of Mobile Internet SubscribersExpansion of Mobile Internet Subscribers

Note: Mobile Internet subscribers include the subscribers of WAP,GPRS, PHS, WBA as well as 3G subscribers that can access data communicationsSource: National Communications Commission

(Millions)

(%)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Mobile Internet subscribers(millions) 0.3 1.6 3.5 5.3 8.1 9.1 11.8 15.3 18.2 19.5 20.7

Mobile Internet subscribers / All mobile subscribers(%) 1.3 6.4 13.6 23.5 36.4 39.3 48.8 60.2 67.5 70.1 71.3

-

20

40

60

80

100

-

10

20

30

9

9.55

15.80

19.16

21.63

24.02

26.90

28.87

29.96

31.23

33.54

36.66

39.97

42.41

54.32

66.21

61.62

50.03

38.25

30.70

24.84

21.31

19.51

17.91

16.79

15.63

14.47

10.15

9.11

8.02

7.47

7.03

6.50

6.06

5.55

5.00

4.69

4.4

4.49

4.32

0.96

1.06

1.52

2.15

3.08

3.02

3.46

3.84

3.88

3.99

4.19

4.65

4.67

- 20 40 60 80 100

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011Mobile phone

Local network

Long-distance network

International network

(in billion of minutes)（ fiscal year）

Note: Fixed Communications include the voice volume of local network, long-distance network, and international networkSource: National Communications Commission

Mobile voice volume has overtaken fixed since 2007Mobile voice volume has overtaken fixed since 2007

10

(NTD per month)

Notes:1. ARPU of mobile phone refers to total amount of mobile phone revenue per month divided by the number of mobile phone subscribers2. Figures cover only the data of mobile operators who provide both 2G and 3G servicesSource: National Communications Commission

Average Revenue Per User Average Revenue Per User （（ ARPUARPU ） ） of Mobile of Mobile ServicesServices

2005.12 2006.12 2007.12 2008.12 2009.12 2010.12 2011.12

2G 842 783 725 635 613 507 531

3G 1,256 1,021 986 885 814 812 786

0

300

600

900

1200

1500

,

11

1.85 2.95 3.71 4.04 4.46 4.82

5.69 6.60

8.00

10.49

13.87

0

2

4

6

8

10

12

14

16

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

%

Note: Mobile data service revenue includes revenue of WAP, GPRS, SMS and other data communication services Source: National Communications Commission

Mobile Data Service Revenue - as proportion Mobile Data Service Revenue - as proportion of Total Mobile Revenueof Total Mobile Revenue

12

Note: The items of data communication revenue include revenue of mobile data service, internet service, value-added services and leased circuit service Source: National Communications Commission

Data Communication Revenue as proportion of Data Communication Revenue as proportion of Total Telecom RevenueTotal Telecom Revenue

15.64%19.18%

20.92%22.60% 22.76% 23.57% 24.65% 25.47% 26.40%

29.05% 30.36%

0%

10%

20%

30%

40%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

13

SMSSMS （（ Short Message ServiceShort Message Service ）） Volume and Volume and RevenueRevenue

Source: National Communications Commission

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Messages(millions) 1286 2088 2432 2449 2796 3659 4499 5631 5663 6497 8099

Revenue(NT$ million) 3164 5291 6309 6686 7376 7872 8900 9551 9889 9488 9564

-

2,000

4,000

6,000

8,000

10,000

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000