1

Market Share of Fixed Network Operators in 2008Market Share of Fixed Network Operators in 2008

Note: Data – Dec. 2008

Source: National Communications Commission (NCC)

(unit :%)

97.3375.94

57.78

24.0642.22

2.67

0%

20%

40%

60%

80%

100%

Local telephone subscribers Long-distance telephone revenue International telephone revenue

CHT Other fixed network operators

2

Long-distancetelephone,

2.73%

Internationaltelephone,

6.50%

Localtelephone,

9.98%Leased circuit,

8.43%Internet andvalue-added

services,13.16%

Others, 0.00%

Mobile phone,59.20%

Note: Total revenue of telecom services in 2008 (NTD 367.4 billion) showed an increase of 108.5% in comparison with revenue in 1997 (NTD 176.2billion)

Source: National Communications Commission (NCC)

Distribution of Telecom Revenue by Services in 2008Distribution of Telecom Revenue by Services in 2008

3

Mobile Market Mobile Market - Proportion of 2G Prepaid Card Subscribers- Proportion of 2G Prepaid Card Subscribers

Note: 2G prepaid card subscribers / 2G subscribers

Source: National Communications Commission (NCC)

19.78%

22.81%24.39%

17.41%

12.78% 13.29%

16.47%

19.66%

0%

10%

20%

30%

2001 2002 2003 2004 2005 2006 2007 2008

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 (NCC)

0

5

10

15

20

25

303G 2G PHS

PHS 0.6 0.8 1.0 1.4 1.5 1.5

2G 25.1 21.5 19.9 18.5 15.9 12.7

3G 0.1 0.5 1.3 3.4 6.9 11.3

2003 2004 2005 2006 2007 2008

(unit: Millions subs)

5

0

10

20

30

Local telephone subscribers 12.8 13.1 13.4 13.5 13.6 13.5 13.3 13.1

Mobile phone subscribers 21.8 24.4 25.8 22.8 22.2 23.2 24.3 25.4

Internet users 11.7 12.2 13.2 14.5 14.8 15.1

Broadband subscribers 1.2 2.1 3.0 3.8 4.3 5.1 6.0 7.1

2001.12 2002.12 2003.12 2004.12 2005.12 2006.12 2007.12 2008.12

(uni t mi l l i ons)：

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. “Broadband subscribers” refers to subscribers of ADSL, Cable Modem, Leased Line and PWLAN.Source: NCC

6

Telecom Services Subscribers per 100 inhabitantsTelecom Services Subscribers per 100 inhabitants

Notes:1. “Market Penetration” refers to service subscribers per 100 inhabitants 2. “Internet users per 100 inhabitants”: figures released by III- FIND 3. “Broadband subscribers per 100 inhabitants” - from September 2006, the figures included the number of 3G subscribers that can access the internet. Source: NCC

0

50

100

150

Local telephone subscribers per100 inhabitants

57.3 58.2 59.1 59.6 59.8 58.9 57.9 56.8

Mobile subscribers per 100inhabitants

97.2 108.3 114.1 100.3 97.4 101.6 105.8 110.3

Internet users per 100 inhabitants 34.9 47.6 51.9 53.8 58.0 63.8 64.4 65.8

Broadband subscribers per 100inhabitants

5.1 9.3 12.4 16.5 19.1 22.1 26.1 30.9

2001 2002 2003 2004 2005 2006 2007 2008

(Market Penetration, ％ )

7

Note: “others” include the subscribers of PWLAN, Leased Line, as well as 3G subscribers who can access the internet. Source: NCC

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

0

1

2

3

4

5

ADSL 0.97 1.82 2.55 3.17 3.74 4.00 4.21 4.29

Cable Modem 0.23 0.28 0.45 0.53 0.54 0.42 0.50 0.65

others 0.03 0.02 0.04 0.06 0.06 0.64 1.27 2.19

2001 2002 2003 2004 2005 2006 2007 2008

(Mi l l i on Subs)

8

Expansion of Mobile Internet SubscribersExpansion of Mobile Internet Subscribers

Note: Mobile Internet subscribers include the subscribers of WAP,GPRS, PHS, as well as 3G subscribers that can access data communications

Source: NCC

0

5

10

15

20(Millions)

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

(%)

Mobile Internet subscribers 0.3 1.6 3.5 5.3 8.1 9.1 11.8 15.3

Mobile Internet subscribers/ All mobile subscribers

1.3 6.4 13.6 23.5 36.4 39.3 48.8 60.2

2001 2002 2003 2004 2005 2006 2007 2008

9

9.55

15.80

19.16

21.63

24.02

26.90

28.87

29.96

31.23

33.54

54.32

66.21

61.62

50.03

38.25

30.70

24.84

21.31

19.51

17.91

10.15

9.11

8.02

7.47

7.03

6.50

6.06

5.55

4.57

4.69 3.99

3.88

3.02

3.08

2.15

1.52

1.06

0.96

3.84

3.46

- 20 40 60 80 100

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008 Mobi l e phoneLocal networkLong- di stance networkI nternat i onal network

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

(in billion of minutes)

Note: Fixed Communications include the voice volume of local network,

long-distance network, and international network

Source : NCC

(fiscal year)

10

Average Revenue Per User Average Revenue Per User （（ ARPUARPU ） ） of Mobile Servicesof Mobile Services

(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: NCC

0

300

600

900

1200

1500

2G 842 783 725 635

3G 1,256 1,021 986 885

2005.12 2006.12 2007.12 2008.12

,

11

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

Note: Mobile data service revenue includes revenue of WAP, GPRS, SMS and

other data communication services

Source: NCC

1.852.95

3.71 4.04 4.46 4.825.69 6.60

0

2

4

6

8

2001 2002 2003 2004 2005 2006 2007 2008

(%)

12

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

Note: The items of data communication revenue include revenue of mobile data

service, internet service, value-added services and leased circuit service

Source: NCC

24.65% 25.47%

15.64%

19.18%20.92% 22.60% 22.76% 23.57%

0%

10%

20%

30%

2001 2002 2003 2004 2005 2006 2007 2008

13

SMSSMS （（ Short Message ServiceShort Message Service ）） Volume and RevenuVolume and Revenuee

Source: NCC

-

1,000

2,000

3,000

4,000

5,000

6,000

-

2,000

4,000

6,000

8,000

10,000

Messages(millions) 1,286 2,088 2,432 2,449 2,796 3,659 4,499 5,631

Revenue(NT$ million) 3,164 5,291 6,309 6,686 7,376 7,872 8,900 9,551

2001 2002 2003 2004 2005 2006 2007 2008