uisition Projects from vendors National 1 < 5 % No significant China development Regional > 95% Only tailoring 1 Increasing outside vendor China usage 2 National 1 Development Knowledge about Taiwan department. architecture and with 500 processes they would people³ 3 not like to outsource National 2 Development Use also big foreign Taiwan dep. with 200 software companies4 people National 3 A lot of in-house 100-200 small apps. from Taiwan dev. 1300 service prov. people in the own lab This operator has a few software engineers from a local software company at their premises performing tailoring and other tasks for them continuously on request. This operator uses 70-80% of their investment budget for hardware, about 10% for software purchases and 10% for personnel. This operator uses of the their software systems expenditure 25% for the equipment, 40% for own personnel, 30% for software. Overall software systems expenditure 40% personnel, 40% HW, 20% SW (10-15% of HW price is SW) the software vendor were also asked. These questions were open-ended SO that other possible issues could also be brought up. In Tables 5 and 6, the basic data on the topic areas 1 and 2 is presented: the type of telecom operator, their estimated percentage of spending on internal software development based on the current accounting data, the estimated percentage of spending on software licenses (software products) or services (i.e., for software projects conducted by an external provider). The comments on the current status and the development trends in the software development as compared to acquisition of licenses for the foreseeable future are listed in the last two columns. The situation on the Chinese telecom market is still, mid of 2009, not fully settled. The Chinese government decided in June 2008 to revamp the telecom market by 2009. Of the previous five operators, only three emerged after merging operations in late 2008. Further, the government has assigned the 3G technologies to each of the three new operators. As of the time of