萬國法律事務所

National Communications Commission (NCC) has released the draft Amendment to Cable Radio and Television Act, according to which there are no longer regional restrictions on Multiple System Operators (MSOs) and in the future MSOs will be charged for broadcasting programs provided by wireless TV stations.

There are approximately 4.9 million subscribers to cable television and more than 60 MSOs in Taiwan. Currently MSOs are not allowed to have cross-regional business. If the Amendment to Cable Radio and Television Act survives the legislative process, however, the regional monopolies of MSOs would no longer exist. It is estimated that there will be more than 10 MSOs running business in a single region. In response to the concern that monopolistic enterprises may be formed which will hinder price competition, MSOs will not be permitted to merge without restriction, i.e. one MSO may not serve more than one third of the total subscribers in the country. However, scholars worry that monopolistic enterprises may still be formed in the long run.

According to the amendment, MSOs are required to broadcast the programs of the Taiwan Public Television Service. Private-owned wireless TV stations such as Taiwan Television Enterprise, Ltd. (TTV) and China Television Co., Ltd. (CTV) may designate a particular program as the required program to be broadcasted by MSOs and MSOs will be charged for broadcasting said program. Since the advertising revenues are based on audience rating, it is predicted that the program designated will be a popular one with vast audience. However, concerns still arise that it is the subscribers who will bear the costs of such required program as designated by the wireless TV stations.