萬國法律事務所

Taiwan’s Executive Yuan passed amendments to the three broadcasting laws and opened the cross-districts operation of cable television, thereby eliminating the situation of the monopoly of “one district, one broadcaster”. The basic rates will be announced by the central authority. Together with digitalization, users will then be able to select for purchase cable television channel packages provided by broadcasters, thereby greatly reducing the number of basic channels as well as monthly rates.

Official from the National Communications Commission (NCC) indicated that, in the past, the cable television system in Taiwan was divided into 51 districts, with 35 districts monopolized by a single broadcaster. In the future, all of Taiwan will be consolidated into one region, with broadcasters operating cross-districts, thereby increasing competitiveness of the broadcasters and eliminating the existing monopolies.

When the amendments are enacted, the rates will be determined and announced by the central authority, with the exception of municipalities or counties directly under the jurisdiction of the Central Government, whereby the rates will be determined by the local governments.

Currently, there are approximately 100 basic channels available via cable television, with viewers paying monthly fees of NT$ 500~600, and there are not many quality programs provided. In the future, the central authority will determine the basic rates, thereby reducing the monthly rates of viewers and allowing broadcasters to freely compete with quality programs that are not part of the basic channel packages. Viewers may then decide whether or not to purchase the packages made available depending on their contents and prices, which will be determined entirely by market mechanisms.

NCC officials note however, that in the future, mergers must still be approved by the NCC, and market competition, consumer rights and public interest are the factors that will be considered when any application is reviewed.

When new enterprises enter the cable system industry, digitalization will be a prerequisite and existing broadcasters must complete digitalization before the next license renewal. It is expected that before the 2015 license renewal, the availability of digitalized cable television will reach at least 50%.

The amendments in question also liberalize the “Party-Government-Military Restriction” and will permit the government to indirectly hold interest in broadcast media, but the shares held by the government may not exceed 10%. Political parties continue to be prohibited from holding any interest.

The new laws also provide for clear regulations with respect to the content of broadcast television programs. It is explicitly provided that no placement marketing by the government is permitted during broadcasts and television programs and no commercial placement marketing is permitted during news and children’s programs. Placement marketing is permitted, however, in other programs, but information on the placement sponsor must be disclosed.