Can the Adjustment of Cable Television Franchise Areas Increase the Intensity of Competition?


Kuo-Feng Tseng


cable television, franchise area, competition, game theory


Because most of the cable systems are monopoly in Taiwan, the National Communications Commission (NCC) is going to expand the scale of franchise areas to increase intensity of the competition among systems. This research interviewed ten managers of the independent and conglomerate cable systems. It found that most of the cable systems did not agree to adjust the current franchise areas, even the conglomerate in the short time, because they were afraid of new entrants competing with the limited subscribers. Since, this policy may make more merger & acquisition and create bigger cable conglomerates, instead of competition. Therefore, the future competition of cable television systems will come from the multimedia value added services of the existing telephone providers, if those telecommunications can have enough programming contents to compete with the cable conglomerates.