This essay deals with the entry competition among cable TV (CATV) operators by analyzing the regulation and the industrial environment. There are two types of operators in the Taiwanese CATV industry—the new entrants and the incumbents. The government creates a huge entry barrier when it requires the new entrants to compete with the incumbents for the CATV Franchise Agreement at the same time. This essay describes the factors that result in the discouragement for the new entrants to get into the CATV industry.
The findings in this essay indicate that the lack of considerations in the policy-making process may have serious implications for the status quo. Several suggestions are made to remedy the problem.