Aside from the high-profile fight between central and local governments over the power to regulate cable TV operators, recently passed amendments to the Cable Television Law (
In addition to the transfer of the power to set standards for cable TV subscription fees and impose penalties on cable TV operators from local governments to central government, the amendments lifted a restriction on the shareholders of cable TV companies.
The restriction was intended to prevent a monopoly in the cable TV industry by any individual business group. Under the old law, while one shareholder could not possess over 10 percent of the stock issued by a cable TV company, the total percentage could not exceed 20 percent if investment by the shareholder's affiliated businesses and close relatives were counted in.
"This will serve to further centralize the shares of the cable TV market and worsen the situation in which the market is monopolized by a small minority of business conglomerates," warned Ho De-fen (
The active participation in the process of legislation by independent legislator Tsai Hau (蔡豪) -- a former cable TV operator and current board member of the Eastern Multimedia Company (東森多媒體) -- has invited public doubts over his role in a situation that obviously involves a conflict of interest.
The reckless way the amendments were rushed through in the final sitting of the legislature's just-concluded session, without going through any debate in a committee meeting, has also raised questions.
The amendments were hammered out in an inter-party negotiation between party representatives in late December, and all the six other versions of the amendments were ignored. Also, the process replaced a ballot on the floor of the legislature, which is how most legislation is passed by lawmakers.
"I was told that certain legislators connected to the cable TV business had lobbied and pressured [the negotiation representatives to have the amendments passed]," said People First Party legislator Diane Lee (
"Most legislators didn't even have any idea as to what the legislation was about and what motive was behind it," Lee added.
Despite the worry over the monopoly problem, cable TV operators yesterday argued that the restriction on shareholders is unnecessary because the law already sets a restriction on the market share of individual investors and their affiliates.
Clemens Chung (鍾芳程), president of the Wonderful Cable TV (萬象有線電視) in Taipei, said many cable TV operators have in fact borrowed other people's names to represent themselves in a company in an effort to evade the restriction.
As the reality stands, companies without the investment of a big major business group can hardly survive, Chung noted.
"As there is a growing demand to upgrade the quality of service. An independent individual can never afford the huge demand of capital," Chung said.
"While there were over 800 cable TV companies nationwide in the past, less than 80 have been qualified for licenses as of today," Chung added.
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