Can Taiwan Cable television industry benefit from Merger & Aquisition?

A Critical Research on the Mergers and Acquisitions (M A ) of the Taiwan Cable Television Industry

Chapter I

Introduction

An Overview of the Taiwan Cable Industry

The Taiwan Cable Television Industry is considered as the most developed and competitive industry of its kind within the entire East Asia . The industry caters to more than 75 of the Taiwanese population due to its robust technology of 200 cable systems which serves four million cable households . The average subscription fees of Taiwanese on their cable systems amounts to US 20 which eventually

creates US 1 billion in revenue per annum (Hsieh and Chiu , 1997 ,

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In addition with this , since Taiwan is one of the most affluent countries in the entire East Asia , the Cable Television Industry caters to advertisement and the likes from both local and international companies . It is with this respect that the United States of America (USA ) investors are flocking all over Taiwan in to have their share from the most profitable market in the region . The success of foreign investors in Taiwan more specifically in the Cable Television Industry is a culmination of a perfect strategic plan that enables the aforementioned to be a robust regional player (Hsieh and Chiu , 1997 br

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The result of the telecom liberalization in Taiwan has led to both foreign and local investment boom . The close proximity of Taiwan to the Chinese Market has paved the way for the country to provide cross-b services from various businesses coming from the former . According to Hsieh and Chiu (1997 ) since 1997 , the Ministry of Transportation and Communications (MOTC ) has already liberalized five telecom industries which include mobile phones and paging systems as a response to their gradual plan of liberalizing the telecommunications industry (Hsieh and Chiu , 1997 ,

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Before the legalization of cable television in 1990 , cable televisions in Taiwan started as antenna television services most specially in remote areas in the country wherein normal television receptions are not adequate (Nazzaro , 1996 as cited from Ven-Hwei , Edward and Pu-tsung 1998 . Under the Community Television Rules at that time , cable operators can only provide services those in the communities that do not have the reception of the local televisions . The scenario is further worsened by the fact of the initial absence of laws in Taiwan which tells the specifics of satellite transmission programs . It is with this respect that the industry was tagged as illegal from the time of its inception (Ven-Hwei , Edward and Pu-tsung , 1998

Since the cable television before the 1980 's only caters to relatively small populations , the government overlooked the aforementioned 's state of affairs . However , come the 1980 's , the industry has expanded rapidly by the addition of television programs coming from Japan and Hong Kong It is with this respect that television programs coming from Japan and Hong Kong become a substitute to state-controlled broadcast televisions Since the rise of the cable television industry in the early 1980 's the government has started to create...