Broadband Policy, Market Competition, and User Adoption in Taiwan

Abstract

Taiwan has been making great efforts to promote the fulfillment of its National Information Infrastructure (NII), with broadband network technology and its application having rapidly developed in recent years. In relation to the two major forms of broadband network technology, cable modem and ADSL, two multiple system operators—namely, Eastern Multimedia Company and China Network System—provide broadband network via cable modem, and HiNet and Seednet are the major ADSL service providers. Three new fixed networks have offered ADSL services as well since they began their operations. There are 5.25 million households (HHs), or 72.11% of the household population in Taiwan, using the Internet, and 4.74 million households, or 65.05% of the HH population, using broadband (TWNIC, 2006). This chapter analyzes the broadband adoption, the competition among providers of broadband, and relevant policies in Taiwan. The research methods adopted include literature reviews, in-depth interviews, and secondary analysis of previous surveys conducted by TWNIC. Since Taiwan’s broadband penetration is the fifth highest in the world, the discussions of the major factors contributing to broadband deployment in this chapter might provide some experiences from which other countries can learn.