New Cable-Leasing Licenses Challenge HiNet’s ISP Dominance

The Taiwanese government’s telecommunications agency is set to award new cable-leasing licenses to allow TV companies to share hardware with ISPs.

Kao Kai-sheng, the island’s deputy director-general of
telecommunications, has confirmed that the move is slated for this
December. The deregulation measure is seen as finally leveling the
playing field between HiNet, a unit of Chunghwa Telecom, and the more
than 180 private ISPs vying for a share of the dial-up market. At
present, private ISPs have no option but to lease lines from Chunghwa
Telecom.

According to a recent report prepared by Taylor Nelson SOFRES Taiwan,
HiNet currently boasts a market share of 59%, while Digital United
SeedNet – a spin-off from the state-funded Institute for Information
Industry – holds another 11%.

The liberalization steps are also expected to bolster Taiwan’s small but
rapidly growing e-commerce sector.