He then outlined CASBAA’s 10 criteria as follows: no investment limits, level playing field, no program distribution limits or cartels, no restrictive rate regulation, no constraints on packaging (tiering), no unreasonable restrictions on advertising, no onerous content controls and no program supply restrictions. The others are real copyright protection and a transparent, independent, efficient regulator.

Taiwan’s strengths, based on these points include an open, free, diverse media, and an approach to content regulation that is generally reasonable. In addition, there is freedom to contract and the island is open to investment from abroad (within limits).

Taiwan’s weaknesses are that it possesses Asia’s most regressive rate regulation as well as excessive regulatory interference in packaging and tiering. Other drawbacks are the outdated utility mindset that points the market at lowest common denominator and the skewed playing field.

“The root of the problem,” said Medeiros, “is philosophical. Taiwan is regulating pay TV as if it were a public monopoly. This contrasts with dynamic change elsewhere. Markets with the strongest growth and investment have moved away from the utility mindset; they allow competing channels of distribution and, accordingly, have seen an explosion in investment.”

His and CASBAA’s recommendations to regulators in Taiwan are to balance needs of producers and consumers, while explicitly embracing long-term goals that give freer rein to competition and allow competitors to build creative package offerings. “Regulators on the island need to find mechanisms to incorporate industry expertise in regulation, while building bipartisanship. The goal should be to create a thriving market for Taiwan, not position partisan interests.”

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