After the U.S. Telecommunications Act of 1996 allowing cross-ownership of telecommunications and cable industry, Taiwan also amended the Cable Broadcast and Television Law in 1999 that permits the cross-ownership of the two industries. However, cable and telecommunications industry are subject to two different sets of regulatory laws. Convergence of the two industries may cause problems and confusions in application of two different sets of rules. In this article, we indicate four scenarios of cross-ownership in Taiwan. (1) Cable systems provide Type I telecommunications services: Due to the high threshold of telecommunications franchise, cable systems in Taiwan are not particularly interested in becoming a telecommunications service provider. However, they are more interested in leasing their cable networks. (2) Cable systems provide Type II telecommunications services: Cable modem services have been launched in Taiwan for years. An important issue in this regard is "open access." Furthermore, Taiwan began to legalize Internet phone services in July 2001. (3) Type I telecommunication carriers provide cable service: Under the circumstances of an increasingly concentrated cable market, there is little space for telecommunication carriers to enter into the market. Nevertheless, whether a telecommunication carrier via its telecommunication network providing video signal such as VOD or MOD will be considered as "cable service" is controversial. We suggest that when a telecommunication carrier has not yet provided instant "multichannel video programming distribution" (MVPD) should not be classified as "cable service" (4) Type II telecommunication carriers provide cable service: Type II carriers are very. unlikely to provide cable service because they are non-facility based service providers.