The study aims to investigate the market structure in Taiwan’s cable television industry and assess the National Communication Commission (NCC)’s approach to reforming Taiwan’s cable franchise policy. The study finds that in 2009, the average number of household subscribers per cable system was 88,000, and the average revenue per system was NTD620 million; the total revenue of Taiwan’s cable system market was NTD37.2 billion, with a gross profit of NTD15.6 billion and a gross profit margin of 42%; the market was a highly concentrated one with an HHI of 8,372. While cable franchise policy reform may provide an opportunity for cable system operators to expand their operation across multiple franchises, they will not necessarily do so. It is more likely cable systems will either merge into a larger player having exclusive control over several franchises or remain as a monopoly in their respective franchise markets. The study therefore recommends the NCC should seek to address problems rising from cable franchise monopolies by two approaches: “increasing inter-modal competition by introducing other types of television services,” and “implementing good regulation to manage a monopolistic/oligopolistic cable industry.”