This chapter examines Taiwan's approach in liberalizaling its telecommunications market. Liberalization began in 1988 when competition was allowed in the customer premises equipment market. The pressure to go further intensified in 1990 when Taiwan sought accession to the General Agreement on Tariffs and Trade, forerunner to the World Trade Organization (WTO). With a backlog of one million telephone applications to meet, the Directorate General of Telecommunications (DGT) was also under pressure. Several draft amendments to the Telecommunication Law were proposed in 1992 and 1995, but were rejected as insufficient by the Legislative Yuan. Major market reforms were not introduced until the government took the strategic decision to develop Taiwan into an Asia-Pacific Regional Operations Centre (APROC), and subsequently revised the Telecommunications Act in January 1996.
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