The Taipei Times reported yesterday that the National Communications Commission (NCC) will be employing the Cable Broadcasting Enterprise Development Fund this year to subsidise cable service operators with the intention to provide digital cable services.

This announcement is in line with the government’s goal to offer full digital cable television services by the end of 2014. The NCC believes that digital cable services are the future of television.

Digital TV penetration rate in Taiwan, according to NCC Chairman Howard Shyr, remains low. Penetration rate at the end of 2012 stood at 21.3%.

The commission, according to Taipei Times, said it completed an amendment of the rules governing the Cable Broadcasting Enterprise Development Fund last year, giving authority to the government to subsidise the cable TV operators who are planning to offer digital cable services. Under the new rules, the operators will also be required to offer interactive services to underprivileged subscribers.

The fund is contributed by cable television service operators themselves, who are obligated to place 1% of their revenue into the fund.