ABSTRACT Traditionally, voice, data, and graphics have to be transmitted via different media/channels, resulting in the separate developments of various industries such as telecommunication, cable TV, etc. in the past years. Nowadays, with the help from advance technology, the boundaries of those industries have gradually become vague which brings in the possible competition among those individual industries. In addition, the new developments also provide increasing chances for consolidation as well as a new trend for cross-boundary co-operations among those traditional industries. Since the pass of ¡§ Law of Cable TV ¡¨ in July 1993, five big conglomerates groups are gradually formed in Taiwan¡¦s Telecom Sector after a series of competition and integration. Started in 1997, The Ministry of Transportation and Communication completed the liberalization of Taiwan¡¦s telecommunication market after publishing the regulations governing the fixed-network communication business in 1999 and established the fundamental law regulation for cross-business between fixed network and telecommunication sectors. Despite regulations has provided the legitimate base for a new age for telecom industry, the most crucial and timely thing for the cable TV system operators is how to run the business in the new telecom industry in order to break-through the existing limitations for cable TV business which includes construction of infrastructure, money raising, human resources management, etc. Since the open up of Taiwan¡¦s fixed network market, ¡§Last-mile network construction¡¨ is a common issue faced by new fixed-line network providers when they compete with Chunghwa Telecom Co. Ltd for its fully integrated connection with end users. Nevertheless, ¡§The Last Mile¡¨ issue could be mitigated for cable TV system operators given that on 1) they are closer to users in regional operations; 2) they have partially completed a dual-direction cable service system; and 3) they have the right to construct drainage system for lay out cable line . With these three advantages, the local cable operators could form business alliance with new fixed-line network firms to provide solutions to ¡§the last mile¡¨ issue. In this thesis, the author We chooses the local cable operators in Kaoshiung City as examples and has interviewed four companies in order to have an understanding of their synergy and difficulties incountered by those cable operators when entering into the new telecom industry and forming business alliance with new fixed-line network firms. By the end, the author provides three suggestions including 1) to speed up their construction for dual-direction cable service system, 2) to consolidate ¡§ independent local cable systems¡¨, and 3) to form strategic alliances with fixed-line network firms. The alliance between cable operators and fixed-line network firms will not only motivate cable operators to build up dual-direction cable service system but also to enhance their experience and train talented staff in telecom sector through the help from fixed-line network firms. In addition, it will also provide an easy access for fund raising to support their business expansions. As a result, we expect a more and more thorough national network system to bring in good benefits to the whole country.