This essay mainly utilize theoretical tool of ¡§State Centralism¡¨ to observe fixed network industry development history in Taiwan. After 1980s, based on characteristics of fixed network, state monopolizes the industry. However, digital techniques develop rapidly from last 1970s, the legitimacy of traditionally state monopoly model is gradually decrease. In the meantime, authoritatrian regime reform and economic liberalization in Taiwan start from 1980s to make state autonomy decreasing and launch liberalization of fixed network industry. Nevertheless, state role in industry didn¡¦t disappear after fixed network liberalization. In this research, author point out fixed network liberalization process in Taiwan is one kind of state centralism model. The liberalization is an ¡§instrument¡¨ but ¡§object¡¨ for state to accelerate development of information society and industrial structure reform in Taiwan. After fixed network market open in 2000, the market almost still monopolized by Chunghwa Telecom Co. It never achieves ¡§competitive development¡¨ environment planed by state. For fixed network industry of Taiwan, though state have outline regulatory policy, how to achieve a competitive environment after liberalization is the most important challenge to state to face new age of digital convergence.