This paper reviews establishment and institutional design of the independent regulator, National Communications Commission (NCC), in communications industry in Taiwan. It also proposes suggestions for prospective improvement in the institutional system of NCC. Although NCC is designed as a council system to ensure its independence, it is still unclear about its legal position as an independent agency due to the special political .system in Taiwan. As a result, how to enhance independence to avoid interference from political forces is extremely important. Moreover, in order to promote industrial development, relations among NCC and other administrative organs should be clarified.