Taiwan Considers 'Starlink Clause' for Low-Orbit Satellites, Urges Focus on Security and Public Interest

Taiwan's parliament is considering changes to telecommunications law that could pave the way for services like Elon Musk's Starlink to operate in the country. The proposed amendments to Article 36 of the Telecommunications Management Act are seen as crucial for Starlink's potential entry.

The Taiwan Communications Society has voiced strong support for introducing diverse low-orbit satellite services, but insists that national security, local regulatory oversight, and the public interest must be the guiding principles. The society warns against loosening regulations on foreign ownership and executive qualifications without simultaneously establishing clear frameworks for national security reviews, local operations, data governance, communication surveillance, fraud prevention, cybersecurity, and exit strategies.

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Introducing diverse low-orbit satellite services is indeed necessary, but the adjustment of related systems must still be based on national security, local regulation, and public interest.

"Introducing diverse low-orbit satellite services is indeed necessary," stated the society, "but the adjustment of related systems must still be based on national security, local regulation, and public interest."

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Key communication control, user data governance, and legal responsibility must be incorporated into a locally regulated and executable system. Satellite services can cross borders, but responsibility cannot be offshore.

The society highlighted that Starlink's global expansion often operates under its own policies, sometimes challenging local telecom laws. Starlink's delayed entry into Taiwan is reportedly due to existing regulations on foreign shareholding, which limit foreign direct investment to 49% and total foreign ownership to 60%. Some proposed amendments aim to create exceptions or relax these rules specifically for satellite communication providers.

Referencing Japan's approach, where major carriers like KDDI, NTT DOCOMO, and SoftBank have integrated satellite services into their offerings for mobile direct-to-satellite communication, the society proposed a conditional, phased market opening. This would involve requiring international satellite operators to establish legally registered entities in Taiwan with substantial operational and accountability capabilities. For services directly connecting to mobile phones or utilizing Taiwanese mobile frequencies and core network resources, partnerships with local licensed telecom operators would be mandatory. The society also stressed the importance of setting up domestic ground stations or equivalent regulatory nodes, clearly defining responsibilities for user services, emergency communications, personal data protection, cybersecurity, and judicial cooperation.

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The premise of market opening is that the government can supervise in peacetime, intervene in case of incidents, and ensure service continuity and public rights.