Taiwan Eases Telecom Rules, Clearing Path for Starlink Entry

Taiwan's Legislative Yuan has passed amendments to the Telecommunications Management Act, a move widely interpreted as paving the way for Starlink's entry into the Taiwanese market. The revised law significantly relaxes restrictions on foreign investment in public telecommunications networks, particularly for companies utilizing satellite communication technology.

Under the previous regulations, the chairperson of a public telecommunications network operator had to be a Taiwanese national, and foreign direct ownership was capped at 49%, with total direct and indirect foreign ownership limited to 60%. The newly passed amendments allow for exemptions from these requirements, provided that the national security, public telecommunications network security, and other public interest considerations are reviewed and approved by the relevant authorities.

Lawmakers highlighted the strategic importance of introducing low-orbit satellite communication systems. They argued that such systems can complement Taiwan's existing communication infrastructure, which heavily relies on undersea cables and terrestrial base stations. This diversification is seen as crucial for enhancing the overall resilience of the communication network and ensuring connectivity, especially during emergencies.

Two key accompanying resolutions were also adopted. The first calls for comprehensive regulations concerning mobile and device-to-satellite services, addressing issues such as service substitution, data transmission, cross-border governance, and cybersecurity, before such services are fully implemented. The second resolution mandates that the authorities consider establishing satellite ground receiving stations and ensuring that data is stored within Taiwan as critical conditions when relaxing foreign investment limits in the telecommunications sector.

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Introducing low-orbit satellite communication systems can complement existing communication infrastructure and ensure a usable and secure communication network during emergencies, thereby enhancing overall communication network resilience.