Taiwan Communications Association: Low-Earth Orbit Satellite Access Requires Balancing Openness with National Security and Regulatory Oversight

(Taipei, April 13 — Reporter Chao Min-ya) The Transportation Committee of Taiwan's Legislative Yuan today passed the initial review of amendments to parts of the Telecommunications Management Act. The market interprets this as a potential breakthrough for Starlink's entry into Taiwan. The Taiwan Communications Association issued a press release stating that while introducing diverse low-Earth orbit (LEO) satellite services is necessary, any regulatory adjustments must be grounded in national security, local regulatory oversight, and public interest.

The Transportation Committee of the Legislative Yuan passed the initial review of amendments to the Telecommunications Management Act. The draft amendment specifies that applicants seeking to establish and operate public telecommunications networks using satellite communication technology may be exempt from restrictions on the chairperson’s nationality and foreign ownership ratios, provided the competent authority reviews and approves the application based on national security, public network security, telecommunications resource utilization, and industry development.

The Taiwan Communications Association noted that today’s review of the amendment to Article 36 of the Telecommunications Management Act is highly relevant to whether Starlink can enter Taiwan. Current regulations require that the chairperson of a public telecommunications network using telecommunications resources must be a national of the Republic of China, with direct foreign ownership capped at 49% and combined direct and indirect ownership not exceeding 60%. The proposed amendment introduces exceptions or relaxation mechanisms specifically for satellite communication operators.

The Association emphasized its support for introducing diverse LEO satellite services but warned that enhancing communication resilience should not come at the cost of weakening national regulatory capacity. If only foreign ownership and leadership eligibility restrictions are relaxed, without simultaneously establishing national security reviews, local operations, data governance, communications surveillance, fraud prevention, cybersecurity, and exit mechanisms, a gap may emerge between market openness and public accountability, increasing long-term governance risks.

The Association stressed that policy discussions should not target specific companies but should instead adhere to principles of technological neutrality, risk proportionality, and public interest.

Wang Wei-ching, Chairperson of the Taiwan Communications Association, stated that Taiwan needs diverse satellite services, but critical communication control, user data governance, and legal responsibility must be integrated into a locally enforceable and supervisable framework. While satellite services can be cross-border, responsibility cannot be offshored. Market openness must ensure that the government can supervise under normal conditions and intervene during emergencies to guarantee service continuity and public rights.

Wang cited Japan as an example, where KDDI, NTT DOCOMO, and SoftBank have all launched mobile-to-satellite direct connectivity services in partnership with Starlink, integrating satellite capabilities into local telecom services and public safety systems. The Association recommends adopting a similar tiered regulatory approach, with conditional and phased market opening.

The Association pointed out that international satellite operators entering the Taiwan market should, in principle, establish a legal entity in Taiwan with substantial operational and accountability capabilities. Operators providing mobile-to-satellite services or using Taiwan’s mobile frequencies, numbers, or core network resources should collaborate with licensed local telecom operators. These operators should also set up ground stations, gateways, or equivalent regulatory nodes in Taiwan and clearly assume responsibilities for user service, emergency communications, personal data protection, cybersecurity, fraud prevention, and judicial cooperation.

The Association stated that the competent authority should establish transparent and verifiable review criteria regarding operator control, supply chain security, data flows, service continuity, and consumer protection, and retain necessary mechanisms such as imposing conditions, requiring corrective actions, suspending services, or revoking licenses.

The Association urges the Legislative Yuan to comprehensively review national security, regulatory enforcement, and public interest safeguards before relaxing foreign ownership and leadership qualification restrictions. It calls for open discussions to establish a sustainable regulatory framework that enables LEO satellites to serve as a critical backup for Taiwan’s communication resilience while maintaining a governance system that is supervisable, intervenable, and accountable. (Edited by Yang Kai-xiang) 1150713