Will Starlink Enter Taiwan? Legislative Yuan's Preliminary Approval Eases Foreign Ownership Restrictions in Telecom Management Act

(Central News Agency reporter Chen Chun-hua, Taipei, 13th) To promote satellite communication services and industry development, Taiwan's Legislative Yuan Transportation Committee today preliminarily passed amendments to selected articles of the Telecommunications Management Act. Upon approval by the competent authority, restrictions on the nationality of the chairman and foreign ownership ratios for applicants seeking to establish public telecommunications networks using telecommunications resources will be relaxed.

The Legislative Yuan Transportation Committee invited acting NCC Chairperson Chen Chong-shu and Digital Development Minister Lin Yi-ching to attend today's session to review proposed amendments to the Telecommunications Management Act submitted by Kuomintang legislators Huang Chien-hao, Ko Ju-chi, Lin Chien-chi, Chiu Chen-chun, Yeh Yuan-chih, and Democratic Progressive Party legislator Lin Chun-hsien.

Under the current Telecommunications Management Act, operators establishing public telecommunications networks using telecommunications resources must have a chairman with Republic of China nationality. Direct foreign ownership is limited to no more than 49%, and the combined direct and indirect foreign ownership must not exceed 60%.

Media reports indicate that certain proposed amendments include exceptions or relaxation mechanisms specifically for satellite communication operators, raising speculation about the potential entry of SpaceX's Starlink into Taiwan.

Legislator Huang Chien-hao argued that Taiwan's external communications heavily rely on submarine cables, while internal communications depend on terrestrial base stations and fiber-optic networks. Introducing low-Earth orbit satellite communication systems could complement existing infrastructure and ensure reliable and secure communications during emergencies, thereby enhancing the resilience of the overall communications network.

The preliminarily approved amendment stipulates that applicants seeking to establish public telecommunications networks using satellite communication technology may, upon review and approval by the competent authority based on national security, public network security, telecommunications resource utilization, and industry development, be exempt from the requirements regarding the chairman's nationality and foreign ownership limits.

The committee also passed a supplementary resolution, noting that the amendment will significantly ease foreign investment in the telecommunications market, affecting regulatory frameworks, national security review mechanisms, information and communications security standards, data governance requirements, obligations to assist in communications surveillance, and disaster prevention and emergency communication systems. It therefore urges the competent authority to make the domestic establishment of satellite ground receiving stations and data localization key considerations. (Editor: Yang Kai-hsiang) 1150713

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