Starlink Regulatory Hurdles Eased in Taiwan: Chunghwa Telecom Seeks Joint Venture and Exclusive Agency

(Taipei, April 14 — Reporter Jiang Ming-yan) Amendments to certain clauses of Taiwan's Telecommunications Management Act are being interpreted by the market as clearing the way for Starlink's entry into Taiwan. Today, Chunghwa Telecom Chairman Chien Chih-cheng stated, 'Some supporting measures would be better,' as the issue involves national security, telecom regulation, and data governance. Chunghwa Telecom is seeking to establish a joint venture subsidiary with Starlink and become its exclusive agent in Taiwan, though the final decision depends on Starlink's willingness.

The Taiwan Communications Association noted that the Legislative Yuan's Transportation Committee is reviewing a draft amendment to Article 36 of the Telecommunications Management Act, a policy move highly relevant to Starlink's potential market access. Current regulations require that the chairman of any entity operating a public telecommunications network using telecom resources must be a national of the Republic of China, with foreign direct ownership capped at 49% and combined direct and indirect ownership not exceeding 60%. Some draft proposals aim to introduce exceptions or relaxation mechanisms specifically for satellite communications operators.

Today, Chunghwa Telecom, together with its subsidiary SmartFun Digital Technology, launched Taiwan's first full-cast audiobook adaptation of Keigo Higashino's 'The Miracles of the Namiya General Store.' After the event, Chairman Chien commented on the regulatory relaxation, saying, 'Supporting measures would be helpful,' given the concerns around national security, telecom oversight, and data governance. 'If Starlink could establish a local company in Taiwan, these issues would be easier to manage.'

He pointed out that satellite phones involve phone number allocation, and if Starlink collaborates with local telecom operators, number management becomes feasible. Ideally, data traffic should be processed in Taiwan by a local operator or its subsidiary—such coordination would be ideal.

When asked whether Chunghwa Telecom hopes to form a joint venture with Starlink for exclusive representation in Taiwan, Chien stated that no option is ruled out, including agency or joint venture models, though he leans toward exclusive agency. Ultimately, it depends on Starlink's willingness.

He further emphasized that, from a regulatory standpoint, Starlink should establish a local entity and ground stations in Taiwan and collaborate with telecom operators to manage numbering and frequency issues. In Japan and South Korea, Starlink has adopted a phased market entry approach. 'It would be better if Taiwan could follow a similar model,' he said.

Chien suggested a phased rollout: initially opening internet access services, with voice communication features introduced later. For Chunghwa Telecom, low Earth orbit (LEO) satellites are essential to enhance network resilience, and Starlink, with the largest satellite constellation currently available, is the preferred partner. While exclusive agency is the goal, Starlink's commercial considerations will be decisive.

Regarding perceptions that Starlink views Taiwan's market as too small and its 4G/5G infrastructure too advanced to justify entry, Chien noted that Taiwan is a highly concentrated population market where consumer demand for LEO satellite services is inherently limited. However, from a broader national perspective, satellite services can support diverse applications beyond consumer use, enabling service diversification.

On the topic of Taiwan Mobile reporting the highest EPS among telecom operators in the first half of the year, Chien acknowledged Chunghwa Telecom's solid performance, noting that while its EPS may not be the highest, its absolute profit remains the largest—'even combined, the two don't surpass Chunghwa Telecom.' He congratulated competitors but affirmed Chunghwa Telecom's commitment to continuous improvement and moderate financial optimization. (Editor: Chang Liang-chih) 1150714