Taiwan’s Legislative Yuan’s Transportation Committee passed, in its first review, a draft amendment to Article 36 of the Telecommunications Management Act. The draft grants the competent authority special approval power for applicants that set up networks via satellite communications, allowing them to be exempt from restrictions under current regulations. The move is viewed by the market as a key policy loosening to attract international satellite communications providers such as SpaceX’s Starlink.
Draft Amendment to Article 36 of the Telecommunications Management Act: Easing Foreign Equity Holding Limits for Satellite Operators
According to the draft amendment, when the competent authority grants special approval, the seven major criteria that must be strictly reviewed include:
· Geopolitical security
· Security of public telecommunications networks
· Use of telecommunications resources
· Overall planning of telecommunications networks
· Development of the telecommunications industry and services market
· Need for public interest
· Other relevant requirements
This amendment breaks down long-standing barriers to foreign investment, aiming to build a more resilient legal and regulatory environment to attract international low-Earth-orbit satellite operators to enter Taiwan lawfully, while still preserving the review and gatekeeping mechanism under the competent authority.
Statements from the Three Major Telecom Operators: Support the Amendment, While Emphasizing Geopolitical Security, Data Sovereignty, and User Privacy Must Be Protected
According to reports, the positions of Taiwan’s three major telecom operators on this amendment are as follows:
· Chunghwa Telecom said that international operators’ participation will enhance disaster prevention and emergency communication backup capabilities, and it hopes to connect Taiwan’s satellite terminals and networking equipment with other local supply chains to expand into international markets;
· Taiwan Mobile emphasized that promoting the lawful landing of international satellite operators must be premised on ensuring the highest level of protection for industry governance, data sovereignty, and user privacy;
· Far EasTone Telecom suggested that supporting measures such as data localization, setting up ground reception stations, and cooperating with local operators should be included in legal regulations.
Taiwan Association of Communications Recommends Taking Cues from the Japanese Model
According to reports, the Taiwan Association of Communications warned that if communications surveillance, anti-fraud, cybersecurity, and exit mechanisms are not established in parallel, it could increase long-term governance risks; its chairperson, Wang Weijing, suggested referencing the real-world practice of conditional, phased opening of split regulation based on Japan’s KDDI, NTT DOCOMO, and SoftBank’s cooperation with Starlink for mobile direct-to-satellite services.
Specific recommendations include: international operators should, in principle, establish in Taiwan an incorporated entity capable of fulfilling its responsibilities; if it involves mobile direct-to-satellite or use of Taiwan’s mobile frequencies and number resources, then it should be mandatory to cooperate with locally licensed telecom operators; and Taiwan should set up domestic ground stations or nodes with equivalent effect.
FAQ
After Taiwan’s Telecommunications Management Act amendment is passed, can Starlink directly set up services in Taiwan?
According to the draft amendment, when satellite communications operators apply, the competent authority may grant approval on a special basis, exempting current restrictions on foreign equity holdings and the nationality of responsible persons. However, they still must undergo a strict review covering seven major criteria including geopolitical security and telecommunications network security; although this passed the first review, it still needs to complete subsequent legislative procedures.
What role does D-Link play in Starlink’s supply chain?
According to reports, D-Link has confirmed that it has obtained a special project order for Starlink’s “low-Earth-orbit satellite network data exchange node-dedicated switches.” It is expected to begin shipping in September 2026, with the estimated shipment volume reaching 20,000 units in the first year and a total planned quantity of 50,000 units. Driven by this news, D-Link’s stock hit the daily limit up for three consecutive trading days.
What are the main concerns of the three major telecom operators regarding the amendment to the Telecommunications Management Act?
According to reports, Chunghwa Telecom, Taiwan Mobile, and Far EasTone Telecom all expressed support, but they jointly emphasized the need to protect geopolitical security, data sovereignty, and user privacy. Far EasTone Telecom specifically suggested that measures such as data localization, setting up ground reception stations, and cooperating with local operators should be included in legal regulations.
