Taiwan's legislature cleared a key preliminary hurdle on July 13 for draft amendments that would ease two-decade-old restrictions on foreign participation in the country's telecom sector — a legislative push widely understood to pave the way for SpaceX's Starlink to operate in Taiwan.
The Legislative Yuan Transportation Committee passed the first reading of proposed revisions to the Telecommunications Management Act. Currently, the law requires that any company operating a licensed public telecommunications network using telecom resources appoint a chairperson holding Republic of China nationality, while capping foreign direct shareholding at 49% and combined direct and indirect foreign stakes at 60%. The draft revisions would allow satellite communications operators to seek exemptions from both requirements, subject to regulatory review of national security, network security, telecom resource usage, and industry development considerations.
National Communications Commission (NCC) Acting Chairperson Chen Chung-shu (陳崇樹) and Minister of Digital Affairs Lin Yi-ching (林宜敬) both attended the committee session. The amendments were co-sponsored by legislators from both the Kuomintang (國民黨, KMT) and the Democratic Progressive Party (DPP), including KMT lawmakers Huang Chien-hao (黃健豪), Ko Ju-chun (葛如鈞), Lin Chien-chi (林倩綺), Chiu Chen-chun (邱鎮軍), and Yeh Yuan-chih (葉元之), as well as DPP legislator Lin Chun-hsien (林俊憲).
Chunghwa Telecom Positions Itself as Starlink's Exclusive Partner
Taiwan's largest telecom operator moved swiftly to signal its interest in the opening. Chunghwa Telecom (中華電信) Chairman Chien Chih-cheng (簡志誠) told reporters on July 14 that the company is actively seeking to form a joint venture subsidiary with Starlink and serve as its exclusive distributor in Taiwan, though he acknowledged the final decision rests with Starlink.
"We're not ruling out any possibility — whether agency arrangement or joint venture — but we lean toward exclusive agency," Chien said. He noted that satellite phone services raise subscriber numbering questions that a local partnership would resolve. "The best scenario is for the signal to be handled locally, by a domestic operator or its subsidiary — that would be more ideal."
Chien pointed to Japan and South Korea as instructive precedents. In both markets, Starlink adopted a phased licensing approach that required establishing a local legal entity, building ground stations, and cooperating with domestic carriers on numbering and spectrum allocation. "If Taiwan can follow the same approach," he said, "that would be ideal."
Lawmakers Attach Data Localization and Security Conditions
The committee also passed a supplementary resolution expressing concern that relaxing foreign investment limits could have far-reaching consequences for Taiwan's regulatory architecture. The resolution specifically flagged potential impacts on national security review mechanisms, information security frameworks, data governance obligations, communications interception requirements, and emergency communications infrastructure.
In response, legislators directed the competent authority to treat the physical placement of satellite ground receiving stations and in-country data localization as mandatory considerations in any future licensing process — effectively requiring that data generated by satellite communications not be routed entirely offshore. Chien echoed this view, saying that a properly structured partnership arrangement would ensure that "there are safeguards in place," describing compliance coverage as the "more complete" outcome.
Taiwan's Undersea Cable Vulnerability Drives the Case for LEO Satellites
The strategic rationale for opening the market to low-earth orbit satellite operators was articulated by KMT legislator Huang Chien-hao, one of the amendment's co-authors. Taiwan's external communications depend almost entirely on undersea cables, while domestic connectivity relies on ground-based cell towers and fiber optic networks — both inherently vulnerable to physical disruption in a crisis scenario. Introducing a LEO satellite layer, he argued, would complement the existing infrastructure and ensure reliable communications remain available during emergencies, strengthening overall network resilience in ways that ground-based systems alone cannot guarantee.
