Taiwan’s Legislative Yuan passed amendments to the Telecommunications Management Act in a third reading on July 21, easing regulatory restrictions that have posed challenges for foreign satellite communications operators, including Starlink, seeking to enter the Taiwan market. In a recent report on the regulatory reform, Agence France-Presse (AFP) cited analysis from the Research Institute for Democracy, Society and Emerging Technology (DSET), highlighting that low Earth orbit (LEO) satellite operators will still face a range of practical challenges before launching services in Taiwan.
Under Taiwan’s current Telecommunications Management Act, public telecommunications enterprises that establish and operate networks utilizing telecommunications resources are subject to restrictions requiring the chairperson to hold Republic of China (Taiwan) nationality. The law also limits foreign ownership to no more than 49 percent through direct investment and 60 percent through combined direct and indirect ownership.
The newly passed amendments allow operators that receive approval from relevant authorities to be exempt from certain restrictions, including requirements related to the nationality of the chairperson and foreign ownership limits. The reform has drawn attention as it could create more favorable conditions for foreign satellite communications providers, including Starlink, to explore opportunities in Taiwan.
AFP noted that, amid growing security concerns arising from China’s military pressure, Taiwan has been working to strengthen communications resilience and develop diversified satellite communication capabilities, partly drawing lessons from Ukraine’s experience. Taiwan’s largest telecommunications operator, Chunghwa Telecom, has already partnered with international satellite providers such as Eutelsat, while Starlink has yet to launch services in Taiwan. SpaceX previously stated in 2024 that negotiations with Taiwan had not moved forward due in part to restrictions under Taiwan’s foreign ownership regulations.
According to AFP, even after the regulatory barriers are removed, Starlink’s potential expansion into Taiwan remains uncertain.
DSET National Security Program Policy Analyst Cathy Fang noted that while the amendment removes a significant legal obstacle, LEO satellite operators entering the Taiwan market will still need to address multiple operational considerations. These include spectrum access, ground infrastructure, terminal equipment deployment, cybersecurity and data governance requirements, as well as market size and commercial viability.
AFP also cited Taiwan’s Minister of Digital Affairs Lin Yi-ching, who previously stated that Starlink had indicated limited interest in the Taiwan market, partly due to Taiwan’s highly developed telecommunications infrastructure. With 4G and 5G mobile network coverage reaching more than 99.9 percent of the population, the commercial potential of the Taiwanese market may be comparatively limited.
The report further noted that while Starlink operates thousands of satellites in orbit and maintains a leading position in the global satellite communications sector, concerns surrounding the company’s past restrictions on Ukraine’s use of its services during wartime, as well as SpaceX CEO Elon Musk’s business ties with China and related public statements, have contributed to continued public scrutiny in Taiwan.
DSET’s National Security Program continues to monitor developments related to Taiwan’s communications resilience, satellite connectivity, and emerging technology security. DSET will continue to provide policy analysis and recommendations on relevant regulatory and industry developments.
