Lina Hope
The Committee representing international business interests in Taiwan has issued a comprehensive set of recommendations aimed at accelerating the nation’s digital transformation, urging the government to modernize regulatory frameworks to support artificial intelligence, telecommunications resilience, and the burgeoning creative economy. In its latest policy brief, the Committee expressed appreciation for the Taiwan government’s ongoing efforts to advance key priorities such as cyber resilience and economic modernization but warned that maintaining legacy regulatory models could stifle innovation and weaken Taiwan’s global competitiveness. As Taiwan positions itself as a regional hub for content creation and high-tech infrastructure, the Committee emphasizes that the intersection of telecommunications, AI, and the media sector will define the island’s economic trajectory over the next decade.
The Convergence of Infrastructure and Artificial Intelligence
At the heart of the Committee’s proposal is the establishment of a comprehensive telecommunications ecosystem designed specifically to facilitate the development and application of artificial intelligence. Telecommunications infrastructure is no longer viewed merely as a utility but as the essential backbone of digital competitiveness. However, the industry faces significant headwinds. Despite their critical role in voice, data, and multimedia transmission, Taiwan’s domestic operators possess a scale significantly smaller than that of international giants. This disparity is compounded by escalating geopolitical risks and the immense capital expenditure required for technological upgrades.
To ensure that the industry can drive national digitalization goals and enterprise AI transformation, the Committee recommends a shift toward continuous incentives and a reduction in regulatory burdens. Historically, Taiwan’s telecommunications sector has been subject to stringent oversight designed for a monopoly or duopoly era. In the current landscape, where diverse digital players offer similar communication services at lower costs, the Committee argues that continued heavy-handed regulation of traditional operators creates an unlevel playing field. Amending these regulations is seen as a prerequisite for fostering a cooperative environment that supports green sustainability, cybersecurity transformation, and network resilience.
Strengthening Digital Resilience and the 2025 Infrastructure Cliff
A critical component of Taiwan’s national security and economic stability is its digital resilience, particularly concerning submarine cables. These cables serve as the primary link between Taiwan, its outlying islands, and the global community. As geopolitical tensions in the region rise, the operating costs for maintaining and protecting this infrastructure have surged. The Committee highlighted that the government’s "Forward-looking Infrastructure Development Program," which has provided vital support for connectivity, is slated to expire in 2025.
The potential expiration of these subsidies raises concerns about the continuity of mobile communication quality, especially in rural and underserved areas. To mitigate this, the Committee urges the government to implement new, long-term support mechanisms. This includes not only financial subsidies but also a streamlined regulatory approach to spectrum management. The scarcity of spectrum resources necessitates early planning for the B5G (Beyond 5G) and 6G eras.
6G is envisioned as an "AI-native" network architecture, utilizing intelligent resource scheduling and automated maintenance to improve efficiency. This technology is expected to offer self-repair capabilities and enhanced anti-interference measures, which are vital for critical infrastructure and enterprise private networks. The Committee recommends that the government facilitate the construction of 5G Standalone (SA) networks immediately while laying the groundwork for 6G by refarming or releasing mobile and satellite spectrums, specifically citing the 700 MHz, 900 MHz, and 1800 MHz bands that are set to expire in 2030.
Balancing Personal Data Protection with the Data Economy
Taiwan’s "Smart Nation 2.0" strategy depends heavily on the ability to leverage data for AI applications. While the Committee acknowledged the importance of the Personal Data Protection Act, it raised alarms regarding overly rigid protection measures. Without flexible implementation, there is a risk that Taiwan could fall behind other advanced economies in the data-driven market.
The recommendation calls for the newly established Personal Data Protection Commission to adopt international best practices, such as "sandbox" mechanisms and clear regulations on data de-identification. By soliciting industry input during the system design process, the government can ensure that privacy safeguards do not become barriers to innovation. This balanced approach is deemed essential for the development of smart services and the broader data economy.
Modernizing Media and Video-on-Demand (VOD) Regulations
The media landscape in Taiwan is undergoing a radical shift as consumers move from traditional broadcast and cable TV to personalized, on-demand digital content. The Committee pointed out that existing regulations for satellite broadcasting and cable TV are increasingly outdated and place traditional operators at a disadvantage. They advocate for a "light-touch" regulatory approach by the National Communications Commission (NCC), treating channel operators and digital content providers with parity.
Regarding the Over-the-Top (OTT) TV sector, the Committee views international streaming platforms not just as distributors but as major investors in Taiwan’s local creative ecosystem. These platforms support jobs, skill development, and the global projection of Taiwan’s cultural soft power. However, there is a concern that the government might extend legacy broadcasting frameworks to OTT services.
The Committee argues that OTT platforms—particularly subscription-based video-on-demand (SVOD) services—operate under fundamentally different business models than traditional TV. Most of these platforms already implement robust self-regulatory measures, including parental controls and content ratings. Introducing prescriptive or quasi-mandatory requirements could increase compliance burdens and deter international investment. Instead, the Committee recommends that Taiwan align its regulatory environment with international standards to remain an attractive destination for global content supply chains.
Expanding Telemedicine through 5G Connectivity
The technological characteristics of 5G—high speed, low latency, and massive connectivity—present a unique opportunity to bridge the gap in medical resource allocation between urban and rural areas. While Taiwan has a world-class healthcare system, the development of telemedicine has been hampered by regulatory constraints.
The Committee’s recommendations to the Ministry of Health and Welfare include loosening restrictions on the types of patients eligible for remote care and expanding the list of permissible medical procedures conducted via telecommunications. By leveraging 5G to expand nationwide telemedicine coverage, Taiwan can improve healthcare accessibility for geographically constrained populations while fostering a new sector for digital health innovation.
Combating Online Piracy and Strengthening IP Enforcement
Effective copyright protection is described as the lifeblood of the creative economy. While Taiwan has made strides in its legal framework, online piracy remains a persistent threat. The Committee noted that criminal cases against piracy operations often take years to conclude, and even successful prosecutions often fail to seize illegal proceeds or effectively disable infringing domains.
The current administrative enforcement, coordinated through the Taiwan Network Information Center (TWNIC), is often criticized for being too slow to keep pace with the speed of digital infringement. The Committee suggests that Taiwan look to regional models in South Korea, Malaysia, and Indonesia, which have adopted centralized, "one-stop" administrative frameworks for expedited site-blocking. Furthermore, the proliferation of Illicit Streaming Devices (ISDs) poses not only a threat to intellectual property but also to consumer cybersecurity, as these devices are frequently bundled with malware. Strengthening enforcement against the sale and distribution of ISDs is a high priority.
Transparency in Music Licensing and Royalty Governance
The final pillar of the Committee’s recommendations focuses on the collective management of music copyrights. A predictable and balanced royalty rate-setting process is essential for digital content services like music streaming platforms. Currently, the process in Taiwan is often viewed as lacking transparency and meaningful user participation, leading to protracted disputes and market uncertainty.
Referencing systems in Japan and South Korea, the Committee suggests that Taiwan’s regulatory framework should require the advance disclosure of rate-setting methodologies and allow for stakeholder input before new rates take effect. Such procedural safeguards would ensure that the licensing ecosystem remains fair and conducive to investment, preventing "post-hoc" reviews from creating financial instability for digital service providers.
Analysis of Implications: A Forward-Looking Policy Environment
The overarching theme of the Committee’s report is the need for a forward-looking policy approach that emphasizes "meaningful stakeholder engagement" before new requirements are introduced. The implications of these recommendations are profound: if adopted, they could catalyze a new era of growth for Taiwan’s tech and creative sectors. Conversely, a failure to modernize could result in "regulatory ceilings" that constrain innovation and lead to a brain drain of creative and technical talent to more adaptive markets.
The Committee concludes that an open, predictable, and innovation-friendly environment is the only way to sustain growth across both traditional and digital services. By focusing enforcement on clearly harmful activities while reducing unnecessary legacy burdens, Taiwan can enhance its cultural influence and global visibility, solidifying its status as a leading digital nation in the 21st century.
As the 2025 deadline for several key infrastructure programs approaches, the dialogue between the government and international industry bodies is expected to intensify. The decisions made in the coming months regarding spectrum planning, AI governance, and media regulation will likely determine Taiwan’s economic resilience and its ability to project soft power on the global stage for decades to come.
Ammar Sabilarrohman
Lina Irawan
