Lina Irawan
In a comprehensive assessment of Taiwan’s digital landscape, the Digital Economy and Media Committee has underscored the critical need for the Taiwan government to modernize its regulatory frameworks to sustain its competitive edge in artificial intelligence (AI), telecommunications, and the creative industries. While the Committee expressed appreciation for the government’s ongoing efforts in digital transformation and cyber resilience, it warned that maintaining legacy regulatory models for emerging technologies could stifle innovation and deter international investment. The Committee’s recommendations arrive at a pivotal moment as Taiwan seeks to transition from a hardware-centric economy to a global hub for content creation, data-driven services, and AI-native infrastructure.
Strengthening the Telecommunications Foundation for an AI-Driven Future
The backbone of Taiwan’s digital competitiveness lies in its telecommunications infrastructure. As the world moves toward an AI-native era, the Committee emphasizes that telecommunications operators are no longer merely providers of voice and data; they are the essential facilitators of enterprise AI transformation. However, despite their strategic importance, Taiwan’s operators face significant challenges, including a market scale far smaller than global giants and escalating geopolitical risks.
To address these pressures, the Committee recommends a robust system of continuous incentives and rewards aimed at reducing regulatory burdens. The goal is to create an environment where operators can focus on driving national digitalization rather than navigating complex administrative hurdles. This is particularly relevant as the industry moves toward 6G technology. Unlike previous generations, 6G is envisioned as an AI-native network architecture, utilizing intelligent resource scheduling and automated maintenance to improve network resilience.
A key concern raised is the scarcity of spectrum resources. The Committee urges the government to complete B5G and 6G spectrum planning as soon as possible, citing international best practices. Specifically, plans for the re-release of frequency bands expiring in 2030—including the 700 MHz, 900 MHz, and 1800 MHz bands—should be implemented promptly. Furthermore, the release of new Sub-1 GHz frequency bands is seen as vital for ensuring deep coverage and supporting the critical infrastructure services that will underpin Taiwan’s future economy.
Enhancing Digital Resilience and Infrastructure Continuity
Taiwan’s geographic and geopolitical position makes digital resilience a matter of national security. Submarine cables serve as the primary link between the main island, outlying territories, and the global internet. The Committee noted that rising geopolitical tensions and complex regulations have significantly increased operating costs for cable maintenance and deployment.
The urgency is compounded by the scheduled expiration of the government’s “Forward-looking Infrastructure Development Program” in 2025. This program has been instrumental in subsidizing telecommunications operators to improve mobile communication quality in rural and underserved areas. The Committee argues that these subsidies must continue beyond 2025 to prevent a widening digital divide and to ensure that Taiwan’s infrastructure can withstand both natural disasters and regional instability.
Furthermore, the Committee advocates for a more flexible implementation of the Personal Data Protection Act. While acknowledging the importance of privacy, the report warns that overly rigid data protection measures—without supporting mechanisms like data de-identification and regulatory sandboxes—could delay the implementation of Taiwan’s “Smart Nation 2.0” strategy. By soliciting industry input and adopting international legislative trends, Taiwan can foster a data economy that balances public interest with technological advancement.
Modernizing Media Regulation for the Streaming Era
As the media landscape shifts from traditional broadcast to digital and on-demand formats, the Committee has called for a significant overhaul of the regulatory environment for satellite broadcasting and cable TV. The current stringent requirements are increasingly viewed as outdated, placing traditional channel operators at a competitive disadvantage against global digital platforms.
The Committee urges the National Communications Commission (NCC) to adopt a “light-touch” regulatory approach. This model would treat traditional channel operators and modern content service providers more equitably, reducing unnecessary compliance costs and allowing the industry to adapt to changing consumer demands. A supportive policy environment is deemed crucial for Taiwan to achieve its ambition of becoming a regional hub for content distribution.
In the realm of Over-the-Top (OTT) TV services, the Committee warns against extending legacy broadcasting frameworks to these new platforms. International OTT streaming services are not just distributors; they are major investors in local Taiwanese production, contributing to job creation and the global projection of Taiwan’s cultural soft power. The report notes that existing legal frameworks already address consumer protection and privacy, and that additional prescriptive regulation should only be introduced if there is clear evidence of systemic failure. Most OTT platforms already utilize robust self-regulatory mechanisms, such as content ratings and parental controls, which the Committee believes are sufficient for protecting minors without stifling innovation.
Combating Piracy and Improving Intellectual Property Governance
Effective copyright enforcement remains a cornerstone of the creative economy. While Taiwan has made strides in strengthening its legal framework, online piracy continues to evolve, threatening the viability of legitimate digital services. The Committee identified significant enforcement gaps, noting that criminal cases often take years to conclude, and the seizure of illegal proceeds remains infrequent.
A major point of concern is the proliferation of illicit streaming devices (ISDs). These devices not only facilitate copyright infringement but also pose significant cybersecurity risks to consumers, as they are often bundled with malware. The Committee recommends that Taiwan look to regional neighbors like Singapore, South Korea, and Malaysia, which have adopted more proactive, centralized administrative frameworks for site-blocking and enforcement. Streamlining these processes would allow for faster action against rapidly changing illegal streaming domains.
In addition to piracy enforcement, the Committee highlighted the need for greater transparency in music licensing. The current system for setting royalty rates through Collective Management Organizations (CMOs) is often perceived as lacking meaningful user participation and structured dialogue. To foster a fair and efficient licensing ecosystem, the Committee suggests implementing advance disclosure of rate-setting methodologies and allowing for stakeholder input before new rates take effect. This would reduce the likelihood of disputes and create a more predictable environment for digital content services.
Expanding Telemedicine through 5G Integration
The integration of 5G technology into the healthcare sector presents a unique opportunity to bridge the gap in medical resource allocation between urban and rural areas. The Committee recommends that the Ministry of Health and Welfare leverage 5G’s high speed and low latency to expand nationwide telemedicine coverage.
However, regulatory constraints currently limit the full potential of these technologies. The Committee proposes a review of existing policies to allow for more flexible remote consultations and the integration of AI-driven diagnostic tools. By narrowing the gap in medical access, Taiwan can improve public health outcomes while simultaneously positioning itself as a leader in digital health innovation.
Broader Implications for Taiwan’s Economic Trajectory
The recommendations provided by the Committee reflect a broader strategic shift necessary for Taiwan’s long-term prosperity. By transitioning from a focus on legacy regulation to an evidence-based, risk-proportionate approach, Taiwan can attract greater foreign direct investment and nurture its domestic creative ecosystem.
The implications of these policy choices are profound. If Taiwan successfully modernizes its telecommunications and media regulations, it stands to become a dominant force in the global creative economy, leveraging its cultural soft power to reach international audiences. Conversely, failing to adapt to the speed of technological change could result in "regulatory drag," where outdated laws hinder the development of the very industries—AI, digital services, and high-tech content—that Taiwan identifies as its future.
The Committee’s report serves as both a commendation of Taiwan’s progress and a roadmap for its future. As the global digital marketplace becomes increasingly competitive, the need for a forward-looking, innovation-friendly policy environment has never been more urgent. By fostering collaboration between the government, regulatory bodies like the NCC, and industry stakeholders, Taiwan can ensure that its digital infrastructure and creative industries remain resilient, competitive, and globally influential.
Nana Wu
Dwi Wanna
