Lina Irawan
The Committee representing international business interests in Taiwan has released a comprehensive set of policy recommendations aimed at fortifying the island’s position as a global leader in digital innovation and creative content. While the Committee expressed its appreciation for the Taiwan government’s ongoing efforts to prioritize digital transformation, artificial intelligence (AI), and cyber resilience, it underscored the urgent need for a regulatory overhaul to match the rapid pace of technological evolution. As Taiwan navigates a complex geopolitical landscape and seeks to cement its status as a regional hub for content creation, the Committee argues that transitioning away from legacy regulatory models toward a flexible, risk-based framework is no longer optional but a necessity for sustained economic growth and soft power development.
The Foundation of Digital Modernization: A Robust Telecommunications Ecosystem
At the heart of Taiwan’s digital ambitions lies its telecommunications infrastructure. The Committee identifies this sector as the backbone of the nation’s digital competitiveness, facilitating everything from basic voice services to the high-speed data transmission required for AI-driven enterprise transformation. However, despite its critical role, Taiwan’s domestic telecommunications operators face a daunting environment. Compared to international giants, local operators have a smaller scale and are currently grappling with escalating geopolitical risks and significant operational pressures.
To address these challenges, the Committee recommends that the government provide continuous incentives and rewards designed to reduce regulatory burdens. Such measures would improve the development environment for the digital industry, allowing operators to focus on driving national digitalization goals. Furthermore, the strengthening of digital resilience—particularly through the protection and expansion of submarine cables—is highlighted as a top priority. As Taiwan’s primary link to the global internet and its outlying islands, submarine cables are vital to national security and economic continuity. With the "Forward-looking Infrastructure Development Program" set to expire in 2025, the Committee urges the government to maintain and expand subsidies for telecommunications operators, particularly to ensure high-quality mobile communication in rural and underserved areas.
Strategic Spectrum Planning and the Transition to 6G
As the global race for connectivity intensifies, the Committee emphasizes that early and effective spectrum planning is vital. With the telecommunications industry in Taiwan having undergone recent consolidation and restructuring, the market has entered a phase of intense competition and strategic cooperation. The Committee advises that spectrum refarming and release strategies should not only follow international trends but also account for the specificities of the Taiwan market, consumer demand, and the current geopolitical situation.
A significant portion of the recommendations focuses on the transition toward 6G technology. Described as an "AI-native" network architecture, 6G is expected to revolutionize efficiency through intelligent resource scheduling and automated maintenance. The Committee notes that 6G’s capacity for real-time monitoring, anomaly warning, and self-repair will be a core competitive advantage for operators developing enterprise private networks and critical infrastructure. To lay the groundwork for this future, the government is encouraged to facilitate the construction of 5G Standalone (SA) networks and implement the re-release of key frequency bands, such as the 700 MHz, 900 MHz, and 1800 MHz bands, which are set to expire in 2030. Aligning these releases with international best practices will ensure Taiwan remains at the forefront of global telecommunications standards.
Balancing Data Protection with the Data Economy
In the realm of data governance, the Committee advocates for a more flexible implementation of the Personal Data Protection Act. While acknowledging the paramount importance of safeguarding citizen privacy, the Committee warns that overly rigid protection measures can inadvertently stifle the development of AI applications and smart services. This tension threatens to delay the implementation of the "Smart Nation 2.0" strategy and could widen the gap between Taiwan and other advanced economies in the data-driven sector.
The Committee recommends that the newly established Personal Data Protection Commission engage in deep study of international legislative trends and actively solicit industry feedback. Key areas for development include the creation of robust personal data de-identification standards and the establishment of "sandbox" mechanisms. These initiatives would allow companies to experiment with data-driven innovations in a controlled environment, ensuring that the growth of the data economy and the protection of personal privacy are pursued in a coordinated, mutually reinforcing manner.
Modernizing Media and Content Distribution Regulations
As consumer behavior shifts toward personalized, on-demand content, Taiwan’s media sector is undergoing a profound transformation. The Committee notes that current regulations for satellite broadcasting and cable TV are increasingly outdated and fail to reflect modern market realities. These stringent requirements often put traditional channel operators at a distinct disadvantage compared to new digital service providers.
The Committee urges the National Communications Commission (NCC) to adopt a "light-touch" regulatory approach. This would involve affording equal treatment to channel operators and other content service providers, fostering a more competitive and vibrant media landscape. Furthermore, the Over-the-Top (OTT) TV sector—a major driver of Taiwan’s creative economy—requires a policy environment that encourages international investment rather than constraining it with legacy broadcasting frameworks. International OTT platforms are not merely distributors; they are significant investors in local productions, supporting thousands of jobs and enhancing Taiwan’s cultural soft power globally.
The Committee warns against the extension of prescriptive regulations to professionally generated content (PGC) and subscription video-on-demand (SVOD) services. Most of these platforms already utilize mature self-regulatory safeguards, such as content ratings and parental controls. Imposing additional, duplicative classification systems or intrusive compliance requirements could deter investment and disrupt Taiwan’s integration into global content supply chains.
Enhancing Copyright Enforcement and Intellectual Property Rights
Effective copyright protection is identified as a cornerstone of the creative economy. While Taiwan has made strides in strengthening its legal framework, online piracy remains a persistent threat to legitimate digital services. The Committee highlights significant enforcement gaps, noting that criminal cases involving piracy often take years to resolve. Even when successful, the lack of immediate action to seize illegal proceeds or disable infringing domains allows piracy operations to quickly re-emerge.
The current administrative mechanisms for site-blocking, coordinated through the Taiwan Network Information Center, are described as insufficiently responsive to the speed of digital piracy. The Committee suggests that Taiwan look to regional neighbors like South Korea, Malaysia, and Indonesia, which have adopted centralized, one-stop administrative frameworks for expedited review and action. Additionally, the proliferation of illicit streaming devices (ISDs) is flagged as a dual threat to both intellectual property and cybersecurity. Strengthening enforcement against the sale and distribution of these devices is essential for protecting consumers from malware and ensuring a fair market for content creators.
Reforming Music Licensing and Royalty Governance
The Committee also addressed the complexities of music licensing in the digital age. A transparent and balanced collective management framework is essential for ensuring that both rightsholders and users can thrive. In Taiwan, the royalty rate-setting process is often viewed as lacking transparency and meaningful user participation, which can lead to disputes and market uncertainty.
Drawing on experiences from Japan and South Korea, the Committee recommends that Taiwan’s regulatory framework incorporate advance disclosure of rate-setting methodologies and provide structured opportunities for stakeholder input. By improving the governance of Collective Management Organizations (CMOs) and ensuring that rate-setting is subject to appropriate oversight, the government can reduce compliance risks and encourage further investment in legitimate music distribution services.
Broader Implications and the Path Forward
The recommendations provided by the Committee serve as a strategic roadmap for Taiwan to navigate the intersection of technology, culture, and regulation. By embracing a forward-looking policy approach—characterized by stakeholder engagement, risk-based principles, and flexible governance—Taiwan can enhance its attractiveness as a destination for global investment.
The broader impact of these reforms would extend beyond the economy. Strengthening the creative ecosystem and telecommunications resilience directly supports Taiwan’s soft power, allowing its cultural content to reach a wider international audience and ensuring its digital infrastructure can withstand modern threats. As the government evaluates these suggestions, the Committee emphasizes that the goal is to create an environment where innovation can flourish, ensuring that Taiwan remains a vital and competitive player in the global digital and creative marketplace. The transition from a legacy-focused regulatory mindset to an innovation-friendly one will be the deciding factor in whether Taiwan can truly realize its ambitions as a "Smart Nation."
Asep Darmawan
Evan Lee Salim
