Iffa Jayyana
The Committee representing major international business interests in Taiwan has issued a comprehensive set of policy recommendations aimed at bolstering the nations digital competitiveness, urging the government to modernize regulatory frameworks to keep pace with rapid advancements in artificial intelligence (AI), telecommunications, and the creative economy. In its latest position paper, the Committee expressed appreciation for the Taiwan government’s ongoing efforts toward digital transformation and cyber resilience but warned that maintaining legacy regulatory models could stifle innovation and hinder Taiwan’s ambition to become a regional hub for content creation and distribution. The report emphasizes that the future of Taiwan’s economic growth is inextricably linked to an interconnected ecosystem where telecommunications infrastructure serves as the backbone for AI applications, while the media and entertainment sectors project Taiwan’s cultural soft power onto the global stage.
A Strategic Vision for the AI-Driven Telecommunications Ecosystem
At the heart of the Committee’s recommendations is the urgent need to establish a comprehensive telecommunications ecosystem that facilitates the development and application of artificial intelligence. While Taiwan’s telecommunications industry is the primary vehicle for voice, data, and multimedia transmission, the Committee noted that local operators face significant scale disadvantages compared to international giants. This disparity is exacerbated by escalating geopolitical risks and the operational pressures of maintaining high-quality service in a volatile regional environment.
To mitigate these challenges, the Committee suggests that the government provide continuous incentives and rewards to reduce regulatory burdens. Such measures are seen as essential for encouraging enterprise AI transformation. Furthermore, the strengthening of digital resilience through robust submarine cable infrastructure is highlighted as a critical priority. As Taiwan’s primary link to the global internet and its outlying islands, submarine cables are vulnerable points of failure that require both protection and streamlined regulatory oversight to manage rising operating costs.
The Committee also pointed to the upcoming expiration of the “Forward-looking Infrastructure Development Program” in 2025. This government initiative has been instrumental in bridging the digital divide, but the Committee argues that subsidies for improving mobile communication in rural areas must continue beyond the program’s end date to ensure equitable digital access. Without continued state support, the burden of national development goals may weigh too heavily on private operators, potentially slowing the rollout of next-generation services.
Preparing for the 6G Era and Spectrum Refarming
As the global race for 6G dominance begins, the Committee is urging Taiwan’s National Communications Commission (NCC) to complete B5G and 6G spectrum planning as a matter of priority. 6G is envisioned as an “AI-native” network architecture, utilizing intelligent resource scheduling and automated maintenance to achieve unprecedented levels of efficiency. Such a network would not only enhance real-time monitoring and self-repair capabilities but also provide a core competitive advantage for Taiwan’s critical infrastructure and enterprise private networks.
The Committee recommends that the government facilitate the construction of 5G Standalone (SA) networks as a foundation for future 6G development. Specifically, the report calls for the early implementation of plans to re-release the 700 MHz, 900 MHz, and 1800 MHz frequency bands, which are set to expire in 2030. By aligning with international best practices and releasing new Sub-1 GHz frequency bands, Taiwan can ensure that its telecommunications industry remains compatible with global standards, attracting further investment from international technology partners.
Balancing Data Privacy with the Data Economy
A significant portion of the report is dedicated to the implementation of the Personal Data Protection Act. While the Committee acknowledges the vital importance of safeguarding citizen privacy, it warns against “overly rigid” protection measures that lack supporting mechanisms for industry. Such rigidity could inadvertently delay the implementation of Taiwan’s “Smart Nation 2.0” strategy and widen the gap between Taiwan and other advanced economies in the field of AI application.
The Committee recommends that the newly established Personal Data Protection Commission adopt a flexible approach, particularly concerning de-identification and “sandbox” mechanisms. By allowing companies to experiment with data in controlled environments, the government can foster a thriving data economy while maintaining high standards of public trust. The report stresses that meaningful stakeholder engagement during the system design process is crucial to creating a regulatory environment that is both protective and pro-growth.
Expanding Telemedicine through 5G Integration
The intersection of healthcare and technology represents a major growth area for Taiwan. The Committee proposes leveraging 5G’s high speed and low latency to expand nationwide telemedicine coverage. Currently, the development of telemedicine in Taiwan is hampered by regulatory constraints that limit the scope of remote medical services. By narrowing the gap in medical resource allocation between urban centers and geographically constrained rural areas, Taiwan can improve public health outcomes while showcasing its technological prowess. The Committee’s recommendations to the Ministry of Health and Welfare (MOHW) include relaxing restrictions on the types of cases eligible for telemedicine and integrating remote care into the national insurance reimbursement framework.
Reforming the Media and VOD Landscape
In the realm of media and entertainment, the Committee is calling for a "light-touch" regulatory approach for satellite broadcasting and cable TV operators. As consumers increasingly shift toward personalized, on-demand content, traditional channel operators find themselves at a disadvantage due to outdated requirements that do not apply to their digital competitors. The Committee argues that extending legacy broadcasting frameworks to modern digital services is an ineffective way to address emerging challenges.
The Over-the-Top (OTT) TV sector is identified as a key driver of Taiwan’s creative economy. International streaming platforms are not merely distributors; they are major investors in local Taiwanese productions, contributing to job creation and skill development within the domestic creative ecosystem. The Committee expressed concern that prescriptive or quasi-mandatory regulations could deter these international players. Instead, the government should rely on existing self-regulatory mechanisms and focus on evidence-based policies. The report notes that most OTT platforms already utilize robust safeguards, such as content ratings and parental controls, making additional layers of government oversight redundant and potentially harmful to innovation.
Combatting Online Piracy and Strengthening Copyright
Effective copyright enforcement remains a cornerstone of a healthy creative economy. Despite Taiwan’s efforts to strengthen its legal framework, online piracy continues to be a persistent threat. The Committee highlighted a significant enforcement gap: criminal cases often take years to resolve, and even successful prosecutions frequently fail to seize illegal proceeds or disable infringing domains.
The report advocates for a more streamlined, "one-stop" administrative framework for site-blocking, citing successful models in South Korea, Malaysia, and Indonesia. By centralizing the coordination between ministries and the Taiwan Network Information Center (TWNIC), the government can respond more rapidly to the scale of modern piracy. Additionally, the proliferation of Illicit Streaming Devices (ISDs) was flagged as a dual threat to intellectual property and cybersecurity. These devices often harbor malware, posing risks to consumer data. The Committee suggests that Taiwan look to Singapore’s proactive regulatory approach as a reference for curbing the sale and distribution of ISDs.
Enhancing Transparency in Music Licensing
Finally, the Committee addressed the issue of music royalty rate-setting. The current system for Collective Management Organizations (CMOs) is often perceived as lacking transparency and opportunities for user participation. This perceived imbalance can lead to protracted disputes and market uncertainty, discouraging investment in legitimate digital music services.
Drawing on experiences from Japan and South Korea, the Committee recommends that Taiwan implement advance disclosure of rate-setting methodologies and allow for stakeholder input before new rates take effect. Strengthening procedural safeguards and oversight would create a more predictable environment for both rightsholders and digital service providers, ultimately benefiting the entire music ecosystem.
Implications for Taiwans Global Standing
The broader implications of these recommendations are clear: Taiwan stands at a crossroads. By adopting a forward-looking, risk-based, and flexible regulatory environment, the nation can secure its position as a leader in the global digital marketplace. Conversely, adhering to outdated models risks alienating international investors and slowing the pace of technological adoption.
The Committee’s report serves as a roadmap for the Taiwan government to harmonize its domestic regulations with international standards. As the world moves toward an AI-centric future, the ability to pivot quickly and maintain an open, predictable policy environment will be the deciding factor in Taiwan’s continued economic success and its influence as a cultural and technological powerhouse in the Asia-Pacific region. The Committee remains committed to working alongside the government to ensure that Taiwan’s regulatory framework evolves in tandem with the industries it seeks to govern.
Ali Ikhwan
