Siti Muinah
The Committee representing international business interests in Taiwan has released a comprehensive set of policy recommendations aimed at bolstering the island’s digital infrastructure, creative industries, and global competitiveness. While the Committee expressed appreciation for the Taiwan government’s ongoing efforts to advance digital transformation and artificial intelligence (AI), it underscored the urgent need for a more synchronized, forward-looking regulatory environment. As Taiwan navigates an era defined by rapid technological shifts and heightened geopolitical sensitivities, the Committee argues that the intersection of telecommunications, media, and the creative economy will determine Taiwan’s future soft power and economic resilience.
The Foundation of Digital Competitiveness: Telecommunications and AI
At the heart of the Committee’s proposal is the recognition that telecommunications infrastructure serves as the indispensable backbone of Taiwan’s digital economy. In a period where AI is no longer a peripheral technology but a central driver of enterprise transformation, the Committee suggests the establishment of a comprehensive telecommunications ecosystem specifically designed to facilitate AI development.
Currently, Taiwan’s telecommunications sector faces a unique set of challenges. Despite its critical role in facilitating voice, messaging, and data transmission, the scale of domestic operators remains significantly smaller than that of global giants. Furthermore, the industry is grappling with escalating geopolitical risks—most notably the vulnerability of submarine cables—and increasing operational pressures following the recent consolidation of the market into three major players.
To address these pressures, the Committee recommends that the government provide continuous incentives to reduce regulatory burdens. This includes fostering an environment where operators can focus on national digitalization goals rather than navigating outdated bureaucratic hurdles. The transition to an AI-native network architecture is viewed not just as a technical upgrade, but as a strategic necessity for national security and economic modernization.
Strengthening Digital Resilience and Infrastructure Chronology
A key pillar of the recommendations involves the "Forward-looking Infrastructure Development Program," a multi-year government initiative set to expire in 2025. This program has been instrumental in bridging the digital divide, yet the Committee notes that subsidies for improving mobile communication in rural areas remain vital beyond the current expiration date.
The chronology of Taiwan’s infrastructure development has reached a critical juncture. In early 2023, the cutting of subsea cables serving the Matsu islands highlighted the fragility of Taiwan’s external connectivity. In response, the Committee urges the government to prioritize the strengthening of submarine cable landing stations and the diversification of connection points to outlying islands. This is viewed as a prerequisite for "digital resilience," a term that has gained significant traction in Taipei’s policy circles amid concerns over regional stability.
Furthermore, the Committee calls for the immediate planning of B5G (Beyond 5G) and 6G spectrums. With key frequency bands such as the 700 MHz, 900 MHz, and 1800 MHz set to expire in 2030, the government must implement refarming and re-release strategies as soon as possible. By aligning with international best practices and releasing new Sub-1 GHz bands, Taiwan can lay the groundwork for 6G, which promises intelligent resource scheduling and self-repairing network capabilities—features essential for the management of critical infrastructure.
Modernizing Media Regulation for the Digital Age
As the media landscape shifts from traditional broadcast to digital and on-demand formats, the Committee has identified a widening gap between existing regulations and market realities. Satellite broadcasting and cable TV operators in Taiwan are currently governed by stringent, legacy frameworks that the Committee describes as "outdated."
The rise of Over-the-Top (OTT) platforms and Video-on-Demand (VOD) services has fundamentally altered consumer behavior. To maintain Taiwan’s competitiveness as a regional hub for content creation, the Committee recommends a "light-touch" regulatory approach. This would involve treating traditional channel operators and modern content service providers with greater parity, reducing unnecessary compliance burdens that currently put local broadcasters at a disadvantage against global digital platforms.
The Committee emphasizes that Taiwan’s creative economy is a primary vehicle for projecting cultural soft power. International OTT streaming services are not merely distributors; they are major investors in local Taiwanese productions, such as "At the Moment" and "Copycat Killer," which have gained global traction. A supportive policy environment is crucial to ensure that Taiwan continues to attract this high-level investment, which supports local jobs and elevates the island’s visibility on the global stage.
Data Economy and the "Smart Nation 2.0" Strategy
The successful implementation of Taiwan’s "Smart Nation 2.0" strategy depends heavily on how the island manages its data. While the Committee acknowledges the importance of the Personal Data Protection Act, it warns that overly rigid enforcement without flexible supporting measures could stifle AI innovation.
The establishment of the Personal Data Protection Commission marks a significant step in Taiwan’s regulatory evolution. The Committee suggests that this new body should actively solicit industry feedback to design "sandbox" mechanisms. These mechanisms would allow companies to test data-driven AI applications in a controlled environment, ensuring that privacy is protected without widening the technological gap between Taiwan and other advanced economies. The goal is to promote a "data economy" where information can be utilized effectively for public interest and economic growth while maintaining high ethical standards.
Expanding Telemedicine through 5G Integration
In the wake of the COVID-19 pandemic, telemedicine has emerged as a critical component of public health. However, its development in Taiwan has been hindered by regulatory constraints. The Committee proposes leveraging the low-latency and high-bandwidth characteristics of 5G to expand nationwide telemedicine coverage.
By narrowing the gap in medical resource allocation between urban centers and rural or geographically constrained areas, Taiwan can improve overall health outcomes. The Committee recommends that the Ministry of Health and Welfare work in tandem with telecommunications experts to relax restrictions on remote consultations and digital prescriptions, ensuring that the technology is fully utilized to serve the aging population and those in remote regions.
Intellectual Property and Copyright Enforcement
Effective copyright protection is described by the Committee as the "lifeblood" of the creative economy. Despite improvements in Taiwan’s legal framework, online piracy remains a persistent threat. The Committee points out that criminal cases against piracy operations can often drag on for years, by which time the infringing parties have often moved their operations to new domains.
To combat this, the Committee suggests:
- Centralized Administrative Frameworks: Implementing a "one-stop" site-blocking process coordinated through the Taiwan Network Information Center (TWNIC) to respond to illegal streaming at the speed of the internet.
- Combating Illicit Streaming Devices (ISDs): Strengthening enforcement against the sale of "grey-market" set-top boxes that facilitate unauthorized access to content and pose cybersecurity risks to consumers.
- Transparent Music Licensing: Improving the governance of Collective Management Organizations (CMOs). The Committee notes that royalty rate-setting in Taiwan often lacks transparency and meaningful user participation, leading to disputes that discourage investment in legitimate music services.
International comparisons were drawn with markets like South Korea and Singapore, which have adopted more proactive, administrative-led enforcement models. The Committee believes Taiwan would benefit from similar expedited review timelines for piracy cases.
Analysis of Implications: A Strategic Pivot
The recommendations provided by the Committee represent a strategic pivot for Taiwan. For decades, the island’s economic identity has been defined by hardware manufacturing and semiconductors. However, the Committee’s focus on AI, 6G, and the creative economy suggests that Taiwan’s next phase of growth must be driven by software, services, and cultural influence.
From a journalistic perspective, the implications of these policy choices are profound. If the government adopts a "light-touch" regulatory model for VOD and media, it could trigger a surge in local content production, making Taiwan a formidable competitor to South Korea’s "Hallyu" wave. Conversely, maintaining legacy regulations may lead to "regulatory arbitrage," where international firms bypass Taiwan in favor of markets with more flexible frameworks.
Furthermore, the emphasis on digital resilience and 6G planning reflects the broader "China Plus One" strategy and the global trend of de-risking supply chains. By securing its telecommunications infrastructure and lead in AI-native networks, Taiwan reinforces its position as a reliable and indispensable partner in the global digital ecosystem.
The Committee concludes that a forward-looking policy approach—one grounded in evidence, proportionality, and stakeholder engagement—is the only way to sustain Taiwan’s leadership. Strengthening enforcement against harmful activities like piracy, while maintaining an open and adaptive environment for innovation, will be essential for Taiwan to flourish in the global creative and digital marketplace. As the 2025 deadline for key infrastructure programs approaches, the eyes of the international business community will be on Taipei to see how many of these recommendations are integrated into the national agenda.
Iffa Jayyana
Layla Zulfa
