Ali Ikhwan
The Committee for digital development and creative industries has issued a comprehensive set of policy recommendations aimed at bolstering Taiwan’s position as a global leader in artificial intelligence, telecommunications, and cultural soft power. These recommendations come at a pivotal moment as the Taiwan government continues to advance its "Smart Nation 2.0" strategy, seeking to integrate digital transformation with economic modernization. The Committee’s report emphasizes that the convergence of telecommunications infrastructure, AI development, and the creative economy forms the essential foundation for Taiwan’s future competitiveness. By advocating for a shift from legacy regulatory models to evidence-based, innovation-friendly frameworks, the Committee seeks to ensure that Taiwan remains an attractive destination for international investment while enhancing its resilience against geopolitical and economic pressures.
The Strategic Intersection of Telecommunications and Artificial Intelligence
At the heart of the Committee’s proposal is the recognition that telecommunications infrastructure serves as the backbone for the nation’s digital competitiveness. In the current era of rapid technological evolution, the telecommunications sector is no longer merely a utility for voice and data transmission; it is the fundamental enabler of AI transformation. The Committee notes that while Taiwan’s telecommunications operators are crucial to national digitalization goals, they operate at a significantly smaller scale than international giants and face mounting operational pressures.
To address these challenges, the Committee recommends the provision of continuous incentives and rewards to reduce regulatory burdens. Such measures are deemed necessary to offset the escalating costs associated with geopolitical risks and the high capital expenditure required for next-generation network deployment. As Taiwan transitions toward an AI-native network architecture, the Committee stresses the importance of early spectrum planning for B5G (Beyond 5G) and 6G technologies. Specifically, the report calls for the refarming and release of mobile communications, satellite services, and microwave spectrum in accordance with international best practices.
Chronology of Infrastructure Development and Policy Expirations
The timing of these recommendations is critical due to several looming deadlines in Taiwan’s infrastructure policy. The government’s "Forward-looking Infrastructure Development Program," which has been a cornerstone of digital investment, is set to expire in 2025. Without a clear successor program or continued subsidies, the Committee warns that improvements in mobile communication quality—particularly in rural and underserved areas—could stagnate.
Furthermore, existing frequency bands for 700 MHz, 900 MHz, and 1800 MHz are scheduled to expire in 2030. The Committee urges the government to implement re-release plans as soon as possible to provide operators with the certainty needed for long-term investment. This timeline is essential for laying the foundation for 6G networks, which will utilize intelligent resource scheduling and automated maintenance to improve network resilience and anti-interference capabilities.
Strengthening Digital Resilience and Submarine Cable Security
In light of increasing regional tensions, the security of Taiwan’s digital connections to the outside world has become a matter of national importance. Submarine cables are identified as a primary objective in strengthening digital resilience. The Committee highlights that escalating geopolitical risks have led to a significant rise in operating costs for the telecommunications industry, which bears the responsibility for maintaining these vital links.
To mitigate these risks, the Committee suggests that the government must take proactive measures to support operators in safeguarding critical infrastructure. This includes not only financial subsidies but also a streamlining of the complex regulations that currently govern cable maintenance and deployment. By reinforcing these connections, Taiwan can better withstand potential disruptions and maintain its status as a reliable hub for regional data traffic.
Modernizing the Creative Economy and Media Regulation
The report transitions from physical infrastructure to the "soft" infrastructure of the creative economy. As Taiwan seeks to become a regional hub for content creation and distribution, the Committee argues that outdated regulatory requirements on existing platforms must be retired. The current "stringent and outdated" landscape for satellite broadcasting and cable TV is seen as a disadvantage for local channel operators who must compete with global digital services.
The Committee urges the National Communications Commission (NCC) to adopt a "light-touch" approach. This philosophy advocates for equal treatment between traditional channel operators and new content service providers. By reducing unnecessary legacy burdens, the government can foster a more open and predictable environment that encourages international collaboration and investment in local productions.
The Role of VOD and OTT Services in Soft Power
The Over-the-Top (OTT) TV sector is highlighted as a key driver of Taiwan’s cultural soft power. International streaming platforms are not just distributors; they are major investors in Taiwan’s creative ecosystem, supporting jobs and skills development. The Committee cautions against extending legacy broadcasting frameworks to OTT services, noting that such a move could disrupt global operations and weaken Taiwan’s attractiveness as an investment destination.
Instead of prescriptive regulation, the Committee recommends relying on existing industry-led self-regulatory mechanisms. Most OTT platforms already implement robust safeguards, such as content ratings and parental controls, which the Committee argues are sufficient for protecting minors without the need for additional, intrusive compliance requirements.
Data Economy and the Personal Data Protection Act
A significant hurdle to AI development identified in the report is the potential for overly rigid data protection measures. While the Committee appreciates the importance of privacy, it notes that the current implementation of the Personal Data Protection Act could delay the "Smart Nation 2.0" strategy. To prevent Taiwan from falling behind other advanced nations in AI applications, the Committee recommends a flexible implementation of data laws.
The establishment of the Personal Data Protection Commission is seen as an opportunity to study international legislative trends. The Committee suggests the introduction of "sandbox mechanisms" and regulations for personal data de-identification. These tools would allow companies to innovate with data-driven AI models while still maintaining high standards of public interest and individual privacy.
Enhancing Copyright Enforcement and Licensing Transparency
To sustain the creative economy, the Committee identifies effective copyright protection as an absolute necessity. Despite improvements in the legal framework, online piracy remains a persistent challenge that undermines legitimate digital services. The report points out that criminal cases often take years to conclude, and the lack of effective domain-disabling mechanisms allows piracy operations to re-emerge quickly.
The Committee recommends a "one-stop" administrative framework for site-blocking, citing successful models in South Korea, Malaysia, and Indonesia. This would involve faster, more coordinated action across ministries to disable access to infringing content. Additionally, the report calls for a crackdown on "illicit streaming devices" (ISDs), which not only facilitate copyright infringement but also pose significant cybersecurity risks to consumers through malware and data vulnerabilities.
Transparency in Music Royalty Rate-Setting
Finally, the Committee addresses the governance of Collective Management Organizations (CMOs) in the music industry. There is a perceived lack of transparency and meaningful user participation in the current royalty rate-setting process. To ensure a balanced digital content market, the Committee suggests adopting practices from Japan and South Korea, where rate-setting methodologies are disclosed in advance and subject to stakeholder input. Such transparency would reduce the likelihood of disputes and provide the commercial flexibility needed for music distribution services to thrive in a digital-first environment.
Analysis of Implications: A Forward-Looking Policy Approach
The recommendations provided by the Committee underscore a broader shift in how modern economies must view regulation. The traditional "command-and-control" style of governance is increasingly viewed as an obstacle to the fast-paced world of AI and digital media. By adopting risk-based regulatory principles and flexible governance mechanisms, Taiwan has the opportunity to harmonize its legal environment with international standards.
The implications of these policy choices are far-reaching. If the government successfully transitions to a "light-touch" and "innovation-friendly" environment, Taiwan could see a surge in international content investment and a more robust AI ecosystem. Conversely, maintaining outdated regulations could lead to a "regulatory ceiling" that constrains innovation, drives away foreign capital, and leaves the nation’s infrastructure vulnerable to both technological obsolescence and geopolitical interference.
The Committee concludes that meaningful stakeholder engagement and a clear understanding of evolving business models will be essential. As Taiwan navigates the complexities of the global digital marketplace, its ability to remain adaptive and open will determine its success in the next decade of technological competition. Through the implementation of these strategic suggestions—from 6G planning to telemedicine expansion and enhanced piracy enforcement—Taiwan can secure its leadership in the digital development of the Asia-Pacific region.
Raul Delapena Setiawan
Lina Irawan
