Suro Senen
The Committee representing international business interests in Taiwan has issued a comprehensive set of policy recommendations aimed at bolstering the island’s digital competitiveness, urging the government to harmonize its regulatory frameworks with the rapid evolution of artificial intelligence (AI), telecommunications, and the creative economy. While the Committee expressed appreciation for the Taiwan government’s ongoing efforts in digital transformation and cyber resilience, it emphasized that the current legal environment must transition from legacy models to a more flexible, risk-based approach to maintain Taiwan’s status as a regional hub for innovation. The report underscores that telecommunications infrastructure serves as the indispensable backbone of this digital shift, while the media and entertainment sectors are vital drivers of economic growth and cultural soft power.
Strategic Realignment of the Telecommunications Ecosystem
At the heart of the Committee’s proposal is the establishment of a comprehensive telecommunications ecosystem designed to facilitate the development and application of artificial intelligence. Telecommunications in Taiwan is currently at a crossroads; while it provides the essential infrastructure for voice, data, and multimedia transmission, the domestic industry operates at a significantly smaller scale compared to international giants. This disparity, coupled with heightening geopolitical risks and operational pressures, necessitates a more supportive regulatory environment.
The Committee recommends that the government provide continuous incentives to reduce regulatory burdens. This includes a call to action for the government to support enterprise AI transformation. By streamlining the requirements for traditional operators, Taiwan can better position its digital industry to compete globally. Currently, the industry faces "unprecedentedly competitive and cooperative phases" following a period of market consolidation. The report suggests that failing to loosen strict regulations on traditional operators will not only stifle competitiveness but also hinder broader goals such as green sustainability and cybersecurity transformation.
Strengthening Digital Resilience and Infrastructure Chronology
Taiwan’s digital resilience is inextricably linked to its physical connectivity, specifically submarine cables. As the primary link between the main island, its outlying territories, and the global internet, these cables are increasingly viewed through the lens of national security. The Committee notes that escalating geopolitical tensions have driven up operating costs for telecommunications companies, who must balance national development goals with the need to remain profitable.
Historically, Taiwan has addressed infrastructure through the "Forward-looking Infrastructure Development Program," a multi-year initiative launched to modernize the nation’s backbone. However, with this program set to expire in 2025, the Committee warns of a potential gap in funding. Continued subsidies are deemed necessary to improve mobile communication quality in rural areas and to ensure that digital inclusion remains a priority.
The chronology of Taiwan’s mobile development shows a steady progression, but the Committee urges an acceleration of the transition to 6G. With 6G envisioned as an "AI-native" network architecture, the report calls for the completion of B5G/6G spectrum planning. This includes the refarming of frequency bands—specifically the 700 MHz, 900 MHz, and 1800 MHz bands expiring in 2030—and the release of new Sub-1 GHz bands to align with international best practices.
Data Economy and the Evolution of Privacy Regulation
A significant hurdle identified in the report is the implementation of the Personal Data Protection Act. While acknowledging the importance of privacy, the Committee argues that "overly rigid protection measures" without sufficient flexibility could delay the "Smart Nation 2.0" strategy. The concern is that a lack of clear mechanisms for data de-identification and "sandbox" testing will widen the gap between Taiwan and other advanced economies in AI application.
To address this, the Committee recommends that the newly established Personal Data Protection Commission engage in meaningful dialogue with industry players. The goal is to create a system where data can be leveraged for economic growth—particularly in the data economy—without compromising individual privacy rights. This balanced approach is seen as essential for fostering a domestic environment where AI-driven smart services can flourish.
Modernizing Media and the Shift to "Light-Touch" Regulation
The media landscape in Taiwan is undergoing a profound transformation as broadcast television gives way to digital, on-demand content. The Committee highlights a growing disparity between the stringent regulations imposed on traditional satellite and cable TV operators and the relatively unregulated digital space. This "outdated regulatory landscape" is said to put traditional channel operators at a distinct disadvantage.
The Committee urges the National Communications Commission (NCC) to adopt a "light-touch" regulatory approach. This would involve treating traditional channel operators and modern content service providers with greater parity. By reducing the administrative and procedural hurdles for legacy media, the government can encourage investment in high-quality local content, which is essential for Taiwan’s cultural influence.
Furthermore, the growth of the Over-the-Top (OTT) TV sector is highlighted as a primary driver of the creative economy. International streaming platforms are not merely distributors but are increasingly major investors in local Taiwanese productions. The Committee cautions against extending legacy broadcasting frameworks to OTT services. Instead, it advocates for self-regulatory mechanisms, noting that most platforms already employ robust safeguards such as parental controls and content ratings.
Copyright Enforcement and Combating Digital Piracy
Effective copyright protection is identified as a cornerstone of the creative ecosystem. Despite improvements in Taiwan’s legal framework, online piracy remains a persistent threat. The Committee points out that criminal cases involving intellectual property can languish in the court system for years, often concluding without the seizure of illegal proceeds or the effective disabling of infringing domains.
The report calls for a more "streamlined and responsive" administrative enforcement mechanism. It suggests that Taiwan look to regional neighbors like South Korea, Malaysia, and Indonesia, which have adopted centralized, one-stop frameworks for site-blocking. Additionally, the proliferation of Illicit Streaming Devices (ISDs) is flagged as both a copyright and a cybersecurity risk. These devices often serve as vectors for malware, threatening consumer data security.
In tandem with piracy enforcement, the Committee addressed the governance of Collective Management Organizations (CMOs) regarding music licensing. Currently, royalty rate-setting processes in Taiwan are perceived as lacking transparency and meaningful user participation. The Committee recommends adopting models similar to those in Japan and South Korea, where rate-setting methodologies are disclosed in advance and subject to stakeholder input and regulatory oversight.
Analysis of Implications and Stakeholder Reactions
The recommendations set forth by the Committee reflect a broader global trend where technology outpaces legislation. For Taiwan, the stakes are particularly high. As a nation that prides itself on being a "Silicon Island," its transition from a hardware manufacturing powerhouse to a software and AI-driven economy depends heavily on these regulatory shifts.
Industry analysts suggest that if the government adopts a more flexible, risk-based regulatory framework, it could trigger a significant influx of foreign direct investment (FDI) in the media and tech sectors. Conversely, maintaining "legacy burdens" could lead to "regulatory arbitrage," where companies choose to base their regional operations in more policy-friendly markets like Singapore or Vietnam.
While official responses from the Ministry of Digital Affairs (MODA) and the NCC are expected in the coming months, early indications suggest a willingness to engage. Government officials have previously signaled support for "Smart Nation 2.0," though the challenge remains in balancing national security concerns with the "open and predictable" environment requested by international investors.
Conclusion: A Forward-Looking Policy Roadmap
The Committee’s report serves as a roadmap for Taiwan to enhance its global competitiveness. By strengthening telecommunications infrastructure, embracing flexible data governance, and modernizing its approach to the creative economy, Taiwan can solidify its position as a digital leader. The emphasis on "meaningful stakeholder engagement" and "internationally aligned practices" suggests that the path forward must be collaborative. As Taiwan approaches 2025—a pivotal year for its infrastructure programs and digital strategy—the decisions made by policymakers will determine the island’s economic and cultural trajectory for the next decade.
Siti Muinah
