Taiwan’s Legislative Yuan amends the Telecommunications Act to open the door for SpaceX’s Starlink network, and the “three telecom giants” are willing to agree conditionally

Starlink wants to enter Taiwan, but the bottleneck has never been the technology—it’s the law. The Legislative Yuan’s first reading has passed amendments to the Telecommunications Act, loosening two thresholds: the nationality requirement for satellite operators’ board chairmen and foreign investment that exceeds 60% in shareholding. The move is seen as clearing the way for SpaceX.
(Backgrounder: What is SpaceX’s satellite network Starlink? Can it be used during typhoons? When will Taiwan open up Starlink?)
(Additional background: A leaked prototype of SpaceX’s AI phone: plans to build ground-based mobile networks and compete with telecom carriers)

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• Japan already folded Starlink into its system
• What exactly did the amendment loosen? Two thresholds
• The provisos from the “three telecom giants”: rather than be replaced, be a partner
• The next battleground: the negotiating table

As of now, Starlink, Elon Musk’s Starlink, has not yet launched commercial services in Taiwan. The key obstacle is Taiwan’s foreign investment shareholding limits under telecommunications regulations, which have not been resolved despite Starlink’s insistence on operating as a wholly owned venture.

The crux of the bottleneck is Article 36 of the Telecommunications Management Act, which restricts foreign shareholding: foreign investors’ “direct shareholding” must not exceed 49%; direct plus indirect shareholding must not exceed 60%; and the chairperson must hold the nationality of the Republic of China. When Starlink met with Taiwan’s NCC in 2021, it insisted on operating 100% as a wholly owned subsidiary in Taiwan, which directly conflicts with the existing regulations—so negotiations broke down.

But now, a shift has appeared. The Telecommunications Act amendment passed in first reading by the Legislative Yuan’s Transportation Committee on the 13th, in essence, moves this legal checkpoint one step aside.

Japan already folded Starlink into its system

To understand this move by Taiwan, we first shift the lens to Japan. There, the three major telecom operators—KDDI, NTT DOCOMO, and SoftBank—have already been in talks with Starlink, integrating the capability of direct-to-phone satellite connectivity into their existing telecom services and public-safety networks.

In other words, Japan did not require foreign players to land and operate independently. Instead, it demanded that satellite capabilities must be “anchored” and operated under local licensed operators. This “import but tie it to local” model is precisely the template repeatedly referenced in Taiwan’s amendment discussions.

What exactly did the amendment loosen? Two thresholds

Returning to the bill itself, what is truly being pried open this time are two thresholds.

First, the chairperson of the telecommunications business under a satellite communications operator is no longer required to hold the nationality of the Republic of China. Second, the cap on foreign investment is loosened such that whether direct or indirect, it must not exceed 60%.

These two provisions previously effectively kept Starlink-type foreign operators out at the door. Now that the bill has been sent into cross-party and intergovernmental consultations, it effectively lays down the legal foundation for its eventual formal landing. The door is not fully open yet, but the bolt has already been pulled out halfway.

The “three telecom giants” provisos: rather than be replaced, be a partner

Faced with the door that is being opened, Chunghwa Telecom (2412), Taiwan Mobile (3045), and Far EasTone (4904) have been strikingly consistent in their stance: all three said they support and respect the direction of the amendment, but they also added long strings of provisos—urging that national security, cybersecurity, communications resilience, supervision, and industrial development be taken into account.

Chunghwa Telecom emphasized even more that it has already laid out plans for low-, medium-, and high-orbit satellite systems, and is building a multi-layer backup network of “sea, land, star, and sky.” Far EasTone, meanwhile, directly echoed the academic community, arguing that conditions such as data localization, deploying ground stations, and collaborating with local operators should be written into the amendment.

External interpretations suggest the three giants’ caution is by no means purely for public interest. Satellite services are a double-edged sword for telecom operators: they may both steal users in remote areas and at sea, and also serve as the best partner for disaster communications and covering blind spots.

Rather than watch Starlink bypass the rules and land directly for Taiwan users, it would be better to design regulations so that “if a foreign company wants to come in, it has to first hold hands with local operators.” In that sense, the three companies’ polished provisos are, bluntly, about securing a position as a “partner,” not a “replacement.”

The next battleground: the negotiating table

Passing the amendment in first reading is only the starting point of a long legislative path. Next, it still has to pass through cross-party consultations and committee discussions, and it remains far from the three-readings stage.

The upcoming contest will focus on one issue: whether those national-security supporting provisions are hard-coded into the law, or left as a soft clause like “authorized for the competent authority to set additional rules.” The former gives regulators teeth; the latter may be criticized as a backdoor tailored for a particular foreign operator.