Taiwan’s legislature has passed a first review of draft amendments to the Telecommunications Management Act that would relax foreign ownership limits and chairman nationality rules for non-terrestrial network operators, removing a key regulatory barrier for SpaceX’s Starlink to launch services in Taiwan.
Chunghwa Telecom chairman Alex Chien said the company is actively seeking an exclusive agency arrangement for Starlink in Taiwan. He said a joint venture that sets up a Taiwan subsidiary also remains on the table as a possible way to bring low-earth-orbit satellite services into the market and strengthen domestic communications resilience. He added that the outcome will still depend on Starlink’s willingness.
Draft amendment targets satellite operator restrictions
Under the current Telecommunications Management Act, a company that sets up a public telecommunications network must have a chairman with Republic of China nationality, while total direct and indirect foreign ownership cannot exceed 60%.
That requirement has been the main obstacle for SpaceX, whose global operations are structured as wholly owned companies, to enter Taiwan. The recently approved draft amendment adds an exception mechanism for satellite communications operators and has been viewed by the market as a “Starlink clause.”
Chunghwa Telecom said it supports the regulatory adjustment. The company said bringing in international satellite operators could help fill out non-terrestrial network deployment, while adding that follow-up supporting measures should be put in place to safeguard national security.
Exclusive agency or joint venture under consideration
Chien said Chunghwa Telecom will seek either exclusive agency rights in Taiwan or a joint venture with Starlink to form a local subsidiary. He framed the issue around national security, telecommunications management and data governance.
The company’s position suggests that any eventual market entry model would be tied not just to commercial terms but also to how supervision is structured once the service begins operating in Taiwan.
Company urges phased opening modeled on Japan and South Korea
For future low-earth-orbit satellite deployment, Chunghwa Telecom said Taiwan’s regulators should study the supervisory approaches used in Japan and South Korea and open the market in stages.
Its proposal starts with satellite data services. After operations stabilize, regulators could then expand to satellite voice and direct-to-cell functions. Chunghwa Telecom said that if satellite operators establish branches in Taiwan, set up ground receiving stations and work with local telecom providers to manage subscriber numbers and radio spectrum, government oversight of communications security would become more effective.
The company also said local management of signal access through subscriber number controls could reduce potential cybersecurity risks and make the regulatory framework more complete.
Chunghwa Telecom says strategic use matters more than mass-market demand
Addressing past market views that low-earth-orbit satellite operators may see little reason to enter Taiwan because the mobile communications market is mature, saturated and limited in size, Chunghwa Telecom offered a different assessment.
It said Taiwan’s population and economic activity are highly concentrated and mobile network coverage is already extensive, so demand in the general consumer market is relatively limited. Still, the company said low-earth-orbit satellites have clear value from a broader national communications perspective, especially for emergency response communications and national defense protection.
Supply chain names and industry competition also in focus
The report said looser rules could create partnership openings for telecom operators and could also drive orders across Taiwan’s satellite communications supply chain. It named Universal Microwave Technology (3491), Wistron NeWeb (6285) and Compeq (2313) as component and hardware makers that may participate in ground station and satellite component construction projects.
Chunghwa Telecom also responded to market competition after rival Taiwan Mobile posted strong earnings per share in the first half of the year. The company said EPS performance can vary, but Chunghwa Telecom still leads in absolute profit and will continue working to improve its financial results.