The Committee appreciates the government’s proactive efforts in advancing key policy initiatives to support Taiwan’s long-term competitiveness, including the development of the creative economy, artificial intelligence, digital transformation, net-zero emissions, and cyber resilience. These initiatives have contributed to strengthening Taiwan’s position as an innovation-driven economy. The telecommunications and media sectors in particular have played a central role in supporting these goals by enabling robust communications infrastructure and fostering the emergence of soft power across the media and entertainment industries.

Notable shifts in the policy and market landscape have already occurred within the first quarter of the year, underscoring the need for regulatory approaches that can adapt to rapid technological developments and shifting international conditions. The Committee believes that a prescriptive or control-based regulatory model will be insufficient to meet the demands of Taiwan’s ongoing digital transformation across AI, industry, and media.

To respond effectively to the pace of change, we recommend that the government adopt more flexible regulatory frameworks that can accommodate innovation and evolving technologies. In particular, an open and collaborative approach that prioritizes stakeholder engagement, adaptive policymaking, and cross-sector coordination will be essential for enabling new business models, addressing emerging risks, and ensuring continued alignment with global innovation trends. By fostering a more agile and participatory regulatory environment, Taiwan will be better positioned to sustain its momentum in digital development and technological leadership.

Suggestion 1: Establish a well-developed communications ecosystem to promote AI-related applications and development.

1. Provide continuous incentive mechanisms and rewards. As the backbone of Taiwan’s communication infrastructure, the telecommunications industry supports essential voice, messaging, data, and multimedia transmission, as well as network resilience. As the industry faces heightened geopolitical and operational pressures, we urge the government to recognize its importance by strengthening planning, coordination, and support for its continued development.
   Telecom operators are already deploying AI to optimize base station placement, manage network traffic, and reduce energy consumption. AI has also been integrated into routine network maintenance and is increasingly forming the foundation for broader industry adoption of AI-driven applications. To ensure the sector can continue advancing corporate AI transformation and national digitalization goals, we urge the Ministry of Digital Affairs (MODA) to strengthen its role in planning, optimizing, and managing communication and digital resources. Efforts should include the development of coordinated short-, medium-, and long-term blueprints and incentive mechanisms. We suggest a dedicated fund at least equivalent to that of the Executive Yuan’s National Science and Technology Development Fund (approximately NT$1.6 billion).
   In addition, with the government’s Forward-looking Infrastructure Development Program set to expire in 2025, continued subsidies for rural mobile communications remain essential. The Committee urges MODA to allocate targeted budgets to expand 5G deployment and improve resilience-related infrastructure, thereby accelerating digital transformation across sectors.
2.  Establish a reasonable and flexible regulatory framework for the telecommunications industry. Ongoing technological innovation, coupled with the open-market principles of the Telecommunications Management Act, has enabled a wider range of industries to deliver telecom-like services at lower costs. This has allowed new market entrants to offer diverse digital communication solutions, intensifying competition.
   If the government continues to strictly regulate traditional telecommunications operators, it risks undermining the industry’s competitiveness while failing to effectively address trust and safety concerns. Excessively rigid rules, indirect tariff controls, continued expansion of universal services, and high-frequency usage fees reduce telecom providers’ ability to adapt to evolving risks, increase operating costs, and ultimately hinder Taiwan’s progress in AI-driven digital transformation, green sustainability, cybersecurity, and network resilience.
   The Committee recommends that the government revise existing regulations in a pragmatic manner and foster a more collaborative regulatory environment. This will support innovation, encourage fair competition, and help drive long-term industry growth.
3. Alleviate the financial and operational pressures on the telecommunications industry. The industry plays a foundational role in supporting Taiwan’s digital and green transformation objectives. However, rising geopolitical tensions and increasing regulatory complexity are contributing to a higher cost environment. These external and domestic pressures place additional strain on companies striving to maintain competitiveness while aligning with national development goals. In response, we recommend that the government adopt the following measures:
   a.)    Return to a reasonable pricing mechanism based on frequency management costs to better reflect the true market value of the spectrum.
   b.)    Amend relevant laws to streamline procedures and offer tax incentives for telecommunications companies investing in green electricity procurement, self-use renewable energy generation, smart energy management, and equipment recycling initiatives. These measures will promote green investment and accelerate the industry’s energy transition.
   c.)    Ensure that domestically promoted equipment complies with international telecommunications standards and meets the operation requirements of the industry, thereby supporting sustainable industrial development.
   d.)    Reaffirm the proposals made in the 2023 and 2024 editions of the White Paper, urging amendments to the Statute for Industrial Innovation and related regulations, including extending the application period for investment tax credits, raising the maximum credit amount to NT$10 billion, and expanding the scope of deductible items.
4. Remove obstacles to network infrastructure deployment. Thus far, 5G usage in Taiwan has fallen short of expectations. Last year, the National Communications Commission (NCC) reported that users of 5G services accounted for only 31% of mobile phone users in Taiwan. Moreover, network infrastructure construction has frequently faced delays due to limited access to public assets such as streetlights, traffic lights, utility poles, and public buildings, which hinders effective coverage.
   To address this issue, the Committee reiterates its recommendations from last year’s White Paper, urging the Taiwan government to establish standardized “Public Facility Access and Usage Guidelines” applicable to both central and local authorities. A cross-government coordination body should also be established to provide a single contact window, offering clear, consistent application procedures and unified fee structures nationwide.
   Such measures would remove critical obstacles to 5G rollout, enabling faster deployment of high-bandwidth networks that support AI and next-generation applications. Given the high capital requirements for network construction and operation, reducing deployment barriers is essential to strengthening Taiwan’s position as an attractive destination for foreign investment and digital innovation.
5.  Enhance spectrum planning and infrastructure resilience to safeguard Taiwan’s communications network. Taiwan’s telecommunications industry has entered a newly competitive landscape following consolidation and structural adjustments. Yet spectrum remains scarce, requiring a planning approach that considers Taiwan’s market dynamics, consumer demand, network resilience, and geopolitical context, not just international trends.
   For future planning of mobile communications, satellite services, or the refarming (repurposing) and release of microwave frequencies, the Committee urges the government to align with global best practices while responding to the development needs of Taiwan’s telecommunications industry. For example, jurisdictions such as the United States and Germany have adopted technology-neutral licensing and spectrum refarming to accelerate the rollout of advanced networks. Countries like Japan and the United Kingdom have also introduced flexible licensing models and dynamic spectrum sharing to support private 5G networks and improve utilization efficiency.
   In addition, if international low-earth orbit (LEO) satellite operators seek partnerships with domestic telecom firms holding licensed frequency bands, the government should offer the necessary regulatory and technical support to facilitate such cooperation. Doing so will help strengthen Taiwan’s network resilience and accelerate infrastructure advancement.
   Recent repeated incidents of submarine cable damage between Taiwan’s main island and areas such as Matsu, Penghu, and international destinations have exposed serious vulnerabilities in Taiwan’s communication links. Repair efforts in 2023, 2024, and early 2025 were delayed due to challenges in dispatching repair ships, compromising the public’s communication access. The Committee reiterates its call for the government to acquire a dedicated submarine cable repair vessel and to establish robust domestic and international cable repair capabilities. These steps are critical to ensuring timely response in the event of future disruptions and maintaining the stability and resilience of Taiwan’s external network infrastructure.
6. Allow flexibility in implementing the Personal Data Protection Act to safeguard public interests and promote data economy development. The Committee reiterates the importance of personal data protection. However, overly rigid safeguards without supporting mechanisms may hinder the development of AI applications and smart services. Such hurdles could also delay the implementation of Taiwan’s “Smart Taiwan 2.0” strategy and widen the gap between Taiwan and leading countries in AI adoption, ultimately restricting the growth of the data economy.
   The Committee therefore recommends that following the establishment of the Personal Data Protection Committee, tiered de-identification frameworks (varying levels of data anonymization) and sandbox mechanisms (allowing for limited, controlled testing of new data applications or technologies under regulatory oversight) be developed. Such efforts should be coordinated with relevant competent authorities and designed to ensure both public interest protection and secure data flow.
   In the medium to long term, Taiwan’s data protection framework should be continuously updated in response to international norms and technological advancements, striking a balance between safeguarding individuals, enabling data-driven innovation, and advancing the digital economy.
7. Leverage 5G to broaden telemedicine access across Taiwan. The characteristics of 5G can significantly advance telemedicine by overcoming geographical limitations and enabling broader distribution of medical resources, which helps to reduce disparities in healthcare access. However, the development of telemedicine in Taiwan remains constrained by certain regulatory or policy limitations.
   The Committee proposes the following three recommendations:
   a.)    Continue to ease restrictions in the “Rules of Medical Diagnosis and Treatment by Telecommunications” and Article 11 of the Physicians Act, particularly those requiring physicians to conduct an in-person diagnosis.
   b.)    Expand the scope of eligible chronic disease patients under the “Rules of Medical Diagnosis and Treatment by Telecommunications,” removing limitations tied to National Health Insurance (NHI) coverage or designated project participation.
   c.)    Allow all eligible individuals to access telemedicine services at their own expense, regardless of NHI inclusion.

Suggestion 2: Relax regulatory and procedural requirements for channel operators to maintain Taiwan’s competitiveness.

As broadcast television transitions to digital formats, competition in the media sector has intensified, driven by consumer demand for personalized and on-demand content. In this evolving landscape, Taiwan’s regulatory framework for satellite broadcasting and cable TV remains overly stringent and outdated. These legacy regulations place channel operators at a disadvantage compared to other content service providers and fail to reflect current market realities.

The Committee urges the NCC to relax its regulatory framework and adopt a “light-touch” approach that ensures fair treatment for both traditional channel operators and emerging content platforms. A supportive policy environment, fostered by cooperation between the NCC and industry stakeholders, is essential to sustaining the health and competitiveness of Taiwan’s media sector.

In this connection, we reiterate the following recommendations to the NCC:

• Ease or remove local content investment requirements for international content providers operating in Taiwan, including cable channel operators.
• Eliminate mandatory new content ratio requirements, which often encourage investment in low-cost programming simply to meet quotas. Content strategies should be market-driven and responsive to the preferences of Taiwanese viewers.

Suggestion 3: Foster growth in the video-on-demand sector through open and collaborative policies.

Taiwan’s video-on-demand (VOD) sector is a dynamic contributor to the domestic economy, offering diverse content that appeals to both domestic and international audiences. With strong demand for high-quality programming, the VOD industry plays a vital role in job creation, enhancing production capabilities, and promoting cultural exchange. In 2023, Taiwan’s audiovisual industry contributed a total of NT$90 billion (US$2.8 billion) to the economy when including indirect and induced impacts across sectors such as transport, finance, and professional services. The industry is also a major employer, supporting roughly a quarter of all jobs in Taiwan’s arts, entertainment, and recreation sector. As Taiwan positions itself as a leader in digital content, adopting policies that support investment and innovation is essential.

Despite its success, the sector faces challenges from protectionist policies designed to shield domestic companies from international competition. Measures such as local content quotas and restrictive regulations impose mandatory obligations that can stifle innovation and deter foreign investment, potentially blocking Taiwan from global opportunities. In contrast, a collaborative environment that encourages cooperation between domestic and international operators can strengthen Taiwan’s content creation capabilities and expand growth opportunities.

Although many regulatory concerns have already been addressed through industry-standard agreements, the costs and burdens associated with over-the-top (OTT) television regulation risk driving creative businesses away. A rigid approach may quickly become outdated, jeopardizing the industry’s long-term development. VOD providers already comply with existing laws and consumer safeguards, underscoring the need for a more flexible, innovation-driven policy framework that encourages growth and collaboration.

To enhance and sustain the growth of Taiwan’s VOD industry, it is essential to implement policies that prioritize investment and collaboration over restrictions in the following ways:

• Introduce targeted incentives and subsidies to support local content production. Encourage partnerships with international companies to promote knowledge exchange, innovation, and global competitiveness. Investments in workforce development and production infrastructure will further strengthen industry capabilities.
• Avoid regulatory measures that disproportionately impact foreign service providers. A fair and balanced regulatory environment is key to attracting investment, stimulating competition, and improving content quality across the board.
• Foster an open and collaborative internet policy ecosystem that supports creative cooperation between domestic and international players. This approach will enable Taiwan’s VOD and broader entertainment sector to flourish, driving economic growth and elevating Taiwanese cultural content on the global stage.

Suggestion 4: Strengthen copyright protections to safeguard Taiwan’s creative economy and promote fair market practices.

Copyright protection is foundational to the continued growth and global competitiveness of Taiwan’s creative and media industries. These sectors rely on effective rights management frameworks that ensure creative control for artists while enabling innovation in content distribution. Strengthening enforcement mechanisms and ensuring equitable practices across the copyright ecosystem are essential to preserving industry vitality.

1. Continue to enhance measures to combat online piracy. Persistent concerns surrounding digital piracy in Taiwan remain a significant barrier to the protection of intellectual property rights. The 2025 National Trade Estimate Report issued by the Office of the U.S. Trade Representative identified online copyright infringement, including illegal streaming websites, IPTV services, and piracy-enabled devices, as key trade concerns. These practices contribute to revenue loss across the creative economy, jeopardize user safety through exposure to malicious content, and undermine legitimate innovation.
   To address these challenges, the Committee recommends that the government introduce no-fault injunction mechanisms to enable the prompt dismantling of piracy networks, consistent with international best practices. Additionally, expanded enforcement targeting the production, sale, and marketing of illicit streaming devices and associated software is warranted. A comprehensive strategy incorporating legislative modernization, regulatory enforcement, and private-sector collaboration is critical to effectively safeguarding Taiwan’s creative industries.
2. Enhance oversight of collective management organizations. The current framework governing collective management organizations (CMOs), as stipulated under the Copyright Collective Management Organization Act (CCMOA), does not sufficiently address the imbalance between rightsholders and copyright users. In particular, royalty rates are often unilaterally determined by CMOs operating in dominant market positions, leaving users with limited avenues for fair negotiation. While the law mandates that statutory criteria under Article 24 be considered, the Committee observes inconsistent implementation in practice.
   To ensure balanced market participation and good faith engagement, the Committee recommends amending the CCMOA to require that royalty rate schedules be submitted to the competent authority for pre-approval, as is standard in jurisdictions such as Japan and South Korea. Until such amendments are made, the Taiwan Intellectual Property Office (TIPO) should take proactive steps to oversee the rate-setting process and confirm that all statutory factors are duly evaluated.
   Although TIPO has previously cited past exchange meetings as fulfilling consultation requirements, no such meeting has been convened since 2021. The Committee recommends holding a new exchange to reflect the current market environment and enable a more representative dialogue among stakeholders.
   The Committee further urges establishment of a formal mechanism to enable negotiation, prior to rate finalization, between CMOs and copyright users. Current recourse is limited to formal agency review, which is burdensome and does not promote constructive engagement. A structured process for rate consultations would enhance market predictability, reduce the frequency of disputes, and align Taiwan’s system more closely with regional best practices. We support TIPO’s plan to introduce regulations for this purpose and welcome further consultation on the development of those regulations.