The Committee appreciates the Taiwan government’s continued efforts to advance key policy priorities, including digital transformation, artificial intelligence, cultural and creative industry development, cyber resilience, and broader economic modernization. These initiatives are increasingly interconnected. Telecommunications infrastructure forms the backbone of Taiwan’s digital competitiveness, while the media and entertainment sectors contribute not only to economic growth and employment, but also to Taiwan’s cultural influence and global visibility as part of its broader creative economy and soft power development.

As Taiwan seeks to position itself as a regional hub for content creation and distribution, policies that support investment, enable international collaboration, and facilitate efficient and lawful content distribution will be increasingly important. Maintaining a policy environment that is open, predictable, and innovation-friendly will be critical to sustaining growth across both traditional and digital services.

Extending legacy regulatory models to new digital and creative services, or maintaining outdated requirements on existing platforms, will not effectively address emerging challenges. Instead, policies should be grounded in evidence, proportionality, and a clear understanding of how different technologies and business models operate. Regulatory frameworks should distinguish between services with different risk profiles, reduce unnecessary legacy burdens, and focus enforcement efforts on clearly harmful or unlawful activities.

To sustain Taiwan’s leadership in digital development, and to support its ambitions for the creative economy and cultural soft power, a forward-looking policy approach is needed, including meaningful stakeholder engagement before new requirements are introduced, adoption of risk-based regulatory principles, and greater reliance on flexible governance mechanisms that can evolve alongside industry practices. Strengthening targeted piracy enforcement, while maintaining an open and adaptive regulatory environment, will be essential to attracting investment, supporting Taiwan’s creative ecosystem, and enhancing its competitiveness in the global creative economy.

Suggestion 1: Establish a comprehensive telecommunications ecosystem to facilitate the development and application of artificial intelligence.

1.1   Provide continuous incentives and rewards to reduce regulatory burdens and improve the development environment for the digital industry. Taiwan’s telecommunications industry, as the backbone of the communications infrastructure, undertakes crucial functions such as voice, messaging, data, and multimedia transmission. However, despite its undeniable importance, its scale remains far smaller than that of international telecommunications operators, and it faces increasingly severe geopolitical risks and operational pressures.

To ensure the industry can continue to drive enterprise AI transformation and national digitalization goals, the committee recommends the following:

• • A stronger role by the Ministry of Digital Affairs (MODA) in the overall planning, promotion, and management of communications and digital resources, including establishment of collaborative short, medium, and long-term development blueprints and incentive mechanisms. A dedicated fund at least equivalent to that of the Executive Yuan’s National Science and Technology Development Fund will be needed.
  • In line with the practice of major countries around the world, base the calculation of frequency usage fees on frequency management costs and reduce those fees year by year to reflect the true market value of the spectrum.
  • Lengthen the allowable delivery period for software purchases to four years to ensure that policy objectives are truly implemented. Currently, authorized software must be recognized as an intangible asset, and except for special circumstances where an extension can be applied for once before the expiration date, most purchase projects must be delivered within two years from the day after the order date. In commercial practice, companies often make purchases in advance or in bulk due to price advantages, and the actual delivery of equipment is completed in installments over several years according to demand.
  • To encourage businesses to commit to net-zero carbon emissions, revise relevant regulations to provide simplified procedures, tax breaks, or other incentives to telecommunications companies participating in green electricity procurement, self-consumption renewable energy power plants, smart energy management, and the construction of related equipment, in order to accelerate Taiwan’s energy transition.

1.2   Strengthen telecommunications network infrastructure and digital resilience. Submarine cables, Taiwan’s primary connection to the outside world and outlying islands, are a key objective in strengthening digital resilience. However, escalating geopolitical tensions and increasingly complex regulations have led to continuously rising operating costs for the telecommunications industry, placing an additional burden on operators striving to balance national development goals with maintaining competitiveness.

Furthermore, the government’s “Forward-looking Infrastructure Development Program” is set to expire in 2025, but subsidies for telecommunications operators to improve mobile communication quality in rural areas remain necessary. In response to these challenges, the Committee urges the government to take the following measures:

• • Continued allocation by MODA continues of sufficient budgets to promote mobile broadband and strengthen infrastructure resilience, so as to accelerate the digital transformation of various industries.
  • Purchase by the government of dedicated submarine cable repair vessels and establishment of comprehensive submarine cable repair capabilities to ensure timely response in the event of cable damage. In recent years, delays caused by difficulty in dispatching repair vessels have damaged the public’s communication rights.
  • The provision of appropriate government subsidies to help cover the costs of submarine cable repairs and maintain the stability and resilience of Taiwan’s external and outlying island networks.
  • Encouragement to operators to integrate new technologies into existing communication networks.

1.3   Complete B5G/6G spectrum planning and preparation work as soon as possible. Given the scarcity of spectrum resources, early spectrum planning and subsequent effective utilization are vitally important. After consolidation and restructuring, Taiwan’s telecommunications industry has entered an unprecedentedly competitive and cooperative phase. Therefore, besides referring to international trends, factors such as the size of the Taiwan market, consumer demand, and geopolitical situation need to be taken into account.

6G is an AI-native network architecture, improving efficiency through intelligent resource scheduling and automated maintenance. It also enhances real-time monitoring, anomaly warning, and self-repair capabilities, improving network resilience and anti-interference capabilities. This becomes a core competitive advantage for telecommunications operators developing enterprise private networks and critical infrastructure services.

The Committee therefore recommends that the government, in planning for the refarming or release of mobile communications, satellite services, or microwave spectrum, facilitate the construction of 5G SA networks and lay the foundation for 6G network construction in accordance with international best practices and the development needs of the telecommunications industry. For example, plans for the re-release of the 700 MHz, 900 MHz and 1800 MHz frequency bands expiring in 2030 should be implemented as soon as possible, and new Sub-1 GHz frequency bands should be released with reference to the spectrum plans of major countries around the world.

1.4   Continue to loosen regulations on the telecommunications industry. Due to continuous technological innovation and the market-open policies of the Telecommunications Management Act, diverse industries can now offer digital communication services similar to those of traditional telecommunications operators at lower costs. Continued strict regulation of traditional telecommunications operators will not only restrict industry competitiveness but also fail to effectively address trust and security issues.

Such overly stringent regulations will increase the operating costs of traditional telecommunications operators, and hinder Taiwan’s development in areas such as AI-driven digital transformation, green sustainability, cybersecurity transformation, and network resilience. We recommend that the government amend existing regulations to create a more cooperative regulatory environment to support the transformation and innovation of the telecommunications industry, encourage fair competition, and contribute to the industry’s long-term development.

1.5   Adopt flexible implementation of the Personal Data Protection Act to safeguard the public interest and promote development of the data economy. Committee appreciates the importance of personal data protection but notes that overly rigid protection measures without supporting measures can hinder the development of AI applications and smart services, delay implementation of Taiwan’s “Smart Nation 2.0” strategy, and widen the gap with advanced countries in AI applications, limiting development of the data economy. Therefore, the Committee recommends that after its establishment, the Personal Data Protection Commission continue to study important issues in the development of international personal data legislation and solicit opinions from industry players during the system design process, including regulations on personal data de-identification and sandbox mechanisms, to promote the coordinated development of the data economy and personal data protection.

1.6   Leverage 5G to expand nationwide telemedicine coverage. By harnessing the technological characteristics of 5G to promote the development of telemedicine, medical resources can be more widely distributed to geographically constrained areas, narrowing the gap in medical resource allocation between urban and rural areas. However, the development of telemedicine in Taiwan remains limited by certain regulatory and policy constraints.

The Committee proposes the following recommendations to the Ministry of Health and Welfare:

• • Continue to relax the restrictions stipulated in the “Regulations of Medical Diagnosis and Treatment by Telecommunications” and Article 11 of the Physicians Act concerning the requirement for physicians to conduct personal examinations.
  • Expand the scope of chronic disease patients eligible under the “Regulations of Medical Diagnosis and Treatment by Telecommunications” by removing limitations that restrict eligibility solely to National Health Insurance (NHI) benefits or specific pilot programs.
  • Promote integration of the “Regulations of Medical Diagnosis and Treatment by Telecommunications,” NHI outpatient benefit schemes, and long-term care companion services for medical visits. By leveraging the resources and assistance of home-care workers, telemedicine can support the rapidly growing medical needs of mobility-impaired elderly populations. Home-based telemedicine services (such as follow-up consultations and prescription refills for chronic diseases) can reduce unnecessary travel costs for long-term care recipients and lower the risk of infection among vulnerable populations.
  • Permit all individuals eligible under the “Regula-tions of Medical Diagnosis and Treatment by Tele-communications” to access telemedicine services on a self-pay basis, regardless of whether the services are covered by NHI reimbursement.

Suggestion 2:  Relax regulatory and procedural require-ments for channel operators so as 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 across an increasingly diverse range of services. This shift, driven by consumer demand for personalized services, has intensified competition within the media sector. In this environment, it is crucial to reform the current stringent and outdated regulatory landscape for satellite broadcasting and cable TV. These regulations also put channel operators at a disadvantage when competing with other service providers and do not reflect market realities.

The Committee urges the National Communications Commission (NCC) to adopt a “light-touch” approach that affords equal treatment to channel operators and other content service providers. A supportive policy environment and collaboration between a well-functioning NCC and industry are crucial to the sector’s continued health and viability.

Our specific recommendations:

• Ease or remove local content investment requirements on international content operators in Taiwan, including cable channel operators.
• Remove the requirement for a specific ratio of new content as it encourages channel operators to invest in low-cost content simply to meet the ratio. Content mix should ultimately be market driven, guided by and responsive to the preferences of Taiwanese audiences.

Suggestion 3: Foster VOD sector growth through open and collaborative policy.

Taiwan’s Over-the-Top (OTT) TV sector is a key driver of the creative economy and an important channel for projecting Taiwan’s cultural soft power globally. International OTT TV streaming platforms are not only distributors but also major investors in local production, supporting jobs, skills development, and the broader creative ecosystem. Policy choices in this area will directly determine whether Taiwan continues to attract such investment or risks of losing momentum to competing markets.

The Committee notes that the growth of OTT TV viewership does not, in itself, indicate widespread consumer harm requiring regulatory intervention, nor does the absence of sector-specific legislation necessarily constitute a policy gap. Taiwan’s existing legal framework already addresses core concerns — including consumer protection, privacy, and youth safeguards — supported by well-established industry-led self-regulatory mechanisms. In this context, additional prescriptive regulation should be carefully justified on the basis of clear evidence.

The Committee is concerned that legacy broadcasting frameworks may be extended to OTT services without a clear evidentiary basis. OTT platforms — particularly professionally generated content (PGC/SVOD) services — operate under fundamentally different models from traditional broadcasting and user-generated content platforms. Regulatory approaches that fail to reflect these differences risk introducing unnecessary compliance burdens, disrupting global operations, and weakening Taiwan’s attractiveness as a content investment destination.

Most OTT platforms already implement mature safeguards, including content ratings, parental controls, PIN protection, and restricted user profiles. There is scant evidence of systemic failure justifying increased regulatory intensity. Overly prescriptive or quasi-mandatory requirements risk creating a regulatory ceiling that constrains innovation while delivering limited consumer benefit.

Taiwan’s broader policy objective — to grow its creative economy and expand the global reach of its cultural content — requires a regulatory framework that enables, rather than constrains, cross-border investment and distribution. Divergence from international practices, particularly through duplicative classification systems or intrusive compliance requirements, could undermine Taiwan’s position in global content supply chains.

To align regulatory approaches with policy objectives, the Committee recommends:

• Adopt a risk-based, differentiated regulatory framework. Distinguish professionally generated content (PGC/SVOD) services from higher-risk user-generated content platforms, and ensure that any intervention is evidence-based and proportionate.
• Maintain reliance on self-regulatory mechanisms and international alignment. Preserve industry-led approaches for mature OTT services, avoid duplicative classification systems, and focus youth protection on effective parental control tools.
• Strengthen collaborative and adaptive policy-making. Establish structured multi-stakeholder consultation mechanisms and avoid prescriptive requirements that may constrain innovation or create unnecessary compliance burdens.

OTT TV services already take responsibility for protecting minors through robust, widely adopted safeguards. Additional regulatory layers are unlikely to improve outcomes and may instead deter investment. A flexible, evidence-based, and internationally aligned approach will better support Taiwan’s ambitions to grow its creative economy, strengthen its cultural soft power, and remain competitive in the global digital marketplace.

Suggestion 4: Strengthen copyright enforcement and improve CMO music licensing governance.

4.1   Enhance enforcement to combat online piracy. Effective copyright protection is essential to sustaining Taiwan’s creative economy, safeguarding legitimate digital services, and ensuring fair market competition. While Taiwan has strengthened its legal framework and international cooperation, online piracy remains a significant and persistent challenge.

Enforcement gaps continue to be an obstacle. Criminal cases can take several years to conclude, and even where prosecutions are successful, enforcement outcomes may fall short if illegal proceeds are not seized or infringing domains are not disabled. These gaps weakens deterrence and allows piracy operations to re-emerge or continue operating.

The Committee further notes that current administrative enforcement mechanisms — particularly site-blocking processes coordinated across ministries through the Taiwan Network Information Center— remain insufficiently responsive to the speed and scale of online piracy. These processes can be time-consuming and operationally complex, with limited coordination among stakeholders, reducing their effectiveness against rapidly evolving illegal streaming services.

International experience has shown that more streamlined approaches — such as centralized, one-stop administrative frameworks with expedited review timelines — can significantly improve enforcement. Regional markets including South Korea, Malaysia, and Indonesia have adopted models that enable faster and more coordinated action. Taiwan may benefit from exploring similar approaches.

In addition, the proliferation of illicit streaming devices (ISDs) presents growing risks not only to copyright protection but also to consumer safety and cybersecurity. These devices are often associated with malware, data security vulnerabilities, and unauthorized access to digital systems. Strengthening enforcement against the distribution and sale of such devices would help address both intellectual property and broader security concerns. International practices such as Singapore’s more proactive regulatory and enforcement approach may serve as a useful reference.

Taiwan’s existing legal framework already provides a basis for action in many of these areas. The priority should therefore be to improve the efficiency, coordination, and practical impact of enforcement, while ensuring appropriate safeguards for due process and transparency. We recommend:

• • Strengthen enforcement effectiveness and deterrence by ensuring seizure of illegal proceeds, disabling of infringing domains, and enhancing action against piracy devices and applications, including non-preloaded devices marketed for infringing use.
  • Improve the speed and coordination of enforce-ment mechanisms by streamlining criminal and administrative processes, and adopting more centralized, expedited site-blocking approaches in line with regional best practices.
  • Leverage technology and modern enforcement tools by incorporating data-driven detection and monitoring capabilities, while ensuring appropriate safeguards for transparency, due process, and accountability.

4.2   Promote transparency and balance in CMO music royalty rate-setting. A transparent, predictable, and balanced collective management framework is essential to ensuring that both rightsholders and users can participate effectively in Taiwan’s digital content market. While collective management organizations (CMOs) play an important role in facilitating licensing, the current system would benefit from enhanced transparency, structured dialogue, and clearer procedural safeguards to ensure balanced outcomes.

In Taiwan, royalty rate-setting processes are often perceived as lacking sufficient transparency, as well as meaningful opportunities for user participation. In practice, this can create an imbalance in bargaining dynamics, limit good-faith negotiations, and increase the likelihood of disputes. Addressing these concerns is particularly important as Taiwan seeks to maintain a competitive and attractive environment for digital content services.

International experience shows that challenges in music licensing are often driven less by royalty levels than by the governance and procedural design of collective management systems. In markets such as Japan and South Korea, regulatory frameworks incorporate advance disclosure of rate-setting methodologies, opportunities for stakeholder input, and, in some cases, prior review or approval by the competent authority before new rates take effect. These mechanisms help ensure that rate-setting processes are transparent, balanced, and subject to appropriate oversight.

In contrast, rate-setting frameworks that rely primarily on post-hoc review or limited consultation may reduce the effectiveness of oversight and create uncertainty for market participants. In a rapidly evolving digital environment, such uncertainty can increase compliance risks, constrain commercial flexibility, and discourage investment in legitimate music distribution services. Strengthening procedural safeguards and oversight mechanisms is therefore critical to maintaining a fair, efficient, and innovation-friendly licensing ecosystem.

Recognizing that legislative amendments take time, the Committee recommends prioritizing these practical, administrative measures that can be implemented in the near term:

• • Enhance transparency and procedural fairness in royalty rate-setting by requiring advance disclosure of methodologies, assumptions, and supporting data, and ensuring that proposed rates are made available for stakeholder review prior to implementation.
  • Establish a structured pre-finalization consultation mechanism to enable meaningful dialogue between CMOs, industry participants, and users, including opportunities for negotiation or mediation before rates take effect.
  • Strengthen regulatory oversight and implementation by encouraging the Taiwan Intellectual Property Office (TIPO) to adopt a more proactive supervisory role — such as enhanced review of proposed rates, clearer procedural guidance, and a defined action plan and timeline for developing user-negotiation mechanisms — in line with international practices.