Taiwan changes telecom rules that could let Starlink operate

Taiwanese lawmakers approved changes to telecoms rules on Tuesday that could allow Starlink to offer satellite internet service on the island, as Taiwan looks for stronger communications backups in case of war or natural disaster.

Taiwan has no low-Earth-orbit satellites of its own and depends on subsea telecoms cables to connect with the rest of the world. China claims Taiwan as part of its territory and has threatened to seize it by force.

Taiwan's Chunghwa Telecom has made deals with several foreign satellite companies to provide backup telecommunications, but lawmakers said that was not enough. They said existing rules requiring telecoms operators to have a Taiwanese chairperson, along with a 49 percent cap on foreign ownership, had discouraged Starlink from entering Taiwan's market.

Lawmakers from President Lai Ching-te's Democratic Progressive Party and the opposition approved changes allowing a case-by-case review process that could exempt companies such as Starlink from those requirements. Authorities will have to consider national security, network security, market competition and other factors when making decisions.

Kuomintang lawmaker Huang Chien-hao called the vote a crucial step as Taiwan builds a more resilient digital system. Lai's office said the changes would help develop more diverse satellite communication services and strengthen communications resilience. The amendments will be sent to Lai for signing before taking effect.

Starlink, owned by Elon Musk, operates thousands of satellites and provides services in dozens of countries. Taiwan has already experienced disruption from damaged undersea cables: in February 2023, two telecoms lines serving the outlying Matsu archipelago were cut, disrupting communications for weeks. Taiwan has also looked at Ukraine's use of Starlink during its war with Russia.

DPP lawmaker Lin Chun-Hsien said satellite communication could greatly improve communications security and resilience.

Some people in Taiwan remain cautious about depending too much on Starlink. The source said Musk has acknowledged blocking a Ukrainian attack on Russian warships by turning off access to the system. His business ties with China and previous comments that Taiwan should become part of China have also angered people on the island.

It remains unclear whether Starlink wants to offer service in Taiwan. Digital Affairs Minister Lin Yi-jing said on Facebook in May that Starlink had recently indicated Taiwan was not a high-priority market, citing its small size, high population density and nearly complete 4G and 5G population coverage. Lin said that could reflect Starlink's true position or be a negotiating tactic.