Low Earth orbit (LEO) satellite technology has once again grabbed international attention after Apple in September introduced a feature allowing iPhone 14 users in the US and Canada to send emergency messages from remote locations through satellites. This comes as Space X’s satellite service, Starlink, plays a key role in providing Internet access in Ukraine amid Russia’s invasion.
In Taiwan, the big-three telecoms have been preparing to launch satellite broadband services. Although Taiwan has relatively good 4G and 5G network coverage, along with an extensive fiber-optic network, some mountainous and remote areas still have spotty Internet service.
More importantly, satellite broadband service is a must-have when considering national security and emergency uses, especially in situations in which base stations are damaged and Internet connections are disrupted. LEO satellites have advantages: They operate 36 times closer to Earth than traditional satellites, requiring less time to send and receive information, which leads to faster broadband service, even in remote areas.
After a prolonged wait, the Ministry of Digital Affairs last week passed regulations to allow satellite broadband services and said it would start accepting applications from Tuesday next week to Dec. 30 for companies to obtain licenses to offer the services on selected frequencies. Given the strict regulations, there is still a long way to go before LEO satellite services are available in Taiwan.
The biggest obstacle is that applicants must be local telecom operators, according to the ministry’s rules. Direct foreign investor ownership is capped at 49 percent, and at 60 percent for a combination of direct and indirect foreign ownership. Chinese investors are prohibited from investing in satellite service providers.
The rules would obviously restrict multinational companies from pursuing satellite broadband in Taiwan, as such firms tend to operate wholly owned local subsidiaries to sell satellite broadband services.
For instance, Elon Musk’s SpaceX in July set up a wholly owned subsidiary in the Philippines and last week launched its Starlink satellite service in collaboration with a local partner. Japan became the first Asian country to deploy satellite-based system services when telecom operator KDDI announced the service last month, opening up the sector to enterprise and government customers.
Chunghwa Telecom last year expressed the desire to offer SpaceX’s Starlink services in Taiwan, but was prevented from taking further action due to a lack of related regulations. The nation’s biggest telecom operator said it constantly exchanges views on technology with SpaceX, but there is a slim chance that it would offer Starlink services in Taiwan this year. The telecom said it was technologically ready to provide the services, but that regulatory hurdles were a major roadblock.
Chunghwa Telecom has worked out a solution without SpaceX. The company is today to announce new satellite broadband services together with GPS device vendor Garmin. It is to use the US-Swiss company’s satellite technology and inReach Mini 2 device to help subscribers — hikers and campers especially — navigate with GPS, send and receive texts, and send emergency messages, when Chunghwa Telecom’s mobile services are not available.
To make LEO services available in Taiwan, the government must balance technological advancement and national security.
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