August 2025
Amendments to the Telecommunications Management Act: Reinstating Regulatory Requirements for Two Types of Telecommunications Service Providers (Taiwan)
To prevent fraud syndicates from abusing subscriber number resources, the Legislative Yuan passed amendments to certain provisions of the Telecommunications Management Act (“Act”) on June 17, 2025, which were promulgated by the President on July 2, 2025. The amendments stipulate that operators providing “wholesale and resale of subscriber numbers services” and “internet access services” are required to register as telecommunications enterprises. The amendments also introduce corresponding penalties and transitional periods.
Since the enactment of the Act in 2019, and following a three-year transitional period, the Act has fully replaced the former Telecommunications Act. Prior to this amendment, only operators that applied for the allocation of radio frequencies, the assignment of identification codes or signal point codes for the establishment of public telecommunications networks, the assignment of subscriber numbers, or that needed to negotiate interconnection or apply for a ruling with other telecommunications enterprises, were required to register as telecommunications enterprises. All other operators were subject to a voluntary registration regime. However, this system allowed certain Type II telecommunications enterprises under the former Telecommunications Act to continue operating without registration, thereby becoming a major source from which fraud syndicates obtained subscriber numbers.
To close this loophole and strengthen regulatory oversight, the amended Paragraph 2 of Article 5 of the Act now requires the following operators to register as telecommunications enterprises with the competent authority:
1. Operators providing wholesale and resale of subscriber numbers services: Referring to those who lease or purchase telecommunications services bundled with subscriber numbers from other telecommunications enterprises that have been assigned such numbers, on a wholesale basis, and resell the services to subscribers under their own name, such as Mobile Virtual Network Operators (MVNOs).
2. Operators providing internet access services: Referring to those who provide subscribers with Internet Access Services (IASPs).
Furthermore, considering that operators providing Internet Access Services vary in operational scale, risk control capacity, and impact on public interests, Paragraph 3 of Article 5 has been added to provide that the competent authority may adopt tiered management for operators providing Internet Access Services under Subparagraph 2, Paragraph 2 of Article 5. Such tiered management may apply to matters including the application for or amendment of telecommunications enterprise registration, as well as the application for or amendment of approval for public telecommunications network establishment plans, taking into account factors such as telecommunications service revenue, number of subscribers, and other relevant considerations.
In addition, under the amended Subparagraph 1, Paragraph 1 of Article 79, operators in the above two categories that fail to register as a telecommunications enterprise in accordance with the Act shall be subject to a fine of not less than NTD 100,000 and not more than NTD 1,000,000, and shall be ordered to make corrections within a prescribed period. Failure to do so within that period may result in consecutive fines. To minimize operational disruption to existing operators, the amendments also provide for a one-year transition period, allowing those already providing such services prior to the amendment to adjust their business models and comply with the reinstated regulatory requirements. We recommend that relevant operators comply with the above regulations and register as telecommunications enterprises with the competent authorities to avoid penalties for violations.
Since the enactment of the Act in 2019, and following a three-year transitional period, the Act has fully replaced the former Telecommunications Act. Prior to this amendment, only operators that applied for the allocation of radio frequencies, the assignment of identification codes or signal point codes for the establishment of public telecommunications networks, the assignment of subscriber numbers, or that needed to negotiate interconnection or apply for a ruling with other telecommunications enterprises, were required to register as telecommunications enterprises. All other operators were subject to a voluntary registration regime. However, this system allowed certain Type II telecommunications enterprises under the former Telecommunications Act to continue operating without registration, thereby becoming a major source from which fraud syndicates obtained subscriber numbers.
To close this loophole and strengthen regulatory oversight, the amended Paragraph 2 of Article 5 of the Act now requires the following operators to register as telecommunications enterprises with the competent authority:
1. Operators providing wholesale and resale of subscriber numbers services: Referring to those who lease or purchase telecommunications services bundled with subscriber numbers from other telecommunications enterprises that have been assigned such numbers, on a wholesale basis, and resell the services to subscribers under their own name, such as Mobile Virtual Network Operators (MVNOs).
2. Operators providing internet access services: Referring to those who provide subscribers with Internet Access Services (IASPs).
Furthermore, considering that operators providing Internet Access Services vary in operational scale, risk control capacity, and impact on public interests, Paragraph 3 of Article 5 has been added to provide that the competent authority may adopt tiered management for operators providing Internet Access Services under Subparagraph 2, Paragraph 2 of Article 5. Such tiered management may apply to matters including the application for or amendment of telecommunications enterprise registration, as well as the application for or amendment of approval for public telecommunications network establishment plans, taking into account factors such as telecommunications service revenue, number of subscribers, and other relevant considerations.
In addition, under the amended Subparagraph 1, Paragraph 1 of Article 79, operators in the above two categories that fail to register as a telecommunications enterprise in accordance with the Act shall be subject to a fine of not less than NTD 100,000 and not more than NTD 1,000,000, and shall be ordered to make corrections within a prescribed period. Failure to do so within that period may result in consecutive fines. To minimize operational disruption to existing operators, the amendments also provide for a one-year transition period, allowing those already providing such services prior to the amendment to adjust their business models and comply with the reinstated regulatory requirements. We recommend that relevant operators comply with the above regulations and register as telecommunications enterprises with the competent authorities to avoid penalties for violations.
