In an era where digital connectivity defines the pace of global progress, China is marking big strides in satellite communication. Backed by robust government policies, state-owned enterprises, and a growing number of private companies, the country is determined to carve out a significant presence in this nascent yet strategically vital industry. The satellite communication sector, once a niche domain, is now at the forefront of China’s digital transformation, promising to bridge the digital divide and secure its position as a global leader in telecommunications.
To seize the critical opportunity for high-quality development of the satellite communication industry, the Ministry of Industry and Information Technology (MIIT) recently issued a guideline to achieve large-scale application of new models and formats such as direct smartphone-satellite connectivity by 2030, with satellite communication users exceeding 10 million. The comprehensive document also outlines 19 specific measures across six key areas, aiming to optimize the licensing process for satellite communication services, regulate the opening of these services, and propel the industry toward sustained growth.
MIIT officially awarded China Unicom and China Mobile licenses to operate satellite mobile communication services last month, in a signal that the country is optimizing market access to promote the development of the satellite communication industry. China Telecom, the other Big Three telecom operator in the country, already has such a license. The MIIT document also underscores the importance of satellite communication in ensuring national space security and advancing the development of 6G technology, where the integration of space and terrestrial networks (known as “space-terrestrial fusion”) is a defining feature. Deng Wei, Director of the Space-terrestrial Fusion Technology Research Institute at the China Mobile Research Institute, said the move by MIIT represents a forward-looking strategy to align China’s satellite communication sector with global trends. It also serves as a strategic blueprint for the future of the industry, offering clear guidance for stakeholders aiming to build integrated space-terrestrial networks. The document proposes several transformative measures to stimulate the growth of the satellite communication industry. These include supporting telecom operators in developing terminal devices that can directly connect to satellites, leveraging high and low earth orbit satellite resources through shared infrastructure, and accelerating the transition of satellite communication applications from specialized to mass-market use.
Experts have lauded these measures, noting that the “state-owned + private-owned” partnership model reflects China’s commitment to fostering a dynamic and inclusive industrial ecosystem. By encouraging collaboration between state-owned enterprises and private companies, the guideline aims to unlock innovation and drive the sector’s expansion. By supporting the development of satellite internet, satellite-connected smartphones, and satellite internet of things (IoT), MIIT will enhance infrastructure, improve service capabilities, and ensure comprehensive coverage across the country. The importance of satellite communication is not limited to China, it is a global imperative.
According the International Telecommunication Union (ITU), nearly 2.6 billion people worldwide – about one-third of the global population – remained unconnected to the internet as of end-2024. Remote mountainous regions, oceans and deserts continue to suffer from inadequate or nonexistent connectivity, often referred to as “signal deserts”. Satellite communication, particularly LEO satellite internet, offers a solution to this challenge by providing low-latency, high-bandwidth connectivity that can seamlessly cover these underserved areas. It is poised to address the “last mile” problem and bridge the digital divide, serving as a critical enabler of global connectivity.
The global satellite communication landscape is evolving rapidly, with countries and companies investing heavily in satellite constellations. In the United States, SpaceX has launched over 9,100 Starlink satellites. The UK’s OneWeb has deployed 648 LEO satellites, establishing the world’s second-largest LEO constellation. Meanwhile, Canada’s Telesat is developing the Lightspeed constellation, comprising 198 satellites. China, though a late entrant, is rapidly catching up. In 2021, the country established the China Satellite Network Group Co to build an LEO satellite constellation. Companies like China Satellite Network Group Co and Spacesail are driving this ambitious project forward. However, the gap between China and global leaders remains significant, underscoring the need for accelerated development, experts said.
The size of the satellite communication market in China reached CNY35.3 billion in 2024 and is projected to grow to CNY37.6 billion this year, according to a report by AskCI Consulting, as reported by the China Daily.
