Backed by the Ministry of Industry and Information Technology (MIIT), the initiative aims to position satellite communications as a key pillar of China's digital transformation and future 6G infrastructure. The MIIT's latest document sets out 19 measures across six focus areas, targeting more than 10 million satellite communication users and widespread smartphone-to-satellite connectivity by 2030.

The plan calls for reforms to licensing procedures, the creation of new service models, and closer collaboration between State-owned and private enterprises. It underscores the strategic importance of satellite communications for both national security and the development of "space-terrestrial fusion" technologies that combine orbiting and ground-based networks.

In September, the MIIT granted satellite mobile communication licenses to China Mobile and China Unicom, joining China Telecom, which already holds such authorization. The move signals an effort to expand market access and stimulate industry-wide growth.

Deng Wei, director of the space-terrestrial fusion technology research institute at the China Mobile Research Institute, described the guideline as a "forward-looking blueprint" that aligns China's satellite communication strategy with global trends. He said it provides a foundation for integrating satellite networks into national digital infrastructure.

The policy supports telecom operators in developing terminal devices capable of direct satellite connectivity and encourages the use of both high and low Earth orbit (LEO) resources through shared infrastructure. It also opens opportunities for private firms to enter the market via leasing and value-added services, helping to diversify offerings and promote healthy competition.

Li Xiayu, an engineer at the China Academy of Information and Communications Technology, said the measures would spur innovation in the satellite internet, satellite IoT and smartphone-satellite sectors, enhancing service coverage and network resilience.

Globally, satellite communications are viewed as a cornerstone for universal connectivity. According to the International Telecommunication Union, about 2.6 billion people remain offline as of the end of 2024, particularly in remote and maritime regions where traditional networks are impractical. LEO constellations, offering high-speed, low-latency coverage, are increasingly seen as the solution to closing this digital gap.

The United States currently leads the market through SpaceX's Starlink, which has launched over 9,100 satellites-more than 8,200 of which are operational-and serves over 6 million users across 120 countries. OneWeb in the UK and Telesat in Canada are also expanding their constellations, deploying hundreds of satellites to enhance regional and global coverage.

China's entry into the LEO domain began with the creation of China Satellite Network Group Co Ltd in 2021. The company launched its first batch of satellites in late 2024 and has since accelerated deployment, setting national records for high-density launches.

Telecom operators are likewise advancing satellite integration. China Telecom introduced the world's first satellite-direct smartphone service in 2023 and expanded it to vehicles in 2024, later extending coverage internationally to Laos. China Mobile, meanwhile, is leading global standardization efforts and collaborating with China Satellite Network Group to deliver Beidou messaging services, which now support over 490,000 users and connect 16 million terminals.

During major flooding in Beijing earlier this year, China Mobile provided free Beidou-based distress messaging in areas lacking conventional coverage, demonstrating the technology's value for emergency response.

Deng said China Mobile will continue pursuing "terrestrial empowerment and space-terrestrial fusion," expanding broadband and mobile-satellite services to reinforce national connectivity and strengthen China's leadership in 6G innovation.

Local governments are also supporting the national strategy. Hainan province is building an aerospace industrial cluster at Wenchang, centered on satellite manufacturing, launch operations and data services. The province expects the site to generate more than 10 billion yuan in annual revenue by 2027.

Wenchang's satellite super factory is scheduled for completion by the end of October, providing critical capacity for China's expanding constellation programs. Meanwhile, upgrades to the Hainan commercial launch site are expected to increase its combined annual capacity to 32 liquid-fueled missions, a milestone for the country's reusable rocket development.

Analysts from Minsheng Securities and Orient Securities project that private aerospace manufacturers could boost their production from 300 to as many as 600 satellites per year within the next few years, signaling strong momentum toward a fully integrated, large-scale satellite communication ecosystem in China.

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