China is moving quickly to develop commercial low-orbit satellite internet services, aiming to build its own competitors to SpaceX’s Starlink, according to the South China Morning Post.
This week, the Ministry of Industry and Information Technology (MIIT) released a guideline saying it would back operators of low-orbit constellations in starting commercial trials “at an appropriate time.” The ministry urged telecom providers to use satellite internet for more than voice and text, encouraging them to expand high-speed data services and link land- and space-based networks.
Building China’s Starlink alternatives
Two large state-backed projects – Spacesail, also called Qianfan, and GuoWang – are leading China’s efforts to create its own low-orbit satellite systems. Both have started launching satellites, though they are still far behind Starlink, which has thousands of satellites in orbit providing near-global coverage.
MIIT’s guidelines companies to look for new uses of satellite internet and make the most of existing systems. “Satellite internet is rapidly expanding from specialised use to everyday devices like phones, cars and drones, potentially creating new growth opportunities,” the ministry said.
The document called for a gradual opening of the market, with rules adjusted for different types of enterprises. China has treated satellite communications as a priority sector since 2020, offering funding and policy support to speed progress.
Market potential and projections
Satellite connections are seen as especially useful for companies running internet-of-things (IoT) devices in remote or offshore areas. A July report from research firm Omdia projected that satellite IoT connections will grow at an average rate of 23.8% a year through to 2030.
China operates a mature high-orbit satellite network used for navigation, weather, and communications. The guideline suggested telecom operators should work with satellite firms to expand the use of high-orbit systems like BeiDou – China’s equivalent to GPS – and accelerate satellite-to-phone services.
Recent progress
Spacesail, backed by Shanghai’s municipal government, became the first Chinese project to launch a batch of low-orbit satellites in August 2024, with around 90 in orbit by July this year. GuoWang, backed by Beijing, launched its first satellites later that year and has since stepped up deployments, sending five batches into orbit in the past two months.
Other regions are also moving into the field. Earlier this month, Guangdong province announced plans to grow its local space industry, pledging government support and faster approvals for satellite projects.
The race against Starlink
Analysts say China’s rollout has reached an “important phase,” with operators racing to launch more satellites as space in low Earth orbit becomes increasingly crowded. Guotai Haitong Securities described it as a “first-come, first-served” competition.
CITIC Securities wrote in a research note that the licensing process for satellite communications is likely to speed up soon, giving formal backing for commercial services. Industry sources told IT Times that China could grant its first licences to the three state-owned telecom companies – China Mobile, China Telecom, and China Unicom – in the near future.
Still, it may take two to three years before China’s satellite internet services can reach the scale of Starlink. One source pointed out that even SpaceX began public trials in October 2020, when it already had more than 800 satellites in orbit.
