China is rapidly advancing plans to deploy commercial low-Earth orbit (LEO) satellite internet services, aiming to build domestic alternatives to SpaceX’s Starlink, according to reporting by the South China Morning Post.
This week, the Ministry of Industry and Information Technology (MIIT) published guidelines indicating support for operators of LEO constellations to begin commercial trials “at an appropriate time.” The ministry encouraged telecom providers to expand satellite internet use beyond basic voice and text, promoting high-speed data services and stronger integration between terrestrial and space-based networks.
Developing China’s alternatives to Starlink
Two major state-backed initiatives — Spacesail (also known as Qianfan) and GuoWang — are at the forefront of China’s effort to establish national LEO satellite systems. Both projects have started launching satellites, though they remain well behind Starlink in terms of scale; SpaceX now operates thousands of satellites offering near-global coverage.
MIIT’s guidance asks companies to identify new commercial applications for satellite internet and to leverage existing satellite infrastructure more effectively. The ministry noted that satellite internet is moving rapidly from specialized use cases into everyday devices like phones, cars and drones, creating fresh opportunities for growth.
The guideline calls for a staged opening of the market, with regulatory rules adjusted to suit different types of enterprises. Since 2020, China has treated satellite communications as a strategic area, directing funding and policy support to accelerate development.
Market potential and forecasts
LEO satellite connectivity is expected to be especially valuable for enterprises operating Internet of Things (IoT) devices in remote, offshore or sparsely covered regions. Research firm Omdia projected in July that satellite IoT connections will expand at an average annual rate of 23.8% through 2030.
China already runs mature geostationary and medium/high-orbit satellite systems for navigation, weather and communications. MIIT urged telecom operators to collaborate with satellite firms to widen the use of high-orbit systems like BeiDou — China’s global navigation satellite system — and to accelerate satellite-to-phone and similar services.
Recent deployments and regional moves
Spacesail, supported by Shanghai’s municipal government, conducted its first batch LEO launch in August 2024 and had roughly 90 satellites in orbit by July. GuoWang, backed by Beijing authorities, launched its first satellites later in 2024 and has intensified deployments, sending multiple batches into orbit in recent months.
Provincial governments are also promoting local space industries. Guangdong province, for example, recently announced plans to expand its domestic space sector, offering government support and faster regulatory approvals for satellite projects.
Competition with Starlink and the road ahead
Analysts say China’s LEO rollout has entered an “important phase,” with operators racing to increase satellite counts as low-Earth orbit becomes more congested. Some market observers describe the effort as effectively “first-come, first-served” for orbital capacity and service traction.
Research notes from securities firms suggest the licensing process for satellite communications may accelerate, paving the way for formal commercial service approvals. Industry sources have indicated that China could soon grant initial licences to the three state-owned telecom giants — China Mobile, China Telecom and China Unicom — enabling them to offer satellite-enabled services.
Even so, analysts caution it may take two to three years before China’s LEO services approach the scale and coverage of Starlink. By comparison, SpaceX began public trials in October 2020 after already deploying more than 800 satellites.
(Photo credit: ANIRUDH)
How satellite and IoT trends are reshaping networks
As LEO constellations and high-orbit systems expand, telecom operators and satellite firms are exploring integrated solutions that combine 5G, edge computing and satellite connectivity to serve enterprise customers, remote industries and consumer devices. These converged networks aim to improve coverage, lower latency for certain applications, and enable resilient communications where terrestrial infrastructure is limited or absent.
China’s strategic push, backed by government funding and regulatory adjustments, reflects the broader commercial potential for satellite-enabled services across logistics, shipping, energy, agriculture and critical infrastructure monitoring. The coming years will determine how quickly domestic operators can scale their constellations, secure spectrum and licensing, and roll out practical services that meet global competition.
Telecoms News is powered by TechForge Media.