What's Happening?
China has significantly increased its low-earth orbit (LEO) satellite launch program, deploying 48 satellites in the past month. The latest launch involved a Long March rocket carrying ten satellites from the Hainan space center. This marks the sixth launch since July 27, primarily supporting China Starnet, a government-owned network. Both China Starnet and Shanghai Yuanxin, controlled by the Shanghai city government, are developing satellite constellations comparable to Starlink. Starnet has secured 13,000 LEO slots through the International Telecommunication Union (ITU), while Yuanxin has booked 15,000 slots. Despite the ambitious plans, both companies currently have only a few dozen satellites in orbit. The Ministry of Industry and Information Technology (MIIT) is preparing to issue five satellite Internet licenses, likely to major players including China Starnet, Shanghai Yuanxin, and the three major telecom operators: China Mobile, China Telecom, and China Unicom.
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Why It's Important?
China's accelerated satellite launch program underscores its commitment to expanding its space capabilities and enhancing global connectivity. The development of LEO satellite networks is crucial for supporting advanced telecommunications, including 5G and 6G integration. This expansion could position China as a significant player in the global satellite internet market, potentially challenging existing providers like Starlink. The issuance of satellite Internet licenses by MIIT indicates a strategic move to dominate the emerging sector, despite intentions to boost competition by allowing private companies to enter the industry. The involvement of major telecom operators suggests that the government aims to leverage existing infrastructure to maximize the commercial potential of satellite services.
What's Next?
The continued expansion of China's satellite networks will likely lead to increased competition in the global satellite internet market. As China Starnet and Shanghai Yuanxin develop their constellations, they may seek international partnerships to enhance their commercial reach. The MIIT's licensing decisions will shape the industry's structure, determining whether new satellite service providers will operate as wholesalers or compete directly with established telecom operators. The strategic focus on satellite technology may also drive further innovation in telecommunications and space exploration.
