New satellite rules to drive China's trillion-yuan industry growth

China's newly released guidelines on satellite communication are drawing strong market attention and interest from industry experts, who see the policy as a major step toward unlocking a trillion-yuan market.

China will promote the high-quality development of the satellite communication industry by optimizing business access, according to new guidelines released by the Ministry of Industry and Information Technology on Wednesday.

The guidelines aim to promote the launch of satellite communication services and stimulate innovation in the commercial space sector. They also seek to foster new drivers of productivity, supporting China's transformation into a manufacturing and cyber power, as well as the construction of a Digital China.

By 2030, the country plans to improve the management system, policies and regulations for satellite communication and optimize its industrial development environment. It also plans to boost the integrated development of infrastructure, industrial supply, technical standards and international cooperation.

New business models such as direct satellite connection for mobile phones will be applied widely, with number of users expected to exceed 10 million.

Analysts note business access for the satellite communication industry is being continuously optimized, with license issuance expected to accelerate, fueling network deployment and commercialization. They believe the sector is approaching a turning point, with investment opportunities across service providers, satellite manufacturing, operations and ground equipment. Experts also highlight the growing potential of low-orbit constellations, direct-to-phone satellite services and space-based computing as key future growth drivers.

The country will support the accelerated development of low-orbit satellite internet, promote the application of direct satellite connection for mobile phones and other terminal devices, encourage the exploration of new satellite communication businesses, and expand market access for private enterprises.

They also encourage the use of satellite communication in various industries including agriculture, transportation, energy and urban governance. They promote the cross-integration of satellite communication with new-generation information infrastructure such as the industrial internet, vehicle networking and air-borne communication.

The guidelines state that China will also strengthen its development of key core technologies, build an open and shared standards system, and foster a mutually beneficial industrial ecosystem.

(With input from Xinhua)