Accelerating Satellite-to-Phone Services: A Trillion-Dollar Market in the Making

Satellite-to-phone services are accelerating in China after new policy moves from the Ministry of Industry and Information Technology (MIIT) (Gongye He Xinxi Hua Bu 工业和信息化部).

MIIT’s Satellite Communication Policy (August 2025)

Category	Description
Document Release	“Guiding Opinions on Optimizing Business Access and Promoting the Development of the Satellite Communication Industry” (August 27, 2025)
Key Measures	19 concrete measures to accelerate adoption and industry growth
Expected Outcomes	Orderly market expansion, continuous development of application scenarios, growth of industrial ecosystems
2030 User Target	Over 10 million satellite communication users (cited by CCTV)

Quick snapshot — what changed and why it matters

The MIIT issued the “Guiding Opinions on Optimizing Business Access and Promoting the Development of the Satellite Communication Industry” (Guanyu Youhua Yewu Zhunru Cujin Weixing Tongxin Chanye Fazhan De Zhidao Iijian 关于优化业务准入促进卫星通信产业发展的指导意见) on August 27, 2025.

The document lays out 19 concrete measures to accelerate satellite communication adoption and industry growth.

The government expects the reforms to promote orderly market expansion, spur continuous development of application scenarios, and encourage the growth of industrial ecosystems.

China aims to reach over 10 million satellite communication users by 2030, according to official guidance cited by CCTV (Zhongguo Zhongyang Dianshi Tai 中国中央电视台).

Core Policy Goals for Satellite Communication

Priority Area	Description
Accelerated LEO Satellite Internet Development	Drive collaborative innovation, move towards global broadband coverage.
Direct Satellite-to-Device Services	Enable telecom operators through co-construction models using high and low orbit resources.
Commercial Trials for Satellite IoT	Explore new satellite communication services with private sector participation.

Core policy goals — three reform priorities

A MIIT official summarized the reform focus across three main areas.

1. Support accelerated development of LEO satellite internet to drive collaborative innovation across the industry chain and move toward global broadband coverage.

2. Support telecom operators in offering direct satellite-to-device services through co-construction and sharing models that make use of both high and low orbit satellite resources.

3. Organize commercial trials for satellite Internet of Things (IoT) (Wu Lian Wang 物联网) and explore new satellite communication services with the private sector.

These steps are designed to move satellite communication from specialized use cases into mass-market applications.

What the tech looks like today

Industry experts note steady improvements in satellite communication technology and application capabilities in China.

Zhang Haiyi (张海懿), Director of the China Academy of Information and Communications Technology (CAICT) (Zhongguo Xintongyuan 中国信通院) Technology and Standards Research Institute, said LEO satellite internet is entering a phase of large-scale constellation deployment.

Geostationary high-throughput satellites now offer single-satellite capacities exceeding 100 gigabytes per second, according to industry commentary.

Private enterprises are actively promoting LEO satellite IoT constellations and accelerating direct satellite-to-phone connectivity for broad application.

Where applications will expand

The guiding opinions highlight three top application directions for expansion.

• Emergency communication — resilient, out-of-network connectivity for disasters and remote response.

• Digital public services — enabling government and public-sector services in areas with weak terrestrial coverage.

• Integrated innovation — combining satellite and terrestrial networks to unlock new consumer and industrial use cases in mobile phones, automobiles, and drones.

Industry insiders expect satellite communication to form a new market worth trillions of Chinese Yuan (¥ RMB, $USD equivalent) as these scenarios scale.

Why this is strategic for telecom operators and startups

Policy-driven market access makes it easier for both incumbent operators and private startups to experiment, collaborate, and scale satellite-enabled services.

Expect these outcomes over the next wave of commercialization:

• Direct-to-device services go mainstream: phone manufacturers and carriers can offer satellite fallback or hybrid connectivity without requiring specialized terminals long-term.

• Co-built infrastructure: sharing LEO and GEO resources reduces cost and accelerates coverage buildout.

• LEO IoT constellations: private players can deploy targeted small-sat constellations for verticals like logistics, agriculture, energy, and industrial monitoring.

Investor & founder playbook — practical ideas

If you’re an investor, founder, or product leader, here are high-leverage areas to watch.

• Satellite-to-device protocols and SDKs that enable seamless fallback and hybrid routing between cellular and satellite links.

• Edge and device power management solutions that preserve battery life while maintaining satellite connectivity.

• Vertical applications — SaaS products that embed satellite connectivity into emergency services, field operations, and mobile-first industries.

• Partnership plays — carriers, phone OEMs, and satellite operators who can co-develop product bundles and distribution channels.

Standards, regulation, and ecosystem signals

Policy clarity from MIIT reduces regulatory risk for pilots and commercial trials.

CAICT’s technical commentary points to maturation in standards and capacity planning, which helps vendors and carriers design interoperable solutions.

Organized commercial trials for satellite IoT open the door to private enterprise participation and faster market feedback loops.

Risks and open questions

Even with policy support, a few practical challenges remain:

• Device cost and integration: how quickly handset OEMs incorporate satellite radios and keep consumer pricing attractive.

• Spectrum coordination: ensuring coexistence between terrestrial and satellite services.

• Business models: designing subscription, per-minute, or hybrid pricing that consumers and enterprises adopt.

Linking opportunities for content & partnerships

Use these anchor topics to build SEO-centered internal links and partner outreach.

• MIIT satellite policy pages and updates.

• CAICT research on LEO and GEO satellite performance.

• Carrier pages describing direct-to-device satellite services and enterprise offerings.

• Case studies on emergency communication using satellite backup.

Bottom line for the community

The MIIT move and CAICT signals show a coordinated push toward integrating satellite connectivity with terrestrial mobile networks.

This creates product, investment, and partnership opportunities across hardware, network services, and vertical SaaS.

Satellite-to-phone services are positioned to grow from niche to mainstream as policy, capacity, and commercial trials converge.

References

• 手机直连卫星业务要加速普及了！卫星通信有望形成万亿级市场 – CCTV News Client (央视新闻客户端)
• CCTV Official Website – CCTV (中国中央电视台)
• 工业和信息化部印发《关于优化业务准入促进卫星通信产业发展的指导意见》 – Ministry of Industry and Information Technology (工业和信息化部)
• China Academy of Information and Communications Technology (CAICT) Official Website – CAICT (中国信息通信研究院)