The transformation of China's satellite communication landscape has been nothing short of remarkable, especially when one considers that it all began with the launch of "Dong Fang Hong 1," the nation's first satellite, back in 1970. Fast forward over five decades, and the advancements in space bandwidth resources have skyrocketed—witnessing gains of 10 to 100 times in capacityExperts predict that low Earth orbit constellations could see bandwidth growth expand by around tenfold in the next five to eight yearsEssentially, China stands at the threshold of a Cambrian explosion in satellite communications, ushering in an era of unprecedented capabilities and opportunities.

Moreover, the last decade has seen the rapid rise of the commercial aerospace industry, which has fundamentally reframed the satellite communication marketZhang Haiming, the General Manager of Wangling Technology, highlighted in a recent interview that creating exceptional products to serve the public is the bedrock of China's ambitions in commercial space

He proclaimed that cost-effective satellite communication products would ignite meaningful exploration and experimentationWith around 20 start-ups in the rocket sector and multiple high-throughput satellites being developed, there are major investments pouring into at least two upcoming low Earth orbit constellations, each demanding hundreds of millions in capitalRealizing returns from such colossal investments relies heavily on the proliferation of terminal devices and their applications.

However, the traditional satellite communication sector has been shackled by its high costs, heavily customized solutions, and a focus on government contractsConsequently, the products and services that have proliferated could no longer satisfy the demands of industries evolving in the wake of digital and consumer technology revolutionsAs has been corroborated across various sectors, the rule seems clear: those who connect with consumers dominate the market

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The part of the supply chain that links users often holds the greatest value.

In this context, Wangling recently launched its satellite internet device—distinct from existing satellite phone functionalities that mobile manufacturers have exploredThis innovative product allows users to connect directly to satellites, providing them with Wi-Fi services to engage in various mobile activities including short video streaming and live broadcastingThis move aims to democratize broadband satellite communications and broaden the scope of accessibility.

Zhang articulated three fundamental prerequisites for elevating satellite broadband from a niche to a mainstream market: first, the immense expansion in satellite capacity; second, the commercialization and market orientation of the entire satellite industry chain; and third, the essential vehicle that connects satellites to users, which is the satellite terminal itself

He stressed that achieving these innovations requires a departure from traditional frameworks, embracing fresh methodologies to navigate the new era of aerospace.

Transformations, however, are never straightforward.

Coming from a traditional satellite background, Zhang acknowledged that the prevailing paradigm within the sector is generally conservative, characterized by high costs and lengthy production cycles for bespoke satellitesHe explained that the industry has been dominated by a handful of companies, such as Lockheed Martin, Boeing, and Airbus, alongside China's domestic entities, who have often confined themselves to a narrow market focused on military and government contracts"Now we see a disruptive force emerging, as seen with projects like Starlink, which challenge the conventional satellite industryRockets can now be reused, and terminals can be mass-produced to reduce prices and widen market accessibility," he added.

While a number of individuals within China's satellite sector recognize the urgent need for reform and innovation, they grapple with the challenges associated with this capital-intensive industry and reasonable expectations for return on investment

Huang Xu, Secretary-General of the China Satellite Application Conference, pointed out that the upper echelon of commercial space entails satellite manufacturing and rocket development, whereas the downstream portion encompasses terminal devices and ground applicationsHe underscored the complexities of technological development in the upstream as "knowing the challenges are easy but turning knowledge into action is difficult." Conversely, the challenge in the downstream sector lies in targeting consumers and converting traditional clients from government and enterprise to individual users.

"In the sector, investment levels remain significant, yet the sustainability of business models is contingent on the terminal," he continued, stressing the importance of reducing costs dramatically while ensuring that products suit the needs of individual consumersZhang Haiming remarked, "For mobile phones connecting directly to satellites, we face challenges

For a long time, this will likely be limited to narrowband communications, and developing broadband internet connections remains fraught with challenges, predominantly concerning frequency limitations." He explained that current frequencies available for direct mobile satellite connections are insufficientFor instance, connecting Huawei devices to the Tiantong-1 satellite facilitates narrowband communication and only basic functions such as voice calls or text messages—actual video or photo transmission is still a daunting hurdle.

Looking forward, industry experts assert that multi-frequency, multi-orbit, and multi-satellite access represent burgeoning trends in satellite communicationYao Fahai, Chief Engineer from China Satcom, echoed this sentiment, suggesting that the demand for high capacity, high-throughput satellites would necessitate a shift toward high-frequency satellite communication solutions, particularly in consumer internet domains.

The consumer satellite communication market remains a formidable challenge, primarily due to heightened barriers to entry

With the industry traditionally catering to military, governmental, and corporate clients, commercial ventures have found it arduous to gain a foothold"The satellite communication market's evolution began with military patrons but has transitioned to include broader consumer bases, something foreign entities have been more effective in accomplishing compared to domestic players," noted Xiang Jun, former General Manager of the satellite communication division at Gigabyte Technology.

So, how can companies tap into this burgeoning consumer market? Many in the industry view historical lessons from the internet's evolution as vital guidesThis includes lowering the technical thresholds of satellite technology and ensuring that devices are user-friendly and accessible, particularly at price points that accommodate a broader spectrum of society.

Historically, traditional satellite antennas weighed dozens of kilograms and were only suitable for vehicle-mounted applications, all while necessitating specialized training to operate

Adventure travelers, outdoor workers, nomadic herders in remote regions, and disaster relief teams, all have a pronounced need for accessible and easily operable satellite internet solutionsTake the Xinjiang area, for example; the number of visitors entering the desert regions approaches 5 million annually, yet they struggle to find portable, user-friendly satellite internet devices.

In maritime contexts, smaller antennas—preferably under one meter—have become the standard for vessel-mounted installationsAs Li Jie, President of Asia-Pacific Satellite Broadband Communication Co., noted, vessels with antennas exceeding one meter must enter docking facilities post-arrival, while those equipped with smaller antennas do not face this requirementHe explained, "This scenario made it clear how downsizing antennas can enhance convenience and stimulate market growth." Yet, turning this aspirational demand into tangible commercial products is another hurdle entirely.

Liu Yu, the Executive Vice President of Wangling, explained that the challenge of miniaturizing these devices was daunting: "Transforming a bulky desktop system into a portable laptop necessitates a comprehensive redesign of the framework, wherein we need to make certain components 'disappear' without compromising functionality." She remarked that upstream manufacturers have yet to provide adequate solutions that would allow them to shrink component sizes without sacrificing performance.

Ultimately, Zhang Haiming recognized that positioning Wangling's satellite internet devices as consumer electronics necessitates targeting a sales scale of at least 100,000 units to establish an economic ecosystem around consumer-oriented satellite internet.

What defines a successful satellite internet ecosystem? The Huawei Mate 60 series smartphones serve as an illustrative example—they have successfully promoted the concept of "satellite communication" and achieved significant sales volumes

However, their integration of features like "Beidou short messages" and "Beidou satellite calls" caters solely to emergency situationsSuch narrowband applications cannot foster a thriving ecosystem, whereas broadband satellite networks can—enabling activities like live streaming in remote areas bereft of terrestrial signals, where satellite internet plays a critical role as a productivity tool.

However, the notion of satellite communication remains nebulous for many in China's vast populationXiang Jun suggests that this ambiguity arises from the rapid proliferation of mobile internet, which has outpaced global developments in scope and extentFurthermore, products or services catering to consumer needs have woefully lagged.

After two years of exploration, Wangling's vice president of sales, Zhu Lin, confidently states, "There's potential for over a million users for satellite broadband communication in China." He cites the fact that around 60% of territory in Western China lacks network coverage, with nearly 2 million nomadic herders inhabiting these areas without internet connectivity for over six months each year

Similarly, China possesses around 3 million square kilometers of maritime territory—certain fishing vessels have already implemented satellite broadband technology, but challenges in affordability and user experience remain significant barriers to full market penetrationAdditionally, emergency services, once the realm of state-owned enterprises, are increasingly accessible, yet communities in lesser-populated Western provinces still face significant deficits in availability.

Zhu Lin remarked that, looking back over the decades, satellite communication products have predominantly served applications in sectors such as emergency response, oil exploration, water management, and power—primarily benefiting these cohortsHistorically, their high cost and specialized operational requirements have prevented satellite communications from penetrating underserved markets.

Notably, apart from Western provinces, coastal regions and central China have witnessed the increased adoption of satellite technology across various applications

Different consumers—residential, tourism-focused, and industry specific—display broad but fragmented demandIn this context, Xiang Jun poignantly notes that consumer awareness of satellite broadband products remains almost nonexistent apart from government and corporate usersTherefore, for satellite internet products to proliferate into the consumer market, they must confront three significant challenges: lack of awareness, limited accessibility, and inadequate availabilityThese obstacles highlight the necessity for innovative marketing strategies and sales channels aligned with satellite internet products to successfully navigate the shift into consumer-oriented markets.

Ultimately, with a population of 1.4 billion, as Xiang Jun cogently states, "Even capturing 0.1% of demand represents a market of 1.4 million users—a substantial segment for the satellite communication industry."