China has launched a two-year commercial trial programme for satellite Internet of Things (IoT) services, a move designed to expand low-Earth-orbit (LEO) connectivity and speed up adoption of non-terrestrial IoT across key industries. The initiative was announced in Wuhan during the 2025 China “5G + Industrial Internet” Conference.
A New Phase for China’s Satellite IoT Ambitions
The commercial trial will run for 24 months and allow approved enterprises to deploy and validate satellite-based IoT services in large-scale, real-world conditions. Target sectors include smart logistics and transportation, energy and utilities, environmental monitoring, agriculture and forestry, emergency response, maritime operations, and industrial internet applications.
Satellite IoT is positioned as a complement to terrestrial cellular networks, offering wide-area connectivity for low-bit-rate devices in areas where 4G/5G coverage is weak or economically impractical. This approach matches the direction of emerging hybrid terrestrial–satellite standards and early deployments already visible in the global ecosystem, where NTN integration with 5G core networks and NB-IoT-over-satellite proofs of concept are moving toward commercial scale.
Regulatory Framework and Technical Requirements
Participating companies must meet MIIT rules on registration, terminal certification, spectrum use, security compliance, and periodic performance reporting during the trial.
Operators Accelerate Satellite IoT Deployment
China’s national telecom operators are already scaling satellite IoT pilots, particularly for logistics tracking, remote utility monitoring, and water-conservancy infrastructure. In parallel, new LEO launches intended for emergency, maritime, and rural connectivity are helping build the foundations of an integrated “space-air-ground” communications stack. Similar acceleration is underway worldwide as the satellite IoT competitive landscape tightens and LEO constellation capacity expands rapidly.
Industry estimates cited by Chinese media suggest China’s satellite communications market exceeded RMB 80 billion (around USD 11 billion) in 2023 and could sustain double-digit annual growth through the second half of the decade, as commercial satellite IoT moves from trials to scaled licensing.
Strategic Context: China Eyes Leadership in NTN and LEO Constellations
Non-terrestrial networks (NTN)—including satellite IoT, satellite broadband, and future direct-to-device services—are becoming a core layer of China’s next-generation infrastructure strategy. The trial supports faster domestic LEO constellation deployment, hybrid 5G/NTN service models, and industrial use cases requiring ubiquitous coverage.
Outlook
The two-year satellite IoT commercial trial gives vendors, operators, and industrial customers a controlled framework to validate real-world performance, security safeguards, and operational models ahead of full market rollout. If successful, it could accelerate nationwide availability of low-cost, low-power satellite IoT services and strengthen China’s position in the rapidly expanding global NTN ecosystem.
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