BEIJING, Aug. 8 -- Industry analysts have hailed China's newly-launched satellite group as both a technological leap and a strategic move in the low Earth orbit internet industry.
The satellite group was sent into space on Tuesday from the Taiyuan Satellite Launch Center in Shanxi Province, north China.
The 18 satellites are the first batch of the first generation of Spacesail satellites. The Spacesail Constellation will provide global users with low-latency, high-speed and ultra-reliable satellite broadband internet services, according to launch service provider China Great Wall Industry Corporation.
The constellation's potential to provide seamless, high-speed internet access worldwide underscores China's commitment to bridging the digital divide and seizing opportunities in the burgeoning satellite internet sector, according to the latest research notes released by several securities brokerages.
WHAT IS SPACESAIL?
The Spacesail project commenced in 2023 and is set to unfold in three phases. The first phase, expected to conclude by the end of 2025, will see 648 satellites providing regional network coverage. By 2027, the second phase will expand this to global coverage with an additional 648 satellites.
The ambitious third phase, aiming for completion by 2030, plans to have a staggering total of 15,000 satellites offer mobile direct-connect multiservice integration. The year 2024 is projected to witness the launch of 108 satellites.
Analysts from Minsheng Securities highlight that China has planned three "ten-thousand-star constellations," with the Spacesail Constellation being one of them. The other two are the GW constellation, which aims to create a constellation of 13,000 satellites, and the Honghu-3 constellation, which plans to launch 10,000 satellites across 160 orbital planes.
The Spacesail satellites are designed using digitalization and modular production methods, which are expected to significantly enhance the efficiency of satellite development. The first batch of 18 commercial network satellites, each weighing 300 kg, utilizes a stackable flat satellite platform independently developed by a Shanghai aerospace firm.
The launch vehicle, the Long March-6A, is China's new generation of medium-lift hybrid rockets.
WHY IT MATTERS
The launch is a milestone in China's commercial aerospace history and a significant step into the global satellite internet arena.
Analysts from Huachuang Securities note that the deployment of satellite internet is of profound significance. It is imperative to seize strategic resources and embrace an integrated space and terrestrial network.
The scarcity of satellite frequency and orbital resources, governed by the "first come, first served" principle, adds urgency to the deployment. The International Telecommunication Union (ITU) stipulates that satellite frequencies and orbital resources must be fully deployed within seven years of declaration, or the scale of the declared constellation will be reduced.
The advent of mobile direct-connect services, following the release of smartphones equipped with "direct to device" capabilities, has opened up the civilian market for satellite internet.
The integration of satellite and terrestrial networks has achieved a significant breakthrough, with space-Earth communication expected to be closely integrated in the era of 6G communication, as envisioned by the ITU.
A research note by Kaiyuan Securities recognized the Tuesday launch of the first group of satellites as the beginning of building China's low Earth orbit internet constellation, calling it a landmark event in the history of China's commercial aerospace endeavors.
THE BIGGER PICTURE
Satellite orbits are primarily categorized into three types: geostationary Earth orbit (GEO), medium Earth orbit (MEO), and low Earth orbit (LEO).
Compared to the other two categories, LEO satellites boast several advantages, including proximity to Earth, minimal transmission latency, low link losses, and flexible launch capabilities. They are an integral component of the future integrated network that encompasses the sky, space, and sea.
China places great emphasis on the coordinated development of the GEO, MEO and LEO satellites to build an integrated space-Earth information network.
The satellite internet is recognized as part of the new infrastructure in the information sector, and was first included in the new infrastructure concept in April 2020 by the National Development and Reform Commission, the country's top economic planner.
The Ministry of Industry and Information Technology's 14th Five-Year Plan (2021-2025) for the information communication industry development targets the coordinated development of high, medium and low-orbit satellites and the deep integration of satellite communication systems with terrestrial information communication systems.
The Central Economic Work Conference in December 2023 defined commercial aerospace as a strategic emerging industry. The 2024 government work report proposed to actively create new growth engines such as bio-manufacturing, commercial aerospace, and low-altitude economy.
The Beijing, Shanghai, and Chongqing governments have also released plans for the aerospace information industry, providing fertile ground for the incubation and cultivation of the satellite internet industry.
On Aug. 6, the Ministry of Industry and Information Technology issued a guideline on innovating the management of the information communication industry and optimizing the business environment.
It mentioned orderly promoting the reform of the satellite internet business access system to better support the development of private telecommunications enterprises.
