Satellite communication File photo: VCG

As China's satellite Internet of things (IoT) service moves into commercial trial operation, its launch is expected to lay a solid foundation for the construction of a new artificial intelligence (AI)-based industrial infrastructure capable of interaction and automated decision-making, a Chinese telecommunication company told the Global Times on Sunday.

The Ministry of Industry and Information Technology officially announced the launch at the opening ceremony of 2025 China "5G+ Industrial Internet" Conference on Saturday, according to a report by the People's Daily. The commercial trial will last for two years. 

Unlike the satellite internet that connects people with high-speed data, satellite IoT service refers to a low-speed data service that uses satellite communication technology to connect various IoT devices, providing wide-area connectivity for data collection terminals, wearable devices, handheld terminals and other types of terminals, as well as for vehicles such as automobiles, ships and aircraft.

The objectives of the satellite IoT service are to enrich the supply of satellite communication market services, stimulate the vitality of business entities, enhance industry service capabilities, establish a sound security supervision system, and develop replicable and scalable experiences and models through this trial. Ultimately, this will support the sound and healthy development of emerging industries such as commercial aerospace and the low-altitude economy, according to the report.

The trial launch comes as a number of Chinese companies are scaling up efforts to develop an integrated space-air-ground satellite internet. 

China Mobile, one of the country's three main telecom operators, said in a statement sent to the Global Times on Sunday that it is making a concrete effort to achieve breakthroughs in technologies involving both AI and the IoT. For example, it is promoting the integration of AI with 5G-Advanced, satellite communications and other technologies, to drive the upgrade from "individual intelligence" to "collective intelligence."

With regard to the application of satellite IoT, China Mobile has launched three major solutions for the logistics, electric power and water conservancy sectors, addressing issues such as "insufficient network coverage, high coverage costs and unstable communications," the company said. 

Chinese companies are also working to build a more complete satellite IoT service network. China Telecom's direct-to-handset satellite service covers 25 million mobile phone terminals and provides direct-to-vehicle satellite connectivity services for the vehicles of several leading enterprises.

This year, China Unicom has successfully launched four low-Earth orbit satellites. The company said that it will deepen the application of these satellites in scenarios such as emergency communications, maritime communications, and communications in remote areas, according to the People's Daily report.

In 2023, China's satellite communications market exceeded 80 billion yuan ($1.13 billion), the Securities Times reported, citing a research report from CITIC Securities. From 2024 to 2029, the market is projected to grow at a compound annual rate of about 15 percent, with the market size expected to surpass 200 billion yuan by 2029, the report said.