Satellite IoT becoming of global strategic importance for connectivity and defense
China presses ahead with its IoT satellite strategy as it builds a space-based constellation for global connectivity – non-terrestrial networks provide new connectivity options but also raise considerations for approaches to HRVs in mobile communications.
A Smart Dragon-3 rocket launched into space on September 24 with a payload of 11 Geely-16 satellites, which were sent into a preset orbit. This marks the completion of the first phase of China’s plan to create a satellite Internet of Things (IoT) constellation. China now has a 64-satellite network that provides real-time, global (excluding polar regions) surface communications.
China builds satellite IoT constellation – targets global NTN
The Shanghai-based Geespace—the private satellite arm of Chinese automaker Geely Holding Group—is building a network of satellites through six launches since 2022. The ultimate target is to create a constellation of 5,676 satellites, facilitating direct satellite-to-smartphone connectivity, with the constellation acting as a “non-terrestrial network” (NTN).
Geespace partners include China Unicom, Geely Auto, and heavy machinery company Zoomlion. The ultimate aim of the satellite constellation is to support satellite-IoT capabilities for smart vehicles, industry, logistics, as well as enhanced interaction between NTNs and Public Land Mobile Networks (PLMNs).
NTN and PLMN interaction is a key goal of future 6G and space-based coverage is widely seen as supporting the goal of delivering ubiquitous global connectivity.[1] Once the constellation is operational, it is expected to serve 20 million users worldwide and transmit 340 million messages per day.
China will be the fastest growing satellite IoT country
Recent industry reports predict that China will become a global leader in satellite IoT.
According to Berg Insight, Geespace is a “high-profile” new initiative that will soon rival industry leaders Iridium, ORBCOMM, Viasat, and Globalstart to service the growing number of satellite-based IoT subscribers, which are projected to reach 32.5 million by 2029.
Future Market Insights predicts that China will be the fastest growing satellite IoT country – at 31.2% compound annual growth rate (CAGR)—between 2025 and 2035.[2] In comparison, Future Market Insights ranks the United States as sixth with a CAGR of 19.6% (behind China, India, Germany, France, and the United Kingdom, but just ahead of Brazil).
Seen in this light, China’s Geespace could be seen as a new global connectivity operator – and as a key partner for terrestrial operators seeking to extend coverage that may be too expensive by traditional means through partnerships with other connectivity providers.
Are space-based mobile networks “critical infrastructure”?
In the United States, Europe, and elsewhere, governments have taken action to limit exposure to high-risk vendors (HRVs) in critical network infrastructure—which includes the radio (RAN) and core domains of the land-based mobile network.
NTNs essentially shift this boundary into space, creating a new frontier. Regulators will likely consider whether networks that hand over direct device-level connectivity from PLMNs to NTNs such as new satellite-based constellations constitute critical infrastructure.
A serious argument can be made that NTNs are part of critical infrastructure. One of the attractions of NTNs is that they serve as backups to PLMNs, so when the latter’s connection is interrupted, NTNs can take over.
For example, while it is unlikely that a typical smartphone will default to NTN connectivity, it is also perfectly feasible that it will switch to a space-based network when land connections are unavailable. In addition, some smartphones could remain permanently connected to space-based networks – effectively bypassing local network options in the country in which it operates or when roaming.
In this manner, NTN providers are effectively part of a country’s critical national infrastructure.
Implications for 6G
NTNs are integral to the 6G vision, and with government-led projects delivering the infrastructure required, a different approach to handling HRVs may be required. 6G remains some way off, but these issues present challenges today—governments concerned about HRVs need to understand that space-based satellites essentially provide a new radio access option for land-based devices while also helping to meet remote and rural connectivity goals.
Stakeholders will need to balance these considerations and Pamir can help you understand the implications.
[1] \\https://www.itu.int/dms_pubrec/itu-r/rec/m/R-REC-M.2160-0-202311-I%21%21PDF-E.pdf\\
[2] \\https://www.futuremarketinsights.com/reports/satellite-iot-market\\
