China has initiated a two-year commercial pilot to test satellite Internet of Things (IoT) services, with the aim of expanding connectivity in sectors that remain underserved by existing 4G and 5G networks. The announcement came during the 2025 China “5G + Industrial Internet” Conference held in Wuhan, highlighting the country’s drive to incorporate satellite-based solutions in transportation, energy, agriculture, and emergency operations. This move comes as China seeks to strengthen its industrial backbone with reliable, wide-area network coverage, especially for remote monitoring and management. Officials have indicated that the trial will provide valuable insights on the operational and security demands of deploying satellite IoT solutions at scale.
China’s interest in satellite IoT has developed steadily over recent years, paralleling international efforts to integrate non-terrestrial networks (NTN) with traditional telecom infrastructures. Similar projects elsewhere have advanced, notably through 5G satellite integration pilots and launches of narrowband IoT (NB-IoT) technologies over satellites in the United States and Europe. Compared to these, China’s current initiative stands out for its broad industry scope and ambitious regulatory framework in supporting large-scale commercial trials, reflecting a more assertive approach to adoption and deployment within its domestic market.
How Will the Trial Impact Key Sectors?
The commercial trial allows licensed enterprises to roll out and test satellite IoT services across a variety of industries, including logistics, environmental monitoring, water management, and maritime operations. Unlike terrestrial-only networks, satellite-based IoT solutions can address connectivity challenges in sparsely populated or hard-to-reach areas. According to program organizers, real-world testing during the trial period is expected to inform future deployment strategies and uncover practical obstacles.
“Deploying satellite IoT expands our network coverage, ensuring every sector can benefit from digital solutions,”
one official explained.
What Regulatory Steps Must Participants Observe?
Approved companies must comply with rules laid out by the Ministry of Industry and Information Technology (MIIT), covering areas such as device registration, terminal certification, spectrum management, and routine performance reporting. These regulations are designed to ensure the security and integrity of services delivered during the trial. Additional oversight will monitor participants to validate adherence to technical benchmarks and data protection standards throughout the two-year period.
What Role Do LEO Satellites Play in the Pilot?
Low Earth Orbit (LEO) satellites form the backbone of China’s satellite IoT plans, providing low-power, broad-area connection for devices that do not require constant high-bandwidth links. National telecom companies are increasing investment in LEO infrastructure to support emergency response, rural development, and industrial automation.
“We see satellite IoT as a key technology for rural and marine connectivity,”
stated a representative involved with one of the satellite projects. Growth in China’s satellite communications market, valued at over RMB 80 billion in 2023, is forecast to accelerate as these pilot projects transition to full commercial operations.
Non-terrestrial networks, including direct-to-device satellite communications and broadband services, are expected to serve as critical layers within China’s future digital infrastructure. This pilot is structured to provide operational feedback for scaling up LEO constellations while implementing hybrid 5G and NTN systems. Its outcome will help policymakers and industry leaders assess how satellite IoT solutions can complement terrestrial coverage and support ubiquitous connectivity for both public and private sectors.
As China’s pilot gets underway, close monitoring of technological performance, regulatory adherence, and industrial outcomes will be essential. The experience gathered may influence global standards, given China’s rapidly expanding NTN ecosystem and presence in manufacturing and logistics. Companies looking to participate or collaborate will need to prepare for rigorous compliance and adapt solutions to fit local and industry-specific needs. Insights from this initiative will shape broader deployment strategies, especially as the global market for satellite IoT networks becomes more competitive and diversified.
