China has taken another step in opening up its satellite communications to private companies. The Ministry of Industry and Information Technology (MIIT) has authorized Zhejiang Geespace Technology, a space technology company affiliated with the Geely group, to conduct a two-year commercial pilot of satellite-based Internet of Things (IoT) services. The company will be able to legally operate these services using the first phase of the Geely Future Mobility constellation.
The Key Points of Geespace’s Satellite IoT in 20 Seconds
- The Chinese regulator has granted Geespace a two-year experimental commercial authorization.
- This is the second private company to receive such permission in China, after Guodian Gaoke in May.
- Geespace currently has 64 satellites in orbit within its initial constellation.
- The services will target sectors such as transportation, fishing, energy, water, and other areas lacking sufficient land coverage.
- Beijing aims to gradually expand private participation in satellite communications.
Determining who was first is significant. Some international reports have described Geespace as China’s first private company authorized for this kind of testing. However, official sources and Chinese financial media indicate that it is the second private company, since Beijing Guodian Gaoke Technology received an equivalent authorization on May 6 to operate its Tianqi constellation.
This move is part of broader regulatory openness. China launched commercial satellite IoT testing in November 2025, after years during which major satellite telecom licenses had been primarily held by large state-owned enterprises. Private companies had a much larger presence in satellite manufacturing, launches, and applications, but less so in direct network operations.
Geespace Will Be Able to Turn Its Constellation into a Commercial Service
This authorization notably changes Geespace’s status as an operator.
Over the next two years, it can pilot commercial IoT services using the Geely Future Mobility Constellation, a low Earth orbit (LEO) satellite network developed by the company.
The MIIT specifies three key features for these services: broad coverage, low power consumption, and high reliability. Initial applications will relate to smart transportation, maritime fishing, energy, and water resource management, through automated data collection and remote device interaction.
Satellite IoT should not be confused with broadband connections like Starlink providing home or business internet. Its primary goal is to transmit small amounts of data between machines, sensors, and platforms located where conventional cellular networks are weak or hard to deploy.
For example, a ship can send its position and navigation data. A sensor on energy infrastructure can communicate periodic measurements, while machinery in remote areas can report its status without relying on nearby 4G or 5G antennas.
Therefore, the Chinese regulator considers these networks a complement to broadband satellite internet, not necessarily a replacement.
Geespace also benefits from an existing infrastructure.
Currently, the company has 64 satellites in orbit, according to the Zhejiang Communications Administration. The initial plan includes a 72-satellite architecture, with eight backups.
The project has advanced rapidly. In September 2024, Geely announced it had reached 30 satellites, capable of covering roughly 90% of the planet 24/7. At that point, the group explained that the first phase would finish with 72 satellites, providing low- and medium-speed satellite communications.
From Geely Cars to Ships, Drones, and Machinery
Geespace’s automotive background helps explain part of its strategy.
The company is part of Geely’s tech ecosystem, one of China’s major automotive groups, and its constellation was conceived from the start around connected mobility.
However, commercial applications are expanding beyond automobiles.
In Taizhou, Zhejiang, satellite terminals are being installed on 60 fishing vessels, while the technology is also being used for low-altitude drone operations. Geespace has supplied more than 20,000 terminals installed in vehicles, according to authorities in Zhejiang.
The company is also working to take its platform outside China.
Official sources in Zhejiang state that they have collaborations with telecom operators in more than 20 countries. Geely has previously announced projects and services in markets like Oman and Malaysia.
Geespace also claims to have received orders related to its LEO communication ecosystem valued at over 100 million yuan, approximately 12 million euros at current exchange rates.
These figures do not yet make satellite IoT comparable to major mobile networks, but they show that China is exploring income-generating applications while continuing to build a large space infrastructure.
China Opens a Market Traditionally Reserved for State Companies
This decision has regulatory dimensions beyond Geespace.
For years, basic satellite telecom licenses in China were mainly held by large state-owned enterprises. Private firms could manufacture satellites, develop components, participate in launches, or sell applications, but faced significant hurdles to become direct communications operators.
That model is beginning to change.
In November 2025, MIIT launched a formal program for commercial satellite IoT testing. That month, China’s State Council published measures aimed at providing a more level playing field for private investment in commercial space activities, including related issues like frequency management and launch approvals.
The first license was granted in May 2026.
Beijing Guodian Gaoke Technology then received permission to operate commercial services via Tianqi, its own LEO IoT constellation, for two years. The network currently has 41 satellites and offers global coverage for applications such as fishing, energy, logistics, agriculture, emergency response, and asset tracking.
The license now granted to Geespace confirms that Guodian Gaoke’s authorization was not an isolated case.
MIIT characterizes this new approval as a step to further open satellite IoT to private companies. The agency also indicates it will review market access conditions while increasing oversight and security requirements.
This does not mean China has fully liberalized satellite telecommunications. These are experimental two-year authorizations within a regulated framework.
IoT May Be Among the First Commercial Uses of Satellite 6G
Underlying these tests is also the development of future 6G networks.
Geespace has completed ground tests based on 3GPP IoT NTN, a set of specifications that enable integration of non-terrestrial networks with standardized mobile technologies. The company is also working on satellite communication technologies related to 6G.
The broader idea is that future mobile networks will progressively combine terrestrial and space-based infrastructure.
Satellites do not need to replace urban mobile antennas, where terrestrial networks still offer much higher capacity. Their utility is increased in oceans, deserts, mountains, agricultural operations, energy infrastructures, and logistical corridors—places where deploying base stations is costly or simply infeasible.
China is testing this model ahead of commercial 6G deployment.
IoT also provides a relatively accessible entry point, as many applications do not require high data throughput like video streaming. An industrial sensor, a container, a vehicle, or a ship can operate with small, periodically sent messages.
The next test will be economic: assessing whether enough companies are willing to pay for the connectivity to sustain the constellations and terminals.
Licenses granted to Guodian Gaoke and Geespace will provide Chinese regulators with this essential information. Over the next two years, they can evaluate demand, security, technical operational performance, and business models before deciding how much private access to these tightly controlled segments of telecom will expand.
Frequently Asked Questions
What license has Geespace received in China?
The Ministry of Industry and Information Technology has authorized Geespace to conduct a two-year commercial trial of satellite IoT services using the first phase of its Geely Future Mobility constellation.
Is Geespace the first private Chinese company with this authorization?
No. Although some international media reports have portrayed it as such, Beijing Guodian Gaoke Technology received the first authorization in May 2026. Authorities in Zhejiang explicitly identify Geespace as the second private company to receive approval.
How many satellites does Geespace have?
The company currently operates 64 satellites in orbit. Its initial constellation plan includes 72 satellites, with eight additional backups.
What is satellite IoT used for?
It enables connecting sensors, vehicles, ships, machinery, and other devices in locations where terrestrial networks have limited or no coverage. Applications include transportation, fishing, logistics, energy, agriculture, and infrastructure management.
