China Mobile's 03 Satellite Set for Launch as LEO Direct-Connect Satellite Race Intensifies

China Mobile is preparing to launch its 03 test satellite, a next-generation low-earth orbit direct-connect satellite featuring on-board base station capabilities, as competition among China's three major telecom operators in the satellite-to-phone connectivity market intensifies, sources familiar with the matter have revealed. Unveiled at MWC Shanghai 2026, the China Mobile 03 satellite represents a significant technological advancement over its predecessor. The 02 satellite, already in orbit, has successfully completed uplink and downlink link testing using transparent transponder mode — essentially functioning as a signal relay station without on-board processing.

The 03 satellite, by contrast, will carry an on-board base station implementing "satellite regeneration" technology, where signals are demodulated, decoded, repackaged, and retransmitted directly from orbit, significantly improving link efficiency and system capacity. The 03 satellite will also conduct in-orbit validation of satellite IoT services, enabling convergence of broadband communications and narrowband IoT in a single platform. However, with only one regenerative test satellite planned for launch, inter-satellite link verification will not be conducted in this phase.

China Mobile's satellite strategy is part of a broader "space-air-ground-sea" integrated communications blueprint. At MWC Shanghai, the company showcased a multi-layer architecture spanning satellite internet above 300 km for space-based networking, aviation internet at 1,200 meters for commercial airline communications, low-altitude smart networks between 100 and 600 meters for drones, and terrestrial 5G plus maritime coverage. China's three major telecom operators have adopted distinct satellite strategies.

China Telecom, leveraging its civilian operation rights for the Tiantong-1 geostationary satellite, was first to launch satellite calling services with Huawei handsets. China Unicom obtained satellite mobile communications ope