China's GalaxySpace To Launch More Satellites in 2026

By Bloomberg Technology

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Galaxy Space & China’s Expanding Space Industry

Key Concepts: Megaconstellations, Commercial Space Development, Satellite Technology (Communication, Remote Sensing, Direct-to-Cell), Cost Reduction in Satellite Manufacturing, International Spectrum Coordination, Satellite-Terrestrial Network Integration, Lunar Exploration.

I. Galaxy Space: Overview & Capabilities

Galaxy Space is a Chinese commercial satellite company established in 2018, focusing on the development and delivery of satellites, specifically in the areas of communication and remote sensing technologies. As of the interview, the company has launched over 40 satellites into space and is preparing for further launches, including a “small user space” initiative. The company aims to innovate and improve efficiency in its products to secure both short-term and long-term market control, serving both domestic and global clients. A core strategy is to develop innovative products tailored to specific client needs.

II. Domestic Policy & Ecosystem in China

The current policy environment in China is highly supportive of private commercial space companies like Galaxy Space. Both the central and provincial governments are actively creating a favorable regulatory structure to encourage private sector involvement in the space industry. The overarching Chinese policy explicitly encourages the development of commercial space businesses, fostering a positive macro environment for companies to focus on industry growth. This support is seen as crucial for the expansion of the space sector.

III. Launch Logistics & International Coordination

Galaxy Space manufactures its own satellites and sources launch services from various rocket providers, evaluating options based on cost and availability. However, a significant challenge facing the industry is international coordination regarding spectrum allocation for each spacecraft launched into space. Successful launches require coordination among different players, necessitating increased collaboration between the space sector, government entities, and global operators. The speaker emphasizes the need for cooperation with European leaders who have been pioneers in satellite deployment.

IV. Technological Edge & Cost Reduction Strategies

Galaxy Space differentiates itself through focused investment in key technologies, including satellite communication technologies, broadband communications, satellite direct-to-cell technologies, and advanced solar panel systems for satellite power. A key strength lies in its ability to manufacture satellites cost-effectively. The company has established in-house, flexible “smart factories” to reduce production costs without compromising performance, ensuring long-term commercial sustainability.

A specific example of cost reduction is highlighted with satellite antennas. Initially costing over seven kilograms, Galaxy Space’s innovations and design optimizations reduced the antenna weight to half the original, resulting in over 50% cost savings on launch services due to reduced weight charges. Further technical innovations simultaneously reduced costs and improved antenna performance and throughput. This allows Galaxy Space to offer more affordable satellite communication services.

V. Commercialization & Key Partnerships

Galaxy Space is actively pursuing commercialization, evidenced by a recent contract with a telecommunications company in Thailand. The company utilizes a “Constellation trial network” with existing satellites to validate technologies and applications, including satellite internet. Collaborations with local players (telecom and space companies) in countries like Thailand are crucial for validating technology and adapting satellite internet services to local needs and demands, creating a commercial closed-loop system. The focus is on identifying real-world use cases and understanding user pain points.

VI. Target Markets & Growth Strategy

Galaxy Space is open to global markets, but currently prioritizes Southeast Asia, the Middle East, Africa, and Latin America. These regions are characterized by economic growth and a connectivity gap, creating high demand for satellite connectivity. The company recognizes the importance of integrating satellite networks with terrestrial networks (5G and beyond) to create a ubiquitous connectivity infrastructure.

VII. Satellite-Terrestrial Network Integration

Integrating space-based communication networks with terrestrial networks is identified as a critical issue and a major potential for commercialization. This integration requires close collaboration between the space and telecom industries, particularly regarding frequency allocation and spectrum management. The goal is to ensure that space communication networks do not interfere with terrestrial networks, allowing for seamless connectivity worldwide. This integration is seen as essential for the future of communication infrastructure, encompassing 5G and future 6G technologies.

VIII. China’s Role in Lunar Exploration

China is making significant progress in lunar exploration, alongside the US and other nations. The speaker expresses excitement about the growing interest in lunar exploration, viewing it as a dream come true for many. China’s industry players are actively involved in deep lunar exploration, with ambitions to achieve milestones such as orbiting the moon.

Notable Quote:

“We have to find the real demand, the real needs, and we also have to understand the pain points of those users. So that's why we need to go to different countries to establish a collaboration tool to get to the rights, the demands of the industry.” – Galaxy Space Representative.

Technical Terms:

  • Megaconstellations: Large groupings of satellites working together to provide global coverage.
  • Remote Sensing: Gathering information about an object or area from a distance, often using satellites.
  • Direct-to-Cell: Technology enabling satellites to communicate directly with standard mobile phones.
  • Spectrum Allocation: The process of assigning frequencies for radio communication, crucial for avoiding interference.
  • Terrestrial Network: Ground-based communication infrastructure (e.g., cell towers, fiber optic cables).
  • Throughput: The rate at which data can be transmitted.

Conclusion:

Galaxy Space is positioned as a key player in China’s rapidly expanding commercial space sector, leveraging government support, technological innovation, and a focus on cost reduction. The company’s strategy centers on developing advanced satellite technologies, securing strategic partnerships, and integrating satellite networks with terrestrial infrastructure to deliver affordable and ubiquitous connectivity. Its focus on emerging markets and commitment to collaboration suggest a strong potential for growth and a significant contribution to the future of global communication.

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