MWC26 Shanghai in Review—Key Deals, Funding Signals, and International Expansion Strategies for China’s Space Industry

1) Shanghai Spacecom Satellite Technology (SSST)/Spacesail:

• Direct-to-Cellular (D2C) Successful Voice Call: Spacesail Technologies successfully tested D2C voice calls using standard unmodified smartphones on June 19, 2026. During MWC26 Shanghai, the company showcased its D2C test satellite model at 1:6 scale. While it remains in the testing and Research and Development (R&D) phase, Spacesail’s intent to enter the Direct-to-Device (D2D) market is now clear.
• Sleek and Compact Terminal Designs: Spacesail also unveiled its standard and aviation broadband terminals, marking its first public appearance. The standard terminal measures just 30 Millimeters (mm) in thickness and can deliver download speeds of up to 450 Megabits per Second (Mbps) and upload speeds of up to 150 Mbps. Compare this with Starlink Standard 4X Kit terminal, which is 39.7 mm wide. Starlink users typically experience download speeds of up to 310 Mbps and upload speeds of up to 44 Mbps, so similar performance can be expected from Spacesail’s terminals.   
• New Funding and Investment Round: In June 2026, Spacesail launched a new funding round to support its ambitious expansion plans to reach 15,000 satellites. The investment will be allocated for satellite constellation deployment, technology R&D, market expansion, and daily operational expenses. The fundraising round is expected to begin at US$736 million (5 billion RMB) and potentially reach US$2.2 billion (15 billion RMB), with the company planning to bring in up to three new investors and a shareholder value of no more than 20%.

2) Geespace

• Constellation Expansion: Geespace has 64 narrowband satellites in Low Earth Orbit (LEO) and is planning to launch 8 more satellites by the end of 2026, reaching a constellation size of 72 satellites.
• Established Partnerships: During MWC26 Shanghai, multiple agreements were signed with companies from various sectors that include intelligent connected vehicles, marine fisheries, construction machinery, energy, low-altitude economy, and smart agriculture. Businesses include Chuangyuan Information Technology, Jinwei Integrated Circuits, Heilongjiang Provincial Academy of Agricultural Machinery, Tuniao Low Altitude Area, Huace Navigation, Huada Beidou, and China Petroleum Pipeline Construction Engineering. The total number of partnerships has increased to over 200 ecosystem partners and on-site orders exceeded US$14.7 million (100 million RMB).

3) China Mobile

• New China Mobile-03 Satellite: The next-generation China Mobile 03 experimental LEO satellite is expected to be launched this year for the company’s D2C satellite service that is currently in the experimental verification and testing phase. Commercial services are expected to begin in China after further testing within the next 18 months. Compared to China Mobile-02 that uses a transparent relay mode with no signal processing performed on the satellite, which essentially acts as a repeater, China Mobile-03 will carry an onboard base station and adopt an onboard regeneration operational mode.

Satellite launches are picking up pace (Spacesail surpassed 200 satellites in orbit on June 5) with successful D2C testing, increased investment in constellation expansion, and a growing list of industry partnerships. Chinese satellite operators are now shifting toward network-scale and NTN ecosystem integration. Constellation size is a key factor for global coverage and capacity, so the real competitive advantage will come from ecosystem maturity—seamless integration with terrestrial networks and infrastructure, leveraging Artificial Intelligence (AI) to optimize performance, and working across global devices and partner ecosystems.  

• China’s Domestic Market Becomes Its Competitive Advantage (for Now): China does not need to replicate the U.S. model. Instead, focus on strategic factors in which it is already strong. China’s robust domestic ecosystem has one of the world’s largest terrestrial mobile infrastructures, a mature handset ecosystem, strong semiconductor manufacturing and development capabilities, and growing AI expertise that it can leverage. This is reflected in Geespace’s recent partnerships, focusing largely on serving the domestic industries such as intelligent connected vehicles, marine fisheries, construction machinery, energy, low-altitude economy, and smart agriculture. These collaborations highlight how China’s vast domestic market can serve as a launchpad for developing and commercializing satellite-enabled services before expanding into international markets.
• More Funding and Investments Flowing into China’s Space Sector: Spacesail’s recent funding round of up to US$2.2 billion signals to the industry that it is entering a growth phase and will be aggressively ramping up developments for larger-scale operations. Access to significant capital will support the company in accelerating satellite production, expanding constellation deployment, and investing in next-generation technologies and commercial applications like D2D services. Additionally, investments of this scale are also likely to attract greater participation and attention across the broader value chain—from component suppliers, launch providers, device manufacturers, and application developers. Innovation cycles will be shortened and China’s domestic space ecosystem is likely to mature at a much faster pace.

Many conversations at MWC26 Shanghai echoed one key trend: suppliers, manufacturers, and operators wishing to expand their footprint internationally. While a majority of their customers are domestically concentrated, their expansion signals intent to capture a larger consumer base on the international stage. The next phase in their roadmap is large-scale global commercialization.

• Build Sustainable Pricing Models & Repeatable Business Models: Many space-related businesses in China are largely supported by government-backed projects, but international markets require commercially viable offerings. Price services competitively with clear value propositions that align with local and international market needs, and the region’s willingness to pay. Tailor service pricing to different markets (developed versus developing; enterprise versus consumers), as not all markets can afford premium satellite services and have various needs. China might also be tempted to undercut the market by competing on the lowest price and cost, but this strategy will not be sustainable. Focus on the total value provided to end customers, providing services with reliability, integration, customer support, and bundled services.
• Build International Partnerships Early: Establishing international collaborations at an early stage can build market familiarity, understand regulatory differences, and create reference use cases outside China. The needs in China can be very different from the needs in Brazil, Malaysia, or Indonesia. This approach helps operators adapt their services to local market conditions, co-develop applications and solutions with regional partners, and prepare them for future larger-scale markets.
• Design Products for Global Markets, Not Just Domestic Requirements: Handset and wearables vendors and manufacturers will need to consider international requirements in their product design. Many of the current smartphone models sold in China can connect directly either to the Tiantong-1 or BeiDou satellites, while the models that are sold outside China do not have this service capability. Closer coordination across the ecosystem can help ensure satellite-enabled devices (both sold domestically and internationally) work seamlessly across different regions and accelerate international adoption.
• Prioritize Enterprise Markets Where NTN Solves Clear Business Problems: To compete internationally, Chinese satellite operators can target sectors with persistent connectivity gaps and operational dependence such as maritime, mining, logistics, agriculture, emergency communications, and underserved rural areas. Operators can develop vertical-specific offerings and use case solutions. Enterprise sectors might be easier to break into considering there is a clear Return on Investment (ROI), as compared to unclear consumer willingness to pay in the consumer mass-market globally. In addition, the NTN and D2D services for consumers are typically accessed via local Mobile Network Operators (MNOs), with a built-in consumer base and subscribers, adding another layer of complexity for direct consumer adoption.
• Invest in Global Market Intelligence: Another recurring theme observed at MWC26 Shanghai, based on discussions with vendors, operators, and manufacturers, is the need to gain a deeper understanding of regional market dynamics, competitive positioning, customer requirements across different geographies, regulatory environments, and the realistic Total Addressable Market (TAM) in each region. Go-to-market strategies differ for each country, especially in the satellite and space sector where spectrum and telecoms industry regulations differ widely. Having access to global market intelligence supported by data-driven research and local insights through thorough interviews will be critical in shaping more effective international expansion strategies in order to ensure that solutions are aligned with the specific needs and constraints in each market.