On August 4, satellite internet concept stocks shone brightly, with notable gains observed in Tianjian Technology, Aerospace Electronics, Zhenxin Technology, Aerospace Huanyu, Xingwang Yuda, and several others.

Satellite internet, despite its relatively low capacity, is poised for accelerated development in the coming period.

The competition for future mobile communication technology has escalated from terrestrial to space-based systems. According to the Satellite Association, global satellite industry revenue grew at an average annual rate of around 3% from 2015 to 2018, reaching $277.4 billion in 2018. CCID Consulting predicts that by 2030, China's satellite internet market will expand to a size in the hundreds of billions.

As satellite internet is still in its nascent stage, upstream industries such as satellite manufacturing, launch services, ground equipment, and satellite operations stand to benefit first.

In April 2021, the establishment of China Satellite Network Group ("Xingwang Group") marked the official entry of the "national team," signifying an accelerated phase for China's satellite internet industry.

Chengchang Technology, a subsidiary of Heertai, specializes in T/R microwave millimeter-wave RF chips and is among the few private enterprises in China capable of undertaking large-scale national launch missions.

Due to the high barriers to entry, domestic enterprises that master phased array T/R chips, in addition to Chengchang Technology, include the 13th and 55th Research Institutes of China Electronics Technology Group Corporation, with annual shipments of 1 to 1.5 billion chips.

With an investment-to-output ratio of 1:10, satellite internet has the potential to drive the downstream application market to reach trillions of yuan. Therefore, there is immense potential for satellite applications and operational services.

Building on the accelerated implementation of the Beidou industry, BDStar's business encompasses the upstream, midstream, and downstream sectors of the Beidou industry.

Furthermore, China Satellite, under the Aerospace Science and Technology Corporation and specializing in satellite manufacturing and applications, and China Satcom, which operates the satellite space segment, will both benefit from the grand strategy of satellite internet.

Terahertz communication represents the transition from electronics to photonics, effectively addressing the increasing scarcity of frequency band resources. It is considered the core communication technology for the 6G era.

From 5G to 6G, massive MIMO technology continues to evolve, enabling ultra-large-scale intelligent antennas to be applied in high-speed scenarios such as high-speed rail and airplanes, urban macro coverage, precise positioning, and other fields, achieving seamless connections under full coverage.

Among these advancements, intelligent reflecting surfaces (RIS) and electromagnetic wave angular momentum are two significant research directions. RIS can enhance antenna intelligence, enabling large-scale deployment with low cost and power consumption by reshaping the propagation environment. Meanwhile, electromagnetic wave angular momentum can boost spectral efficiency without consuming additional spectrum or time.

The IMT-2030 (6G) Promotion Group of the Ministry of Industry and Information Technology has collaborated with China Mobile, China Telecom, ZTE, Huawei, and others on relevant technological research and development. ZTE previously worked with China Unicom to complete the industry's first technical test of an intelligent reflecting surface panel in 5G mid-frequency.

However, the research and development of ultra-large-scale antenna technology are still in the theoretical validation and experimental stages, and its industrial implementation faces numerous uncertainties, far from contributing to the performance of related enterprises.

In contrast, satellite internet in the 6G industry serves as the prerequisite and cornerstone for industrial implementation and has already entered an accelerated phase of promotion. Compared to terahertz and ultra-dimensional antennas, it warrants greater attention.

With each new generation of mobile communication commercially launched, research on the subsequent generation has already commenced. As we stand at this juncture, the 6G era, leveraging a market scale exceeding 10 trillion yuan, is accelerating towards us.

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