Wang Jing, Chinese tycoon behind Nicaragua Canal, now wants to build satellite communication network
A Beijing businessman has unveiled an ambitious plan to establish a constellation of satellites to give China a low-cost communication service.
A Beijing businessman behind a controversial project to build Central America's second canal linking the Pacific and Atlantic oceans has unveiled his latest big idea - an ambitious plan to establish a constellation of satellites to provide low-cost mobile communication services to China.
Wang Jing told a press briefing in Beijing yesterday that his company, Xinwei Telecom Enterprise Group, launched a low-earth orbit satellite last month in Inner Mongolia in a joint venture with Tsinghua University.
It makes Xinwei the first private enterprise in the country to invest in the closely guarded space industry, Wang said.
The State Council said on Friday that it would open the mainland's market for telecommunications infrastructure to more private investors, including opening space facilities for civilian uses such as positioning and navigation services.
Wang, 42, attracted attention last year when he announced a plan to build a US$50 billion shipping canal across Nicaragua with a Hong Kong registered company. In response to questions about a possible working relationship with the government, he said he was an ordinary businessman and did not have any state connections.
INFOGRAPHIC: Between two oceans
The latest project is reminiscent of the Iridium satellite venture launched in 1998, which operates 66 satellites.
"We're planning to launch four satellites on one rocket over three years, to eventually set up a mobile communications constellation of at least 32 satellites," Wang said, adding that he hoped the mission would be completed "ahead of the 70th anniversary of the founding of the People's Republic of China" in 2019.
Tsinghua University Professor Lu Jianhua, who led the project's research programme, said that once the constellation was established it could offer mobile satellite communication services priced at similar levels to existing terrestrial telecommunication services, which do not cover much of the country.
"It will provide an appealing alternative to the expensive Inmarsat services for ordinary Chinese users, as 80 per cent of the country's land territory and 95 per cent of its maritime territory are yet to be covered by telecom networks," Lu said, referring to existing mobile services offered by British company Inmarsat that are often used in areas not covered by terrestrial telecommunication networks.
Both Wang and Lu refused to say how much had been spent on designing and launching the first satellite, or comment on the budget for the plan overall.
"I made the decision because it was useful for the country ... I did not really care about the company's valuation," Wang said.
