China Galaxy Securities has released a research report stating that on February 10, 2026, the Ministry of Industry and Information Technology, along with four other departments, issued an implementation opinion on strengthening the information and communication industry's capacity to support the development of low-altitude infrastructure. The document specifies that by 2027, ground-based mobile communication coverage for national low-altitude air routes should reach no less than 90%. It also calls for the deployment of diversified integrated technologies, such as 5G-A integrated sensing and communication base stations and satellite communication, based on demand. The focus is on enhancing network coverage and navigation positioning accuracy below 300 meters, aiming to establish typical application scenarios in areas such as urban governance, logistics, and cultural tourism. The main views of China Galaxy Securities are as follows:
Mobile Network Construction and Satellite Enhancement Drive Continued Investment in Low-Altitude Economic Infrastructure The opinion emphasizes demand-driven and prioritized development, focusing on low-altitude flight activity zones with existing conditions and needs. It promotes the coordinated development of information infrastructure and low-altitude applications tailored to local conditions. The approach advocates for intensive reuse and multi-technology synergy, leveraging existing public mobile communication facilities while integrating ground-based mobile communication, satellite communication, and other navigation and surveillance technologies to support low-altitude applications. It also stresses pilot testing and gradual implementation, strengthening validation in key technologies, network deployment, and application adaptation to explore replicable solutions and best practices. Security and controllability are prioritized throughout the planning, construction, and operation phases of information infrastructure. By 2027, the goal is to achieve over 90% ground mobile communication coverage along national public air routes, further mature multi-technology sensing solutions, continuously improve low-altitude navigation services, develop no fewer than 10 information infrastructure standards, and establish a range of typical low-altitude application scenarios in urban governance, logistics, and cultural tourism.
Clear Low-Altitude Communication Needs May Boost Demand for 5G-A Integrated Sensing and Communication Base Stations Key tasks outlined in the opinion include advancing communication network coverage for low-altitude scenarios as needed. For areas along low-altitude routes below 300 meters and hotspots of low-altitude applications, existing mobile communication infrastructure like 5G should be fully utilized. Based on compliance with national radio management regulations, methods such as beam optimization, antenna adjustments, and new base station construction will be employed to enhance low-altitude mobile network coverage. Telecom operators are encouraged to strengthen coordination with relevant national departments to explore dedicated low-altitude sensing networks, improving coverage and service capabilities while ensuring interoperability with ground networks. Satellite communication and ground-based mobile communication will be integrated to provide coverage for airspace above 300 meters and remote areas. According to the opinion's requirements, demand for small cells, micro cells, and 5G-A integrated sensing and communication base stations is expected to rise steadily.
5G-A Integrated Sensing and Communication Plus Satellite Solutions Enhance Navigation and Positioning Accuracy in Low-Altitude Airspace Traditional ground-based 5G base stations primarily serve terrestrial users, leading to signal blind spots and interference issues in airspace below 300 meters. Therefore, the opinion explicitly calls for targeted construction or optimization through beam optimization, antenna adjustments, or new base stations to ensure continuous coverage along low-altitude routes. Building on previous practices in regions like Suqian, Zhoushan, and Xianyang, solutions such as new base stations, relay devices, and air-ground shaped antennas have been deployed to address signal gaps and frequent handovers in drone delivery routes. These cases demonstrate how 5G-A integrated sensing and communication technology strengthens low-altitude signals. Simultaneously, satellite communication will complement ground base stations to reduce latency and improve navigation precision and drone positioning accuracy.
Investment Recommendations: Focus on telecom operators China Mobile, China Unicom, and China Telecom, as well as satellite internet-related companies like Huace Navigation, Zhonghaida, FiberHome Technologies, and Tongyu Communication. Companies involved in low-altitude infrastructure, such as HG Tech and XinTong Mobile, are also worth attention.
Risk Warnings: Potential delays in satellite internet development and base station construction.
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