The first in the 300-satellite array -- known as the Hongyan constellation -- is set to be launched by the end of this year, it said.
The official Xinhua news agency had in February quoted the China Aerospace Science and Technology Corporation (CASC) as saying that the series called Hongyan constellation was set to be launched this year.
Once completed, the satellite communication network will take the place of the ground-based network and allow a mobile phone to be connected everywhere on the planet, either in a remote desert or at sea, the CASC said.
China is already developing BeiDou Navigation Satellite System (BDS) to rival America's Global Positioning System, (GPS).
Besides rivalling GPS, China uses BDS for its military applications to avoid dependence on GPS.
The new constellation will be the first group of low-orbit communication satellites designed and launched by China, enabling the country to better guide disaster rescue efforts, the Global Times reported.
The coverage of a single low-orbit satellite is limited, requiring more satellites to cover wider areas, Pang Zhihao, retired rocket and aerospace expert with the China Academy of Space Technology (CASC) told the daily.
"The technology can be applied to multiple fields including civil and military use," Pang said.
However, a number of China's aerospace companies have decided not to invest in the development of satellite systems as they worry about high costs and remain uncertain of the commercial use of the technology.
"Mobile communications satellites are a trend of the future, but reducing costs remains an important issue to be solved," Pang said.
Zhao Junsuo, a research fellow at the Chinese Academy of Sciences' Institute of Software, told the newspaper that China's current space-based infrastructure remains insufficient.
Improvement of the infrastructure could lessen the cost of satellite constellations and needs government support, Zhao said.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)