Guangzhou Development District (GDD) is to become China's hub for in-flight internet services with the signing of a 1 billion yuan deal ($150 million) to establish the global headquarters of Blue Focus IFEC Technology.

The deal, signed between the communications giant, Guangzhou's Huangpu district and GDD on Oct 10, will create China's first in-flight internet innovation and entrepreneurship center and build a trillion-yuan in-flight internet industry cluster.

The two sides also agreed on the establishment of a special guide fund for the in-flight internet, which is expected to further expand the industry in Guangzhou.

About 50 airlines around the world provide in-flight internet services, with more than 4,000 aircraft equipped with WiFi systems. Passengers are able to connect to the WiFi using any device and enjoy movies, music and games stored on the airborne server, or access the internet via satellite and a ground-to-air broadband connection system.

China's in-flight internet started relatively late with Air China testing it in 2012. At present, there are only 140 airplanes in China that provide WiFi services, accounting for only six percent of China's civil aviation planes.

However, with growing civil aviation passenger traffic and more liberal management rules for electronic devices on airplanes, China's "internet + civil aviation industry" faces rapid development.

Guangzhou's in-flight internet development will benefit millions of passengers. Ji Xiang, chief strategy officer of Blue Focus IFEC Technology, said, "It is undoubtedly great news for the entire in-flight internet industry, and using your cell phone of a plane will become commonplace."