SpaceX is still in the early stages of developing advanced micro-satellites operating in large formations. Announcement in 2 to 3 months.
— Elon Musk (@elonmusk) November 11, 2014
The Wall Street Journal has more on the story:
Mr. Musk is working with Greg Wyler, a satellite-industry veteran and former Google Inc. executive, these people said. Mr. Wyler founded WorldVu Satellites Ltd., which controls a large block of radio spectrum.
In talks with industry executives, Messrs. Musk and Wyler have discussed launching around 700 satellites, each weighing less than 250 pounds, the people said. That is about half the size of the smallest communications satellites now in commercial use. The satellite constellation would be 10 times the size of the largest current fleet, managed by Iridium Communications Inc.
To be sure, the venture would face large financial, technical and regulatory hurdles, and industry officials estimate that it would cost $1 billion or more to develop the project. The people familiar with the matter cautioned the venture is in its formative stages, and Mr. Musk’s participation isn’t certain.
Messrs. Musk and Wyler are considering building a factory to make satellites, the people said. One of the people said initial talks have been held with state officials in Florida and Colorado about locating the factory.
In addition to Mr. Musk, WorldVu is seeking a satellite industry partner to lend expertise to the project, this person said.