Low-earth orbit systems need complex software to run constellations of satellites and sophisticated antennas on the ground to aim at spacecraft zooming from horizon to horizon. Costs quickly overwhelm savings from building smaller gear.
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Satellites in low-earth trajectories operate 200 to 1,200 miles above Earth and orbit it roughly every 90 minutes. Traditional communications satellites operate much higher, at an altitude of about 22,000 miles.
The LEO satellites will need to be massed produced cheaply and replaced every 4-5 years.