nanosatellites
Researchers at the University of Toronto have developed a 3.5 kg "nanosatellite". Hordes of these small, low-power satellites could eventually replace much larger, more expensive satellites.
I believe that the nanosatellite market is on the verge of greatly expanding. The small size and the requirement for lots of them to replace much larger satellites would mean big savings, as they could be built on a production line, amortizing the development costs over many units.
And I don't think that this is the smallest functional satellite possible. For the last several months, I've been working on a satellite design approximately one-tenth the mass of the U of T nanosatellites, along with a small launch vehicle. I believe that the total cost for an individual unit (including the satellite itself, the rocket, and fuel and range costs) can be brought down to less than five thousand dollars per satellite. This is petty cash for many corporations, and would mean that even small companies could have several of their own small satellites launched for the price of a single company car.
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