The system of hundreds of interlinked satellites would orbit roughly 750 miles above Earth. Musk delivered the news at a SpaceX event in Seattle.
Tying neatly into Musk's other ventures, the Seattle-based team of 60 (which could grow to 1,000 within four years) would also work onSpaceX's Falcon rockets and Dragon capsules, plus other vehicles for transporting both people and supplies. Musk expects the venture to cost a cool US$10 billion.
Musk is describing it at a "global internet service provider" which would bring internet access to remote and poor regions that currently lack the required infrastructure.
However, it isn't the only satellite internet venture planned. Last week Greg Wyler, the founder of competing venture OneWeb, announced he has received backing from Qualcomm and Virgin for the estimated US$2 billion project which he expects to be operational by 2018.