Cisco has successfully tested a satellite-based router as part of its work for the US Department of Defense's Internet Routing in Space project. The IRIS project aims to bring the same routing capabilities to satellites as is already available on terrestrial networks - an implementation of TCP/IP in space, basically.
Cisco claims that the scheme will reduce delays in video and voice transmissions caused by the need for data to make additional hops between heaven and Earth.
Cisco also says that space-based routers will make it more practical for telecoms to offer high bandwidth, on-demand services by eliminating the need for customers using existing satellite networks to reserve bandwidth and pay for it whether its used or not.
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