Abstract A number of factors involved in establishing a satellite system are considered, as related specifically to design of a communications satellite system. Both phased an randomly spaced systems in equatorial and inclined orbits, with periods of 6 to 24 hours, are investigated with respect to user requirements. Total cost of establishing a system depends on the booster used, the orbit parameters, the type of phasing, and the size and reliability of the satellite. It is shown that, for example, a booster carrying multiple satellites is preferable for systems with large numbers of satellites. Optimum orbit inclination (with respect to number of satellites required for coverage) depends on the latitudes of the using stations and on their latitudes and longitudes. Another major cost element in a satellite capability is the cost of maintaining it at full operational capability for the specified lifetime. This cost depends on satellite reliability, number of orbit planes, booster used for replacement launches, and replacement philosophy. This last is a function of the type of phasing used, the quality of coverage needed, and the time required to replace a satellite.