Google's project will reportedly start with 180 small satellites orbiting the earth at relatively low altitudes, and is being led by the founder of satellite services startup O3b Networks.
The effort comes on the heels of Google's purchase of solar-powered drone maker Titan Aerospace (also aims to provide Web access to remote areas), and the launch of Project Loon, an effort to prove 3G-or-faster Web access for the planet using hot-air balloons.
Larry Page has argued balloons are cheaper and easier to deploy than satellites, but satellites offer more capacity, and have seen their costs drop sharply in recent years. Analyst Tim Farrar thinks Google will replace Loon in favor of Titan's drones, and have Titan complement a satellite network.
Google has also been reported to be close to acquiring Skybox Imaging, a provider of high-res satellite imagery and related analytics services, for ~$1B.