The next generation of satellites is discussed and a Ka-band payload is proposed which will provide mesh connectivity at high data rates (e.g. 1 Mbit/s) directly between very small aperture terminals (VSATs) using a maximum antenna diameter of 1.5 m. It is demonstrated that there are no significant differences between Ku-band and Ka-band VSAT operations apart from propagation margins, which are analysed statistically over 650 European cities. It is shown that margins required for Ka-band operations are not excessive. A Ka-band satellite payload is proposed, based on frequency division multiple access, multibeam switching with dynamically controllable transponder bandwidths and gain. The payload adapts to traffic-loading requirements in its provision of multibeam connectivity and capacity. The signal format, modulation and coding technique used for transmission is unconstrained, except in terms of bandwidth, and this will allow advances in modulation and coding to take place during the lifetime of the satellite in orbit.