AbstractThe paper traces the development of the market for communications and direct broadcasting satellites in Europe, since the original specification of the European Communications Satellite (ECS) in 1977. It reviews the experiments undertaken on the Orbital Test Satellite (OTS) and the way in which demonstrations with this satellite have influenced the way in which ECS is being developed.It continues by considering the impact of television on the market, first cable television and its distribution requirements, then direct broadcasting by satellite, where the introduction of homes into the customer configuration will bring with it programme content as a salient feature in market development.Finally it speculates on the possibilities for the future, both in terms of the effect of new and higher frequencies on satellite communications systems, and the possible effects that interaction from small earth‐stations could have on satellite desig