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While the concept is a noble one several questions come to mind...

They're going to build a network around a single satellite with no backup or (it appears) budget to build / launch a new one?

How do they intend to move this satellite? I know they talked to the owners and they say it's possible but I'd be curious to know the cost of the project. I am not an orbital mechanics engineer but it from my limited knowledge satellites only have enough fuel for minor course adjustments over their lifetime. Even if you could use much of it to completely reposition that would foreshorten the useful life of the satellite? And as of a few months from now the only current orbital recapture system (the shuttle) is being mothballed.

Just my initial quick thoughts. Sometimes great things come from seemingly grandiose plans though.

It is possible to move a satellite in geosynchronous orbit, and done in practice.

They will move the satellite by firing the East/West stationkeeping thrusters. Geosynchronous satellites, like the terrestar 1, need to periodically adjust their orbit to stay in their assigned slot. Aside from electronics failures, the operational life of a satellite is determined by how much fuel they carry, and how often stationkeeping is needed.

These kinds of moves are done currently. For example, the GOES constellation operated by NOAA has a backup satellite on-orbit ready to be moved to replace a failed satellite. It costs extra fuel from the limited onboard tank. In the case of GOES they plan for this fuel use. For Terrestar, it would shorten the 15 year lifespan some.

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