Some satellites, such as those used by Iridium, can communicate directly with each other, but not using the universal standard of IP. In fact, current satellite technology is largely made up of expensive, proprietary equipment, Chartrand said.

Two recent developments have readied the satellite industry for IP routers, according to Pelton. One is an explosion in the capacity of satellites, from a typical capability of about 2Gb per second (Gbps) to as much as 150Gbps. This became possible because of technology that let satellites tap into a set of frequencies called the Ka band, as well as a new antenna technology called "spot beams." Rather than using one antenna to reach a whole continent, some satellites now have many antennas, each focused on a certain area. All these "spot beams" can use the same frequency at the same time, which multiplies how much data can be transmitted on that frequency, Pelton said.

That capacity is needed as users demand higher performance for new forms of content, especially video, Pelton said. And satellite broadband providers are already converting their land-based backhaul networks to IP, so they want to extend it across their infrastructure, he added.

Cisco already has one IP router in space. About five years ago, the company modified one of its Mobile Access Routers and sent it into orbit on a scientific satellite. Cisco has used that router for experiments, but it has little capacity and not enough power available to operate full time, Pelton said.

The real test begins with the launch of a purpose-built device that is already in the IS-14, a major communications satellite from satellite operator Intelsat, awaiting a launch scheduled for the end of this year. IS-14 originally was set to go up in the first quarter of this year, but the date was pushed back by overall launch delays at the Kennedy Space Center in Florida, Cisco said. Once IS-14 is in orbit, the U.S. government will experiment with the router for three months, after which carriers and private enterprises will test it for about a year, Pelton said.