DARPA Proposes Ripping Up Dead Satellites To Make New Ones
Found on Slashdot on Saturday, 22 October 2011
DARPA reports that more than $300 billion worth of satellites are in the geosynchronous orbit, many retired due to failure of one component even if 90% of the satellite works just as well as the day it was launched. DARPA's Phoenix program seeks to develop technologies to cooperatively harvest and re-use valuable components such as antennas or solar arrays from retired, nonworking satellites in GEO and demonstrate the ability to create new space systems at greatly reduced cost.
I'm not really sure if it's easier and cheaper to build new satellites from the junk that's already up there. At least not without a decent large space station.