Then, the Google Earth crew would look at the Google Fiber team and say "if they can offer 700 mbps for $70, what can we do with satellites?" Maybe they'd launch a rocket carrying 50 mini-sats that together provided ten times better coverage than the 1960s style Landsats that the government is still launching.
Sometimes government research into new technology is good. For only a few billion dollars, DARPA created what would later become the internet. Speeds up to 300 bps in the government version. Then companies took it to 700000000 bps, after building the web atop the old gopher-carrying net.
Satellites aren't a top secret research project anymore. That's no reason for all the waste and inefficiency of government these days. The news channels and other users will buy satellite feeds from someone - if the need is there, that's a market, and a market will always attract suppliers.