Satellite has great potential to supplement, but not replace cellular. For satellite internet access, you need to be outdoors with a line of sight to the nearest satellite. So it won't work inside your house, your office, any retail store, or even when outdoors in densely packed urban areas.
At best, we will have a hybrid ground/space solution, as we have now for geolocation, with wifi/cellular triangulation providing quick approximate location data that works indoors, and satellites providing a highly precise location fix when you step outside.
this satellite device was designed to work indoors http://www.groundcontrol.com/SatFi.htm