Billionaire entrepreneur Elon Musk shook up the automotive and aerospace industries with electric cars and cheap rockets. Now, he is focused on satellites, looking at ways to make smaller, less-expensive models that can deliver Internet access across the globe, according to people familiar with the matter.

Mr. Musk is working with Greg Wyler, a satellite-industry veteran and former Google Inc. executive, these people said. Mr. Wyler founded WorldVu Satellites Ltd., which controls a large block of radio spectrum.

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