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This paper presents an advanced satellite communication system named DYANET II. This system uses satellite channels as subscriber lines for ISDN customers as well as trunk circuits for overflow traffic. The system can offer the same ISDN services to satellite customers as those available to terrestrial subscribers in terms of numbering, signaling, and charging systems as well as user-network interfaces. It can also set up satellite channels on a demand assignment basis to achieve efficient satellite channel utilization, and to connect customers by single-hop satellite connections. A compact, lightweight Earth station has been developed for remote customers and temporary demands such as exhibitions.