On‐board baseband processing has been actively pursued by a number of organizations for potential implementation in future communications satellites. This paper examines some of the benefits of on‐board regeneration, baseband processing, and switching. It describes alternate switching concepts, i.e., circuit switching and fast packet switching, their advantages and shortcomings, and potential applications for future commercial satellite communications. In particular, fast packet switching is a relatively new concept for on‐board applications and shows a great promise for the integrated operation of digital satellite networks. Key design issues for this system are also discussed. The paper presents several switch configurations for each type of switching concept, and a sample network architecture and its processing payload configuration for potential future communications satellites.