Satellite Internet is the ability to transmit and receive data from a relatively small satellite dish on Earth and communicate with an orbiting geostationary satellite 22,300 miles above Earth's equator. The orbiting satellite transmits (and receives) its information to a location on Earth called the Network Operations Centeror NOC (pronounced "knock"). The NOC itself is connected to the Internet (or private network), so all communication made from a satellite dish to the orbiting satellite will flow through the NOC before it reached the Internet.This simple diagram above shows how data moves through a satellite network. 

Data communication via satellite is not much different than someone using a land based data provider, at least from the standpoint of the Internet user. The key to remember is that once the satellite system is configured by the installer, satellite service acts nearly identically as any other ISPs and may be configured as such. The slight difference of satellite service is described here.

What is a Geostationary Satellite? 
There is a location in space where you can place a satellite in orbit so that from the ground, the satellite appears stationary. What is happening is that the satellite is actually orbiting the Earth at the same speed the Earth is rotating. The satellite makes a complete orbit around the Earth in 24 hours, or exactly one day. Geostationary satellites are only located at 22,300 miles directly above the Earth's equator and nowhere else.