There are several observational campaigns underway to detect kilometer-sized foreground Kuiper belt objects (KBOs) through their occultation of background stars. The interpretation of an occultation light curve, unfortunately, is affected by a geometric degeneracy such that one is unable to determine the KBO size independently of its distance. This degeneracy can be broken through a precise measurement of the relative velocity obtained from simultaneous observations of individual events. While an array of telescopes spread over an area of few square kilometers can be employed, it is unlikely that the relative velocity can be measured to the required accuracy to help break this geometric degeneracy. The presence of diffraction fringes in KBO occultation light curves, when projected sizes of occulted stars are smaller than the Fresnel scale, improves determination of size and distance significantly. In this regard, we discuss the potential role of a dedicated satellite mission for KBO occultation observations. If dwarf stars at the V-band magnitudes of 14 and fainter can be monitored at time intervals of 0.1 s with normalized flux errors at the level of 1%, the occultation observations will allow individual KBO sizes and distances to be determined at the level of a few percent or better.
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