[dacohenii]

Existing satellite ISPs have their satellites stationed in geosynchronous orbit, which is like 35,000 km above sea level. This allows them to send up fewer satellites, since they have a line of sight to more of the Earth's surface. However, that distance that results in those high propagation delays.

SpaceX (et al) have a different strategy. They are instead sending satellites to Low Earth Orbit, so they'll be about 500 km above sea level. As a result, the propagation delay will not be nearly as bad. Perhaps under 50 ms, compared to the 600 ms I've seen on geosynchronous satellite internet.

At that low altitude, you need a lot more satellites (because each satellite can only "see" a small-ish area of the earth), so they need to send a swarm of those satellites. This is now possible because satellites are much smaller and cheaper than they used to be.

Will fiber blow it out of the water? Yes. Will The phone company run a fiber line out to my house for less than thousands of dollars? No. Would they do it if there's some competition from above? Maybe so.