can't wait for satellite to some day be robust and cheap enough to utterly destroy the notion of municipal internet. probably not in my lifetime, but hey, my 4g is cheap enough for my current uses :)
1. Latency. 600-700 ms RTT is typical on satellite, and it's bounded by the speed of light. This makes a lot of real-time services, like voice chat and video games, essentially unusable.
2. Bandwidth. The satellites you're communicating with have a limited capacity, and provisioning more capacity is nontrivial. As a result, most satellite services have very low data caps, typically 10 - 100 GB/month.
3. Physical concerns. Satellite connectivity requires an antenna with a clear view of the equatorial sky (e.g. south for northern hemisphere). This is often unavailable in cities, apartments, or hilly areas -- if there's a tall building or a mountain between you and the satellite, you can't use their service.
This should fix all three of your problems, except maybe total bandwidth.
I think that's a slight mis-wording - you can't beat the great circle distance over the surface unless you go underground, but you can definitely beat a packet-switched, zig-zagging network running through the ground with a more or less direct point-to-point mesh running 100km above it.
https://www.fastcompany.com/90268592/elon-musks-spacex-just-...
Most streaming services can also degrade gracefully. Granted, we don’t have actual hardware to examine for these internet services, but many satellite uplinks already work fine in bad weather with at worst some loss of bandwidth.