It is not happening because it's very difficult to do that with the spectrum allocated for mobile services. A network of towers can provide higher capacity densities than what SpaceX's 30k satellite systems will be able to.
In big cities, they will fall very sort of the capacity required. The current 4,409 satellite proposal has beams of ~700 Mbps, and each of those covers a surface larger than the whole NYC metropolitan area. The capacity scales linearly with the number of satellites in line-of-sight (LoS). Right now, with the 4,409 satellite system you can have ~40 satellites in LoS, so they can provide ~28 Gbps of throughput to the whole city. Even with 30k satellites, they will only be able to provide ~196 Gbps. That is not enough to offer any uncapped data plan.