I live about 10 minutes from a small city and still don't get 3G signal, hardly enough to hold a phone conversation. Is 5G really competing for rural users like me?
I get 200-400 Mbps on 5G, on a UK network with 40 Mhz of TDD 3.6 Ghz 5G spectrum. On 4G LTE I rarely see more than 50 Mbps or so (Typically 20+20 Mhz FDD LTE at 2.1 or 2.6 Ghz).
I don't really think that Starlink's hands are tied with respect to price increases, though. I doubt over-subscription is all that possible, unless they overestimated their own capacity when signing existing contracts.
if you look at the traffic usage charts from 50 houses on residential last mile gigabit connections the average customer really doesn't move that much data. you'll get the occasional outlier such as a person who is really enthusiastic about torrenting 75GB 2160p movies but when averaged out over a group of dozens or more customers it's generally a non issue.
the danger is in oversubscribing your network to the point at an unreasonable ratio that the ordinary end user starts to see bad packet loss, jitter, latency, slow speeds, etc.
5G is only good for high population density.
There also tends to be more competition in densely populated areas (but perhaps more people looking for backup internet)
5G is also an enormous upgrade from DSL, and better suited for dense urban areas. Here in the UK it's at least 4X faster than Starlink and 1/4 the cost. I haven't had any fixed-line internet connection at all in the past 2 years since cheap 5G became available.
Starlink is great for rural areas, which often have poor DSL and neither fibre nor good mobile coverage.
In this case 'developed' means 'having legacy infrastructure'.
This could easily and cheaply be done in any city in the developed world, and in most rural areas as well. That it isn't happening is one of the failures of the free market and government.