That's true, but they aren't doing this to provide internet to villages. As you pointed out, there's not much demand there and that's why no one bothers to provide internet access (I guess the good thing with Starlink and Amazon's version of it is that once it works, it should work in those places too).

Anyway the real reason they are doing it is that is extremely hard to enter the ISP space. It's not even the cost of fiber to run to every home, it is the cost of laying it and all the hoops the existing monopoly will use it.

Google has tried and failed. What often happened is that when they enter market with its 1Gbps offering, suddenly the 30Mbps ISP had 1Gbps and even at a cheaper price. They could sell it at a loss, because they were making a killing in other regions. They also created all kind of obstacles when Google tried to run a wire.

It is ridiculous and we really need a law to force competition.