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It's certainly better than the alternative in some places, which is zero internet. Look at how widespread "dumb phone" use is throughout Africa. Some incredible and empowering things can happen when unprivileged folks are given what we might consider outdated technologies.

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There's probably no reason this can't act as another competitor to fixed broadband in the US market, bypassing one of the major issues holding back greater competition in that market. Especially if SpaceX can get the launches down to a cheap enough point. And it should certainly be capable of acting as a competitor to 4G LTE and the next generation.

How much data could these push in theory?

I recall some notes from one of interviews with Musk that mentioned a "a plan for poorer countries and a plan for those stuck with Comcast". Not sure if Musk said this personally though, I haven't watched the interview itself yet.

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