I would say their already fighting a bandwidth and latency war they've already lost but this will be great for isolated regions! 50ms is high for a some fixed like connection out onto a server in the same country (maybe even continent) in my opinion. Also at 12Gbps for a satellite thats a bit limited, even with 700 of them.
A normal telephone exchange (Services roughly the area of a large town) in the UK would have a backhaul of 10/20Gbps, probably more with fibre demand increasing. combine that with core networks that have 200 - 400 Gbps rings and the satellite network is looking a little bandwidth choked.
http://arstechnica.co.uk/science/2015/06/onewebs-constellation-of-700-low-altitude-satellites-will-be-built-by-airbus/
