A single satellite can easily have much more capacity than a 10 Mb Ethernet cable. Today's point-point IP radios can easily do 100 times that but a satellite's capacity is spread over a very large area. It doesn't solve the problem if you use beam forming. To cover the whole earth with N satellites, each satellite's available RF power must on average illuminate earth_area/N. That sets the best case power density with perfect patterns. In actuality it will be worse than this. On the ground, each user can not have an arbitrarily large/directional antenna. The mobile phone user wants the radio and antenna to fit in his/her pocket and run from batteries for a day.
Thus both signal power, S, and noise spectral density, N, are set. Per Shannon, this establishes a maximum average data rate per user. This is not a technology problem in that Shannon tells you what the limit is if you do it perfectly.
The only way to improve this link budget which is dictating the maximum average data rate is to add more antenna, more aperture, at the user's end and must always be low enough directivity, well formed/pointed/steered for satellite handoff. Directive antennas are inherently larger. And though they can be steered, nothing else substitutes for aperture - how big a 'bucket' to 'catch' RF they represent - which is necessary to increase S. With set ERP at the satellite the required aperture is independent of wavelength.
A LEO network *is* possible but the average per-user data rate is set by physics. I maintain that in today's market, which has an expectation of ten's of Mbps (or something similar) that the attendant per-user cost will not support the expectation. The Iridium network with (actually less than) 77 satellites was severely over subscribed. Each user could pay a lot to get a few kbps for a few minutes each day but all users could not simultaneously get many Mbps or even two way audio all the time. A few users in extreme situations were willing to pay the fee but the average user over the whole world would not be willing today.
It's physics and economics. But this doesn't keep people from investing, witness Iridium.