>Why do they have to be orbital

Because suborbital satellites tend to have lifespans on the order of minutes. Having to replace your entire satellite fleet on a bi-hourly basis is a very, very poor business case.

>And you charge people for use of your internet service just like every business ever.

That works if you have a monopoly, but not in a world in which competition exists.

If it costs you ten times as much to launch a comparable satellite constellation to your competitor, then you need to charge each person ten times as much, or subscribe ten times as many users which means 1/10th the bandwidth per user, or some combination thereof.

Either way, the consumer gets a worse deal, so why would they purchase your service as opposed to your cheaper and faster competitor's?