alt Hacker NewsOthers would use theblower orbits - but it is just not viable for them, as their rockets suck (eq. are not reusable) and thus they need to put their few expensive satellites with meager propulsion capabilities higher to last longer. Not to mention spot beams being wide enough with so few satellites.
>others would use theblower orbits
Orbital slots are managed by ITU United Nations International Telecommunication Union who manages availability / congestion. SpaceX reserved substantial % of sub 500 km slots. Hence PRC announching their megacontestallations to reserve 500km+ slots, specifically because there isn't enough room in sub 500km for another mega constellation so they're grabbing next best ones.
PRC megaconstellation is targetting 500km+, they're not going to put up 10,000s of mega constellation without economic reusable, hence many options under development. They're choosing orbits based on assumed reusables not current launch costs / vehicles, which btw LM5 is $3000/kg, or ballpark enough to F9/kg for disposable megaconstellation launches despite cost. But bottleneck is resusable vehicles can sustain the required tempo for megaconstellation that disposable can't.