HughesNet Shifts Focus to Starlink Amid Competitive Pressure

HughesNet is strategizing to redirect its subscribers toward Starlink, amidst mounting competitive pressure and declining revenues. According to a recent report by Tesla North, this shift was revealed in HughesNet's 10-Q SEC filing following its parent company, EchoStar's, significant agreement to sell its wireless spectrum portfolio to SpaceX for approximately $17 billion.

The filing disclosed that this commercial arrangement includes a fee-based referral program allowing HughesNet to refer its existing customers to Starlink, indicating a significant pivot in HughesNet's business model.

EchoStar executives have signaled a move away from consumer satellite broadband, with former CEO Hamid Akhavan stating that the market for consumer connectivity via satellite has become highly competitive, particularly with SpaceX's offerings and upcoming rivals like Amazon's rebranded Project Kuiper, now known as Amazon Leo, which is set to launch commercially in early 2026.

HughesNet had previously attempted to revitalize its consumer business through new service plans and the launch of its Jupiter 3 satellite. However, subscriber numbers have continued to decline, dropping from 912,000 to 783,000 broadband users within a year.

Moreover, the company's financial health is concerning, as it reported insufficient cash reserves and projections to meet future obligations, which raises doubts about its viability as a going concern.

The 10-Q filing also highlighted that EchoStar might not provide additional liquidity after the spectrum sale, which is still pending regulatory approval. Meanwhile, Starlink continues to gain momentum, having increased its median peak-hour speeds by over 50% this year due to the rapid deployment of new satellites and upgraded hardware.

Starlink has also launched a new affordable internet plan in the U.S., offering unlimited downloads at speeds up to 100 Mbps for just $40 per month. With over eight million users globally and operations in more than 150 countries, referrals from HughesNet could significantly boost Starlink's subscriber base, further solidifying its position in the competitive satellite internet landscape.