HughesNet in Deep Financial Trouble as Subscribers Switch to Starlink

WASHINGTON, May 18, 2026 – HughesNet, a geostationary satellite company, says it's on the brink of going out of business in an increasingly competitive broadband market, citing changing consumer behavior and new technologies as the primary reasons why.

HughesNet’s subscribers have dropped by about 100,000 subscribers a year since Starlink’s launch in 2020, and revenue has dropped substantially in the past year. The SEC filing report on March 13, 2026, says, “We currently do not have the necessary cash on hand, projected future cash flows or committed financing to fund our obligations over the next twelve months.” The company is deeply concerned about how it will remain in business moving forward.

HughesNet is facing increased competition due to changes in consumer behavior and new technologies. Companies like SpaceX’s Starlink offer median download speeds of 127 Mbps and unlimited data, while HughesNet offers a median download speed of 48.55Mbps and capped data. Subscribers are switching to have access to higher quality internet service.

EchoStar is the parent company of HughesNet. In an investor meeting in 2025, Hamid Akhavan, EchoStar’s CEO, admitted, “We think that SpaceX is the undisputed leader in the marketplace in terms of connectivity for today using Starlink.” Akhavan hoped that HughesNet could pivot and appeal to enterprise users. However, that strategy does not seem to be working with the satellite provider company.

HughesNet explained that it does not have the money to invest in any strategic operations, so it is unlikely that it will be able to adapt in time to save the company.