Echostar’s Hughes geosynchronous satellite communications division files for bankruptcy
Faced with the loss of customers from the low orbit internet constellations led by Starlink, Echostar’s Hughes geosynchronous satellite communications division has now filed for bankruptcy.
The company said Aug. 3 that Chapter 11 bankruptcy protection will enable Hughes Satellite Systems to restructure debt as it refocuses on enterprise, government and defense customers following heavy losses in its legacy consumer internet market. International subsidiaries were not included in the Chapter 11 proceedings, which come a month after parts of EchoStar’s business tied to satellite TV and its abandoned 5G network filed for bankruptcy protection. The company said it expects to continue providing services during the bankruptcy process.
Hughes broadband subscribers have plummeted roughly 21.7% over the past year to around 641,000, chief restructuring officer Robert del Genio said in a court filing, citing intense competition from low Earth orbit (LEO) broadband operators. “The company does not expect this trend to reverse,” he said.
The company hopes to survive based on its recent contracts from both commercial airlines and the Pentagon as well as offering its extensive ground infrastructure to other new low orbit constellations.
This bankruptcy is overall part of Echostar’s decline. It sold most of its licensed spectrum to SpaceX in November, and has since been in the process of liquidating all of its remaining spectrum.
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Sawyer Merritt quips:
Hughesnet CEO in 2020 on SpaceX’s @Starlink: “The economics are not going to be a big advantage for Starlink. In fact, it’s going to make our offerings much more attractive.”
Hughesnet in 2026: Files for bankruptcy
Whistling. Graveyard.
I could see this happening as soon as Space X was able to offer cell service from their low orbit sats.
The old sat services were pretty much surviving on government paychecks and emergency satphones for hikers.
As soon as they started selling off parts of their spectrum the writing was on the wall.