Hughesnet Files for Chapter 11 Bankruptcy as Starlink Competition Cuts Subscribers
The bankruptcy filing marks a significant shift for Hughesnet, which plans to pivot from consumer-focused services to enterprise and government business as it restructures under Chapter 11.
Reporting from 1 source: GIGAZINE.
Satellite internet provider Hughes Network Systems, known as Hughesnet, filed for Chapter 11 bankruptcy on August 2, 2026, after losing subscribers to SpaceX's Starlink. Subscriber numbers fell from 1.56 million in December 2020 to 681,000 by March 2026, with a further drop of 59,000 in the second quarter. The company plans to continue operations while restructuring, including laying off 400 of its 1,275 employees.
Hughesnet's parent company EchoStar had already acknowledged the competitive pressure, with CEO Hamid Akhavan telling investors in September 2025 that SpaceX is the undisputed leader in internet connectivity via Starlink. The company's quarterly report for August 2026 cited intensifying competition from satellite-based rivals and other technologies.
Under the reorganization, Chief Operating Officer Paul Gaske resigned from all EchoStar positions and will stay on as a senior adviser. Robert Del Genio of FTI Consulting has been appointed chief restructuring officer. Court documents outline a multi-year plan to shift revenue from consumer services to enterprise and government platforms, which are already growing as a share of revenue.
Synthesized by Yomimono from the 1 cited source below, including Japanese-language reporting where cited, then editorially reviewed before publishing.