SpaceX plans to build a terrestrial mobile service using spectrum acquired from EchoStar, aiming to compete with major US carriers. President Gwynne Shotwell said the company will create a "true mobile service" using lower-cost base stations paired with Starlink dishes rather than traditional cell towers. SpaceX agreed to pay $19.6 billion for 65 MHz of wireless spectrum licenses from EchoStar in 2025. The company plans to launch next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for late that year. Analysts expressed scepticism about SpaceX's ability to compete without an MVNO agreement, noting its 65 MHz spectrum is small compared to what major carriers own. Shares of AT&T, T-Mobile, and Verizon fell 2 to 4 percent following the announcement.

EchoStar reported Q2 2026 revenue of $3.58 billion and net income of $8.46 billion, beating analyst expectations. However, its subsidiary Hughes Satellite Systems filed for Chapter 11 bankruptcy protection, struggling with $1.5 billion in maturing debt amid intensifying competition from low-Earth-orbit providers. The restructuring will refocus Hughes on enterprise, government and defence customers. EchoStar now faces questions about funding its LEO direct-to-device and 5G initiatives whilst managing liquidity pressures and debt obligations. Analysts project EchoStar revenue of $13.3 billion and earnings of $1.3 billion by 2029, assuming a 3.5% annual revenue decline. The company's investment narrative centres on integrated satellite and terrestrial connectivity, though Hughes' bankruptcy filing has raised concerns about the sustainability of this strategy amid competitive and capital pressures.

EchoStar lost 241,000 pay-TV subscribers in the second quarter, ending 30 June 2026 with 6.39 million total subscribers. The figure includes 4.68 million Dish TV and 1.71 million Sling TV subscribers. Overall second-quarter revenue fell to $3.58 billion from $3.72 billion year-on-year. Pay-TV revenue declined to $2.24 billion from $2.46 billion in the same period of 2025. Despite subscriber and revenue declines, EchoStar posted net income of $8.46 billion, compared to a net loss of $306 million in the year-ago quarter, due to a non-cash gain. Excluding this benefit, net income would have been around $49.5 million. Separately, EchoStar's Hughes Network System division filed for voluntary Chapter 11 bankruptcy to reorganise around $1.5 billion in debt. The company said the proceedings will not impact Dish, Sling TV, or the rest of EchoStar.