EchoStar Corporation

SpaceX President Gwynne Shotwell announced on an earnings call that Starlink Mobile will begin service at the end of 2027, aiming to acquire customers from AT&T, Verizon, and T-Mobile. The plan sent shares of all three carriers lower on Wednesday before they rebounded Thursday, with T-Mobile gaining 3.75%, AT&T 2.82%, and Verizon 1.12%. T-Mobile CEO Srini Gopalan told the Financial Times the threat is exaggerated, arguing satellites will remain complementary to cellular networks. Starlink's current direct-to-phone service uses about 5 MHz of borrowed spectrum, but following FCC approval of two SpaceX deals totaling $19.6 billion for 65 MHz of EchoStar spectrum with terrestrial rights, and a planned tenfold increase in next-generation mobile satellites, Shotwell said the upgraded service could be roughly 100 times more capable. Analysts remain skeptical, with Craig Moffett of MoffettNathanson telling Reuters it is extraordinarily challenging to imagine a competitive direct-to-consumer service within five years. Shotwell acknowledged the need for a terrestrial component, describing a plan to attach small cellular base stations to Starlink dish mounts rather than building large towers.

SpaceX's latest earnings call triggered sharp moves in telecom and energy stocks after executives outlined plans to build a terrestrial wireless network and massive power infrastructure. COO Gwynne Shotwell said Starlink would target customers of AT&T, Verizon, and T-Mobile, which together generate roughly $600 billion a year, causing shares of those carriers to drop. Deutsche Telekom CEO Timotheus Hottges acknowledged the market reaction, calling it overblown but saying the company takes SpaceX's ambitions seriously. Separately, Elon Musk's comments about building 20 gigawatts of power lifted natural gas equipment suppliers GE Vernova and Baker Hughes, as well as power providers Constellation Energy, NextEra Energy, Vistra, and EQT Corporation. The call also boosted Nvidia after Musk said SpaceX would build exclusively on its Vera Rubin architecture, and highlighted Echostar's 261.8 million share stake in SpaceX as a direct beneficiary.

AT&T closed a $23 billion acquisition of wireless spectrum licenses from EchoStar on July 28, adding roughly 50 MHz of low-band and mid-band spectrum covering more than 400 markets. The deal includes about 30 MHz of nationwide 3.45 GHz mid-band and 20 MHz of nationwide 600 MHz low-band, aimed at boosting 5G capacity and speeds. AT&T also extended its wholesale network partnership with EchoStar, which will continue operating as a hybrid mobile network operator under the Boost Mobile brand. The transaction arrives as AT&T shares have climbed 18% since the start of July, recovering ground lost after SpaceX's public debut in June spooked telecom investors. Second-quarter revenue rose over 2% to $31.6 billion, with diluted EPS of $0.66, and the company reiterated plans to reach more than 40 million fiber locations by the end of 2026.

AT&T has chosen Ericsson to supply 600 MHz dual-band radios that will put newly acquired spectrum from EchoStar to work across its nationwide wireless network. The 600 MHz spectrum travels farther and penetrates buildings better than higher-frequency bands, improving coverage in urban and rural areas as well as indoors. AT&T is more than 60% through its network modernization, and in upgraded areas customers are seeing up to a 2x improvement in average speeds, a 10% reduction in dropped and blocked calls, and up to 70% fewer instances of slower data speeds. The Ericsson radios also enable AT&T to deploy 8RX technology on low bands for the first time, reducing uplink interference by up to 80% and strengthening performance for AI-driven applications. The capital investments are included in AT&T’s second-quarter 2026 financial outlook, with further deployment details to be announced later.

SpaceX is laying the groundwork for a hybrid mobile network that could compete directly with established U.S. wireless carriers, a market generating over $300 billion in annual revenue. President Gwynne Shotwell confirmed during the Q2 earnings call that the company will deploy a terrestrial small-cell network alongside its satellite-based Direct-to-Cell system, which currently serves as backup connectivity for areas without cellular coverage. SpaceX has secured 65 MHz of nationwide mid-band spectrum from EchoStar and is in reported partnership discussions with Charter Communications to access broadband-connected locations and Wi-Fi offload infrastructure. However, analysts note significant hurdles, including satellite capacity limits in dense urban areas, indoor coverage challenges, and the operational complexity of running a consumer wireless business with billing, customer support, and retention. The U.S. wireless market is highly sticky, with major carriers losing only about 1% of postpaid subscribers monthly, meaning SpaceX would need to offer a substantially better experience or significantly lower prices to gain meaningful share.

U.S. wireless stocks tumbled Tuesday after SpaceX signaled plans to build a full-fledged mobile service, raising the prospect that Starlink could eventually compete directly with Verizon, AT&T and T-Mobile. SpaceX acquired 65 megahertz of wireless spectrum from EchoStar for a combined $19.6 billion across two deals announced last year, giving Starlink the airwaves needed to expand into mobile. SpaceX President Gwynne Shotwell said on a post-earnings call that the company plans to build the infrastructure to make Starlink a true mobile service and expects to pull quite a few customers away from the Big Three carriers. Shares of Verizon and AT&T fell more than 2% in premarket trading Wednesday, while T-Mobile slid 1.3%. The comments came alongside SpaceX's first earnings report as a public company, with second-quarter revenue totaling $7.8 billion, up 92% year-over-year, though capital expenditures surged to $18.4 billion from $2.8 billion a year earlier.

EchoStar announced that its Hughes business filed for Chapter 11 bankruptcy protection after missing a $1.5 billion bond maturity, while the parent company increased its share-repurchase authorization to $5 billion. Chairman Charlie Ergen said the bankruptcy proceedings are limited to Hughes entities and will not affect EchoStar Corporation, its other non-Hughes subsidiaries, or Hughes international entities. The company has approximately $14 billion to $15 billion in cash after reserving $2.4 billion for Boost-related network shutdown obligations, and it owns 261.8 million SpaceX shares. Boost Mobile remained slightly cash-flow positive but lost subscribers, and EchoStar continues to explore partnerships, mergers, and acquisitions. The company is also awaiting an FCC decision on selling certain spectrum assets.

EchoStar reported a second-quarter profit driven by a non-cash deconsolidation gain of approximately $9.73 billion, swinging from a year-ago loss. Net income attributable to EchoStar was $8.462 billion, or $24.12 per share, compared with a net loss of $306.13 million, or $1.06 per share, a year earlier. Excluding the tax-affected impact of the non-cash adjustment, net income would have been approximately $49.46 million. Total revenue declined to $3.576 billion from $3.725 billion in the prior-year quarter, while adjusted OIBDA rose to $681.20 million from $279.65 million. EchoStar shares were up nearly 1% in pre-market trading after closing at $84.09 on Friday.

AT&T completed its $23 billion acquisition of certain wireless spectrum licenses from EchoStar. The deal adds approximately 50 MHz of low-band and mid-band spectrum covering virtually every U.S. market, including 30 MHz of nationwide 3.45 GHz mid-band spectrum and approximately 20 MHz of nationwide 600 MHz low-band spectrum.

Amazon filed an application with the Federal Communications Commission for a license to operate a new network of 5,105 satellites that would provide service to mobile phones, with plans to start launching them in 2028. The move comes months after Amazon acquired the satellite operations of Globalstar, which provides emergency connectivity to Apple iPhones and internet-of-Things devices, and the filing revealed plans to leverage Globalstar's radio spectrum to expand these offerings and integrate them with Amazon's broadband internet satellite network, Leo. That sets up more competition with SpaceX, which dominates both satellite internet and satellite-to-mobile services and will spend $20 billion buying spectrum from Echostar to build out its mobile constellation. Still, it is not yet clear how valuable satellite-to-mobile connections will be, as most offer limited bandwidth suitable only for text messages or emergencies, and T-Mobile's CEO said in May that satellite usage was 0.0002% of total network usage, largely focused on national parks. Amazon faces an additional challenge without its own fleet of rockets, having depended on Jeff Bezos' Blue Origin and its delayed New Glenn rocket, which is now grounded after an anomaly destroyed its launch pad in May, forcing Amazon to request an extension to its FCC build-out deadline. Despite lagging behind SpaceX, Amazon's massive capital reserves of $255 billion in current assets as of the end of April mean it can keep investing in its network, while SpaceX's capital needs appear far more pressing.

AT&T is pivoting its growth strategy toward fiber, 5G and business network services, moving away from legacy media and video assets. In the second quarter of 2026, the company recorded over 1 million advanced connectivity net additions, including 646,000 Internet net additions and 432,000 postpaid phone net additions, with 367,000 fiber customer additions and a 29.5% year-over-year rise in advanced home Internet connections. The convergence rate reached 42.5%, meaning a growing share of Internet customers also hold an AT&T postpaid wireless plan, which management says halves churn and delivers a high-single-digit average revenue per account uplift. AT&T’s 5G strategy complements fiber, using millimeter-wave, mid-band and low-band spectrum to extend advanced Internet services to more than 90 million customer locations, while adding 279,000 fixed wireless customers in the quarter. The company is also positioning for AI-ready networks with over 20 metro mobile edge computing zones live and more than 150 active private 5G and edge trials, and plans to acquire EchoStar’s 600 MHz spectrum to strengthen low-band uplink capacity. On the efficiency front, AT&T aims to move 70% of wireless network traffic across open-capable platforms by late 2026 using Ericsson technology, targeting $4 billion in annual cost savings by the end of 2028. The stock carries a Zacks Rank of 3, or Hold, with a Value Score of A but a Growth Score of D and Momentum Score of F, reflecting a favorable valuation profile but weaker earnings growth and price trend signals.

AT&T reported stronger second-quarter results and raised its 2026 share repurchase target to about $10 billion from $8 billion after the expected EchoStar spectrum deal closes. Service revenue rose 2.7%, adjusted EBITDA grew 5.2%, and adjusted earnings per share increased to $0.65 from $0.54 a year ago. Free cash flow topped expectations at $4.7 billion, and the company added more than 1 million Advanced Connectivity subscribers across fiber, fixed wireless, and postpaid phones. AT&T also posted record second-quarter fiber net additions and said convergence between home internet and wireless remains a key strategy. Management reiterated its outlook for more than $18 billion in full-year free cash flow and expects leverage to normalize over time.

Venture capitalist Chamath Palihapitiya said on CNBC that combining SpaceX and Tesla under one corporate structure has “very obvious industrial logic” to create a single capital structure and balance sheet for funding Elon Musk’s broad range of projects. He estimated Tesla would likely require a 50% premium in any deal, above the typical 20% to 30%, due to the stock’s volatility and repeated shareholder lawsuits against Musk. Palihapitiya also speculated that SpaceX could unlock a large consumer wireless business through Starlink, using spectrum licenses acquired from EchoStar Corp. for about $17 billion to offer an integrated mobile phone service spanning AI, payments, and vehicle connectivity. No transaction has been announced, and any deal between the Musk-led companies would face review by independent directors and regulators.

J.P. Morgan analysts described a possible combination of SpaceX and Tesla as strategically coherent on paper, reviving speculation about a tie-up between Elon Musk's two largest ventures. The analysts argued that the companies already share engineering talent, artificial intelligence ambitions, and a common leader, and that SpaceX's recent public debut gives Musk valuable stock to pursue a deal. However, J.P. Morgan also flagged significant obstacles, including regulatory hurdles across multiple countries, the gap between Musk's near-total control of SpaceX and his smaller Tesla stake, and the likelihood that any transaction would resemble SpaceX absorbing Tesla rather than a merger of equals. Separately, Deutsche Bank initiated coverage of EchoStar with a buy rating, calling it a discounted way to own SpaceX shares, while Bloomberg reported that Charter Communications has held talks with SpaceX about a consumer mobile service.

SpaceX is planning to launch a direct-to-consumer Starlink mobile service in the U.S., according to a Financial Times report, marking a shift from partnering with wireless carriers to competing with them. Starlink already serves about 10.3 million subscribers across 164 countries as of March, with Elon Musk recently stating the network has surpassed 12 million active customers worldwide, and generated approximately $11.4 billion in 2025 revenue and $4.4 billion in operating profit. SpaceX acquired wireless spectrum licenses from EchoStar for about $17 billion last September and a second tranche for $2.6 billion in November, which could enable it to quickly create an effective and affordable mobile service. The U.S. wireless market is dominated by T-Mobile with over 130 million subscribers, Verizon with over 145 million, and AT&T with over 120 million, and even capturing 2% to 5% of that market would translate into 8 million to 20 million subscribers. If SpaceX packages Starlink broadband with an inexpensive mobile plan, pricing could become its biggest weapon, potentially reshaping the competitive landscape for wireless carriers by the end of the decade.

SpaceX is considering launching its own retail Starlink mobile service in the United States, President and COO Gwynne Shotwell told investors during a recent IPO roadshow. The company spent nearly $20 billion acquiring terrestrial wireless spectrum licenses from EchoStar, including AWS-4, H-block, and AWS-3 spectrum, in deals cleared by the Federal Communications Commission. A retail service would sell mobile contracts directly to consumers, moving beyond the current wholesale partnership with T-Mobile that fills rural coverage gaps. Starlink has surpassed 10 million subscribers globally, giving it a brand presence that could challenge Verizon, AT&T, and T-Mobile in the $1.6 trillion U.S. communications industry. No launch date has been confirmed, and building a terrestrial network from scratch would take years.

A bullish thesis on EchoStar Corporation argues the stock is mispriced, as its roughly 260 million post-split SpaceX shares—about 2% of the company—imply nearly $35 billion of gross value at a $135 IPO price, while an expected $20.25 billion AT&T cash payment will significantly reduce its $24.56 billion debt load, together exceeding EchoStar's approximately $32 billion market capitalization. Post-deleveraging and S&P 500 inclusion beginning March 2026, EchoStar would effectively become a clean holding company with publicly traded SpaceX exposure surpassing its entire equity value. Near-term price action is influenced by derivatives positioning, with short interest at 25.64%, days to cover at 7.68, and a 4.8:1 call-to-put ratio, creating mechanically driven volatility. Secondary NAV estimates place EchoStar at $155–165 per share, offering meaningful upside if SpaceX trades higher on debut, though risks include a delay in the AT&T closing or weaker-than-expected SpaceX IPO performance.