Why is HughesNet losing customers?
HughesNet was the default rural internet option for years. Its subscriber base has more than halved since 2020. Here's why, and what current customers should do.
Mostly Starlink. Low-orbit satellite internet offers far lower latency and faster speeds, while 5G home internet and rural fiber reach more homes. HughesNet ended June 2026 with 622,000 subscribers, and its parent filed for Chapter 11 on Aug 2, 2026 while continuing to serve customers.
The numbers
Why customers are leaving
- Starlink: its low-orbit satellites give much lower latency than HughesNet's geostationary ones, about 22,000 miles up, and it now starts at $55/mo with no contract.
- 5G home internet: T-Mobile, Verizon and AT&T now reach many rural addresses for about $50/mo.
- Rural fiber: federal and state programs are funding fiber in areas that once had only satellite.
- Latency: around 600 ms or more makes video calls and gaming hard on HughesNet.
The bankruptcy
Hughes filed for Chapter 11 on Aug 2, 2026, with about $1.5 billion in debt coming due. Its plan includes cutting about 400 of 1,275 jobs and focusing more on enterprise and government customers, while continuing to serve its satellite customers. No final restructuring plan had been approved as of August.
What current customers should do
- Keep paying and using the service; it continues during Chapter 11.
- Check your contract end date and early termination fee before switching: see how to cancel HughesNet.
- Test alternatives at your address: HughesNet vs. Starlink and the best rural internet.
Is HughesNet still worth it?
For most homes, only if nothing else reaches them. HughesNet Lite is $39.99/mo for 12 months, cheaper than Starlink's $55, but its latency rules out smooth video calls and fast online games. Check 5G and Starlink at your address first.
Questions
Is HughesNet going out of business?
Hughes filed for Chapter 11 on Aug 2, 2026, but it continues to serve satellite customers while it restructures. The company plans to focus more on enterprise and government customers.
How many customers does HughesNet have?
622,000 broadband subscribers as of June 30, 2026, down from about 1.6 million at its 2020 peak.
Why are people leaving HughesNet?
Mainly for Starlink, which has much lower latency and faster speeds, and for 5G home internet and new rural fiber.
Will HughesNet shut down?
No shutdown has been announced. Hughes continues to serve customers during its Chapter 11 restructuring, while shifting focus toward enterprise and government.
- Plan pages and Broadband Facts labels from HughesNet, checked Oct 2026
- Company press releases and regulatory filings on the ownership changes mentioned
Prices and offers change often; confirm at your address before you order. How we research
Jean founded ShopHighSpeed after trying to find one straight answer about business internet in his own town. He has been a Comcast and Verizon Fios customer, and ranks providers on what they actually deliver, not on what they advertise.
