The proliferation of consumer "cord-cutters" has caused economic distress for the satellite television services, such as Dish Wireless, forcing restructurings and bankruptcies as the percentage of households subscribing to satellite TV services continues to decline as they switch to streaming services.
EchoStar Corporation, which owns Dish Wireless satellite TV service, reported a net loss of 366,000 paid subscribers in the quarter ended March 31, 2026, with a total of 6.63 million subscribers, Cord Cutters News reported. The company had lost 381,000 subscribers in the same quarter in 2025.
The loss of hundreds of thousands of subscribers has contributed to financial distress, which has led EchoStar's affiliate Dish Wireless to seek bankruptcy protection.
Satellite TV provider Dish Wireless LLC and 17 affiliates, including Sling TV LLC, filed for a prepackaged Chapter 11 bankruptcy which includes a restructuring support agreement that will reorganize the company and facilitate the $23 billion sale of parent EchoStar's wireless spectrum licenses to AT&T.
AT&T and EchoStar unveiled the wireless spectrum licenses sale on Aug. 26, 2025, which covered over 400 markets across the U.S., or virtually every market nationwide. Under the deal, EchoStar would operate as a hybrid mobile network operator providing wireless service under its Boost Mobile brand
AT&T would be the primary network services partner to EchoStar as it serves wireless customers.
EchoStar and Dish Wireless will receive a $20.25 billion net payment when the AT&T transaction closes that will allow the debtor to pay off billions in debts. Among the debts is $2 billion of 7.75% senior secured notes due July 1, 2026, which was one of the reasons for filing for bankruptcy protection on June 30.
Dish Wireless did not have sufficient funds to pay off the senior secured notes on the due date, but the notes will be paid in full in cash as soon as possible once the AT&T transaction closes or on the effective date of the plan, according to a company statement.
EchoStar also in September 2025 agreed to sell its AWS-4 and H-Block spectrum licenses to Elon Musk's SpaceX for $17 billion, consisting of up to $8.5 billion in cash and $8.5 billion in SpaceX stock.
The parties will enter into a long-term commercial agreement, which will enable EchoStar's Boost Mobile subscribers to access SpaceX's next generation Starlink Direct to Cell service.
Under the restructuring support agreement, the debtor will be able to pay off billions of debts early to avoid penalties. EchoStar's brands, employees, and customers will not be affected by the case.
The Englewood, Colo.-based debtor expects to emerge from bankruptcy by the end of the third quarter of 2026.
Dish Wireless listed $1 billion to $10 billion in assets and $10 billion to $50 billion in debts in its petition filed in the U.S. Bankruptcy Court for the Southern District of Texas.
The debtor's largest unsecured creditors include US Bank Trust Company NA, owed $2.5 million; Wilmington Savings Fund Society FSB, owed $2 billion; ESPN, owed over $69 million; Turner Network Sales Inc., owed over $42 million; Nexstar, owed over $40 million; Fox Corporation, owed over $38 million USA Network, owed over $34 million; Sinclaire Television Group, owed over $30 million; and MTV Networks, owed over $30 million.
Wireless spectrum licenses sale to AT&T: $23 billion. Source: EchoStar.
AWS-4 and H-Block spectrum licenses sale to SpaceX: $17 billion. Source: EchoStar.
This story was originally published by TheStreet on Jul 1, 2026, where it first appeared in the Technology section. Add TheStreet as a Preferred Source by clicking here.
Originally reported by Yahoo Finance.