EchoStar Corporation’s SATS subsidiary, Hughes Network Systems, recently collaborated with Airbus EADSY as a Managed Service Provider (MSP) within the HBCplus in-flight connectivity (IFC) ecosystem. With Hughes solutions now included in the Airbus catalog, airlines will gain access to advanced connectivity options that are flexible and aligned with evolving passenger needs. The initiative combines two aerospace and satellite communication giants, aiming to transform how airlines deliver onboard digital experiences.

The HBCplus ecosystem, spearheaded by Airbus, is an innovative end-to-end solution that provides Ka-band managed connectivity services. By teaming up with Hughes, EADSY is likely to expand the ecosystem’s technological capabilities and business model flexibility, which ensures reliable service across all flight routes, including the challenging polar regions.

Hughes is actively developing Low-Earth Orbit (LEO) satellite integration into its service offering, which enables lower latency and improved performance, especially over remote locations. As more passengers expect to remain connected, and as airlines seek seamless, high-performance solutions to meet those demands, the inclusion of Hughes in the Airbus HBCplus ecosystem gives SATS a competitive edge over other players in the satellite industry.

Hughes’ Strategic Advancements Unlock Greater Opportunities

Hughes continues to drive innovation in the satellite industry, creating new avenues of growth for EchoStar. According to management, Hughes has stood out among top-tier competitors, riding on its advanced service capabilities and robust customer support. In particular, the company’s managed LEO business achieved a milestone in 2024 by delivering more than 15,000 Hughes-designed user terminals. Customer feedback on these deployments has been overwhelmingly positive.

In March 2025, Hughes unveiled the Hughes Fusion Simultaneous Multi-Orbit IFC Solution set to transform the in-flight experience on Delta Air Lines’ new A350 and A321neo aircraft, along with an expanded rollout on more than 400 Delta ERJ, CRJ and Boeing 717 aircraft. In September 2024, Hughes took digital signage to the next level with the launch of the HS600 Media Player. The initiative is aimed at helping businesses streamline their content delivery to any HDMI-enabled screen. 

In July 2024, it introduced a small business package from Hughes Managed Cybersecurity that safeguards the interests of its employees and customers. The acclaimed solution can provide cyber protection, content filtering, higher network availability, flexible Wi-Fi connectivity and real-time threat intelligence.

Despite Hughes’ strengths, potential subscriber losses are putting pressure on EchoStar’s top-line performance. In the last reported quarter, the company reported a 5% year-over-year decline to $4 billion.

SATS’ Zacks Rank & Stock Price Performance

At present, EchoStar has a Zacks Rank #3 (Hold). In the past year, shares have soared 55.3% compared with the Zacks Satellite and Communication industry's growth of 18.7%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are InterDigital, Inc. IDCC and CommScope Holding COMM. IDCC & COMM presently sport a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 15%.

Headquartered in Hickory, NC, CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. The company currently operates in three segments — Connectivity and Cable Solutions, Networking, Intelligent Cellular and Security Solutions and Access Network Solutions. It has a long-term growth expectation of 19.37%.

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