EchoStar Corp's (NASDAQ:SATS) satellite internet service provider HughesNet will refer its customers to Elon Musk-backed Starlink following the recent $2.6 billion deal.

Fee-Based Referral Program

In an SEC filing on Friday submitted by the company, HughesNet shared that it would be providing existing customers with a referral to SpaceX. "The commercial agreements will also provide for a fee-based referral program that lets us refer existing HughesNet customers and new Starlink customers to SpaceX," the filing said. 

EchoStar didn't immediately respond to Benzinga's request for comment.

The filing did not provide any additional information regarding the agreement or what the fee structure for referrals would look like. The filing also mentioned that HughesNet was facing cash issues.

"Because we do not currently have the necessary Cash on Hand and/or projected future cash flows or committed financing to fund our obligations," for at least a year, there is concern about continuing its operations.

"We are in active discussions with funding sources to raise additional capital and/or restructure our outstanding debt," the company said, but reiterated that it can't provide reassurances of success.

Starlink's $40 Plan, SpaceX's Potential IPO

Starlink recently introduced an affordable $40/month plan called the ‘Residential 100 MBPS' plan for the U.S., which would also include free installation as well as no limit on upload speeds for users. However, the download speeds for the plan would be capped at 100 MBPS.

Meanwhile, Musk hinted at a potential public listing for SpaceX during Tesla Inc.'s (NASDAQ:TSLA) shareholder meeting earlier this month. "Maybe at some point SpaceX should become a public company," Musk said during his address to investors.

EchoStar scores well on the Momentum metric, but offers poor Growth. It also has a favorable price trend in the Medium and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!

Price Action: SATS slipped 3.69% to $67.40 at the end of regular trading on Friday, but it surged almost 1% to $68.05 during Pre-market.

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