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DISH Network Corporation provides satellite delivered digital
television services in the United States. It offers direct broadcast
satellite subscription television services, as well as provides video,
audio and data channels, interactive television channels, digital video
recording, high definition (HD) television, international programming,
and professional installation services. The company designs and
develops DBS receivers, antennae, and other digital equipment. It also
designs, develops, and distributes equipment for international
satellite service providers, as well as offers receiver systems and HD
receivers. As of December 31, 2007, the company had 11 owned or leased
in-orbit satellites; and offered 2,700 video and audio channels to
consumers. DISH Network Corporation offers its products and services
through satellite retailers, direct marketing groups, consumer
electronics stores, nationwide retailers, and telecommunications
providers. The company was founded in 1980. It was formerly known as
EchoStar Communications Corporation and changed its name to DISH
Network Corporation in January 2008. DISH Network Corporation is
headquartered in Englewood, Colorado.
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DISH Network Corporation, formerly known as EchoStar Communications
Corporation, is a leading provider of satellite delivered digital
television to customers across the United States. DISH Network
services include hundreds of video, audio and data channels,
interactive television channels, digital video recording, high
definition television, international programming, professional
installation and 24-hour customer service.
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They started offering subscription television services on the DISH
Network in March 1996. As of December 31, 2007, they had approximately
13.780 million subscribers. Their satellite fleet enables us to offer
over 2,700 video and audio channels to consumers across the United
States. Since they use many of these channels for local programming,
no particular consumer could subscribe to all channels, but all are
available using small consumer satellite antennae, or dishes. They
promote the DISH Network programming packages as providing their
subscribers with a better “price-to-value” relationship than those
available from other subscription television providers. They believe
that there continues to be unsatisfied demand for high quality,
reasonably priced television programming services.
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Their principal business strategy is to continue developing their
subscription television service in the United States to provide
consumers with a fully competitive alternative to others in the pay TV
industry.
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They presently utilize eleven satellites in geostationary orbit
approximately 22,300 miles above the equator. Of these eleven
satellites, four are owned by us and they lease capacity on six
satellites from EchoStar. They account for the satellites leased from
EchoStar as operating leases with terms of up to two years. (See Note
12 for further discussion of their satellite leases with EchoStar.)
Each of the owned satellites had an original estimated minimum useful
life of at least 12 years. They also lease one satellite from a third
party, which is accounted for as a capital lease pursuant to Statement
of Financial Accounting Standards No. 13, “Accounting for Leases”
(“SFAS 13”). The capital lease is depreciated over the fifteen year
term of the satellite service agreement.
Operation of their subscription television service requires that they
have adequate satellite transmission capacity for the programming they
offer. Moreover, current competitive conditions require that they
continue to expand their offering of new programming, particularly by
launching more HD local markets and offering more HD national channels.
While they generally have had in-orbit satellite capacity sufficient to
transmit their existing channels and some backup capacity to recover
the transmission of certain critical programming, their backup capacity
is limited.
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