Dish Network 1998 Annual Report Download - page 11

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operators. We are actively soliciting new business for ETC and, while we are optimistic about future growth
opportunities, we can not provide any assurance in that regard.
Our ETC division resulted from the development of the DISH Network. We believe that we have an
opportunity to grow this business in the future. The employees who design EchoStar receiver systems for the DISH
Network are the same as those who design the set-top boxes sold to international direct-to-home satellite TV
customers. Consequently, international ETC projects may result in improvements in design and economies of scale in
the production of EchoStar receiver systems for the DISH Network.
Currently, we provide digital set-top boxes to two international direct-to-home satellite TV providers, one in
Canada and one in Spain. A substantial portion of our ETC revenue in 1997 and 1998 resulted from sales to these two
direct-to-home satellite TV providers. As a result, our ETC business currently is economically dependent upon these
two providers. If we are able to consummate the 110 acquisition, we would receive a minimum order from a
subsidiary of News Corporation for 500,000 set-top boxes. Although we continue to actively pursue other similar
distribution and integration service opportunities, we have not executed additional agreements. Our future revenue in
this area depends largely on the success of the direct-to-home satellite TV operators we supply in Canada and Spain,
which in turn, depends on other factors, such as the level of consumer acceptance of direct-to-home satellite TV
products and the intensity of competition for international subscription television subscribers.
Competition For Our ETC Business
We compete with a substantial number of foreign and domestic companies, many of which have
significantly greater resources, financial or otherwise, than we have. We expect new competitors to enter this market
because of rapidly changing technology. Our ability to anticipate these technological changes and introduce enhanced
products expeditiously will be a significant factor in our ability to remain competitive. Existing competitors’ actions
and new entrants may have a material adverse impact on our revenues. We do not know if we will be able to
successfully introduce new products and technologies on a timely basis in order to remain competitive.
SATELLITE SERVICES
Our Satellite Services division primarily leases capacity on our satellites to customers on either a monthly
or hourly basis. Full-time customers tend to be international services that broadcast foreign language programming
to DISH Network subscribers. Part-time customers are typically Fortune 1000 companies that use our satellite
network for business television service to communicate with employees, customers and suppliers located around
the United States. In addition, we are developing a wide range of Internet and high-speed data services that we
expect to offer to consumers beginning in mid-1999.
Competition For Our Satellite Services Business
We compete with a number of other companies, including those using similar and different technologies, to
provide Satellite Services. Many of these competitors have substantially greater financial and other resources than we
have. Our principal competitors include, other satellite system operators, cable television system operators, Internet
service providers, and telephone companies. We believe that we can compete with these other companies based on
our knowledge and experience in the direct-to-home satellite TV and DBS industry, our technological leadership and
new product capabilities, the quality of our video, audio and data transmissions, the quality of service provided, and
cost.