Dish Network 1998 Annual Report Download - page 14

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those frequencies for telemetry, tracking and control operations in January 1999. We have timely filed a request to
extend the authorization to November 2006. We do not know whether the FCC will extend that authorization. If the
FCC refuses to extend our authorization, we might not be able to control EchoStar II, which could result in a total
loss of the satellite unless we were able to move it to another location. Recently, the FCC released a notice of
proposed rulemaking that may inhibit future satellite operations in the “extended” C-band frequencies. The FCC also
is no longer accepting earth station applications in that band. These recent developments might have negative
implications for us.
International Telecommunication Union Standards
Our DBS system also must conform to the ITU broadcasting satellite service plan. If any of our operations
are not consistent with this plan, the ITU will only provide authorization on a non-interference basis pending
successful modification of the plan or the agreement of all affected administrations to the non-conforming operations.
Accordingly, unless and until the ITU modifies its broadcasting satellite service plan to include the technical
parameters of DBS applicants’ operations, our satellites, along with those of other DBS operators, must not cause
harmful electrical interference to other assignments that are in conformance with the plan. Further, DBS satellites are
not presently entitled to any protection from other satellites that are in conformance with the plan. To our knowledge,
the United States government has filed modification requests with the ITU for EchoStar I, II and III. The ITU has
requested certain technical information in order to process the requested modifications. We have cooperated, and
continue to cooperate, with the FCC in the preparation of its responses to the ITU requests. We cannot predict when
the ITU will act upon these requests for modification or if they will be granted.
Authorizations and Frequencies that We Could Lose
We also have conditional authorizations for several other DBS and fixed service satellites that are not
operational. One permit for 10 unspecified western frequencies was set to expire on August 15, 1995. Although we
filed a timely extension request, the FCC has deferred a decision on that request pending the FCC’s analysis of our
due diligence for that permit. The FCC has not yet assigned the frequencies related to that permit because in 1992 it
held that we had not completed contracting for these western assignments – the first prong of the required diligence –
and asked us to submit amended contract documentation. Although we submitted such documentation, the FCC has
not yet ruled on this matter, and we cannot be sure that the FCC will rule in our favor.
We also have a conditional permit for one frequency at the 110° WL orbital location and a total of 11
western frequencies at the 175° WL orbital location that is set to expire on August 15, 1999. That expiration date is
pursuant to an extension granted by the FCC’s International Bureau in 1996. That extension was subject to the
condition that we make significant progress toward construction and operation of a DBS system substantially in
compliance with, or ahead of, the most recent timetable that we submitted to the FCC. The FCC’s International
Bureau also urged us to expedite construction and launch of additional satellites for our DBS system at these
frequencies. PrimeStar filed a request with the FCC that is still pending requesting that the FCC reverse the
International Bureau’s grant of an extension.
We also have a conditional permit for 11 additional frequencies at 175° WL, which was set to expire on
November 30, 1998. That expiration date was pursuant to an extension granted by the FCC’s International Bureau in
1995. When it granted the extension, the FCC reserved the right to cancel the permit if we failed to progress toward
operation of the DBS system in accordance with the timetable that we submitted to the FCC. That extension also is
subject to a still pending challenge by PrimeStar.
While we have timely filed requests for extension of all the western permits, we cannot be sure how the
FCC will act with respect to these requests.
Other Licenses and Conditional Authorizations
We also have received licenses and conditional authorizations from the FCC to operate satellites in the Ka-
band, Ku-band and extended Ku-band frequencies. Use of those licenses and conditional authorizations are subject to
certain due technical and due diligence requirements, including the requirement to construct and launch additional
satellites. The granting of those licenses has been challenged by parties with interests that are adverse to ours. If we