Dish Network 1999 Annual Report Download - page 55

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F–7
1. Organization and Business Activities
Principal Business
The operations of EchoStar Communications Corporation (“ECC,” and together with its subsidiaries, or
referring to particular subsidiaries in certain circumstances, “EchoStar” or the “Company”) include three interrelated
business units:
• The DISH Network – a direct broadcast satellite (“DBS”) subscription television service in the United
States. As of December 31, 1999, EchoStar had approximately 3.4 million DISH Network subscribers.
• EchoStar Technologies Corporation (“ETC”) – engaged in the design of DBS set-top boxes, antennae
and other digital equipment for the DISH Network (“EchoStar receiver systems”), and the design and
distribution of similar equipment for direct-to-home (“DTH”) projects of others internationally,
together with the provision of uplink center design, construction oversight and other project integration
services for international DTH ventures.
• Satellite Services – engaged in the delivery of video, audio and data services to business television
customers and other satellite users. These services may include satellite uplink services, satellite
transponder space usage, billing, customer service and other services.
Since 1994, EchoStar has deployed substantial resources to develop the “EchoStar DBS System.” The
EchoStar DBS System consists of EchoStar’s FCC-allocated DBS spectrum, DBS satellites (“EchoStar I,”
“EchoStar II,” “EchoStar III,” “EchoStar IV,” and “EchoStar V”), digital satellite receivers, digital broadcast
operations centers, customer service facilities, and other assets utilized in its operations. EchoStar’s principal
business strategy is to continue developing its subscription television service in the United States to provide
consumers with a fully competitive alternative to cable television service.
Organization and Legal Structure
In December 1995, ECC merged Dish, Ltd. with a wholly-owned subsidiary of ECC. During the first
quarter of 1999, EchoStar placed ownership of all of its direct broadcast satellites and related FCC licenses into
EchoStar Satellite Corporation (“ESC”). DirectSat Corporation, Direct Broadcasting Satellite Corporation
(“DBSC”) and EchoStar Space Corporation (“Space”) were merged into ESC. Dish, Ltd. and EchoStar Satellite
Broadcasting Company (“ESBC”) were merged into EchoStar DBS Corporation (“DBS Corp”). EchoStar IV and
the related FCC licenses were transferred to ESC. Substantially all of EchoStar’s operations are conducted by
subsidiaries of DBS Corp.
The following table summarizes the organizational structure of EchoStar and its principal subsidiaries as of
December 31, 1999:
Legal Entity
Referred to
Herein As
EchoStar Communications Corporation ECC Publicly owned
EchoStar DBS Corporation DBS Corp ECC
EchoStar Satellite Corporation ESC DBS Corp
Echosphere Corporation Echosphere DBS Corp
EchoStar Technologies Corporation ETC DBS Corp