Dish Network 1999 Annual Report Download - page 6

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including a new electronic program guide, a local weather application and other innovative interactive applications
for consumers. In addition, OpenTV is expected to develop and produce a number of applications and interactive
TV services for the joint venture, which will include video replay, interactive TV advertising, and entertainment
services.
We also recently signed an agreement with Gilat Satellite Networks Ltd. that will enable us to jointly offer
consumers two-way, high-speed satellite Internet access along with DISH Network satellite television programming
via a single dish. We believe this technology is particularly well-suited for areas without cable infrastructure. Two-
way satellite service offers significant benefits for consumers, including a persistent or “always on” connection that
saves time over dial-up methods and eliminates the need for a second phone line. DISH Network customers will
need an oblong dish, approximately 24 inches by 36 inches, and other equipment to take advantage of two-way
Internet satellite service. We expect to offer consumers a complete hardware and services solution for broadband
Internet access combined with DISH Network programming by the end of 2000. We are also seeking additional
ways to expand our Internet and high-speed data services that may include, but are not limited to, partnerships with
third parties who have particular expertise in the high speed transmission of digital information. Although there can
be no assurance, we believe we will be able to increase our subscriber base and our average revenue per subscriber by
offering these and other similar services.
Local Strategy. In order to provide the strongest possible competition to cable, and thereby maximize our
potential market, we currently provide major local broadcast network channels to certain of our subscribers. Subject to
eligibility conditions, we currently offer satellite-delivered local network signals to consumers in some of the largest
markets in the continental United States, including Atlanta, Boston, Chicago, Cleveland, Dallas/Ft. Worth, Denver,
Detroit, Houston, Kansas City, Los Angeles, Miami/Ft. Lauderdale, Minneapolis/St. Paul, Nashville, New York,
Orlando, Philadelphia, Phoenix, Portland, Pittsburgh, Sacramento, Salt Lake City, San Francisco/Oakland/San Jose,
Seattle/Tacoma, St. Louis, Tampa/St. Petersburg and Washington, D.C. EchoStar VII and EchoStar VIII will be
equipped with spot-beam technology that will allow us to offer local channels in as many as 60 or more markets across
the United States without reducing our current programming offerings.
EchoStar Receiver Systems. EchoStar receiver systems include an 18-20 inch satellite dish, a digital satellite
receiver that descrambles signals for television viewing, a remote control, and other related components. We offer a
number of set-top box models. Our standard system comes with an infrared remote control, an on-screen program
guide, and the ability to switch between DISH Network and off-air local programming using the remote control. Our
mid-level model has all of the basic features but also includes a UHF remote control that allows subscribers to control
their EchoStar receiver system from up to 150 feet away through walls, and a high-speed data port. Our premium
model includes additional features such as on-screen caller identification capability, event timers to automatically tune
into or record selected programming and one-touch VCR recording. We also offer a variety of specialized receiver
systems such as HDTV receiver systems, receiver systems that include either a VCR or DVD player and receivers
capable of receiving Internet TV services. DISH Network reception equipment is incompatible with competitors’
systems in the United States.
Although we internally design and engineer our receiver systems, we do not manufacture these systems.
Rather, we outsource the manufacturing process to high-volume contract electronics manufacturers. SCI Technology,
Inc. manufactures the majority of our receiver systems. During 1998, Vtech Communications, Ltd. began
manufacturing our set-top boxes. JVC Company of America manufactures consumer electronics products, including a
digital VCR with an integrated EchoStar receiver system.
During the fourth quarter of 2000, together with OpenTV we expect to offer DISH Network customers and
other video platforms around the world a low cost, interactive digital receiver with a built-in hard disk drive that
would permit viewers to pause and record live programs without the need for video tape. The new set-top box is
also expected to offer interactive television services developed by OpenTV, including a new electronic program
guide, a local weather application and other innovative interactive applications for consumers.
Installation. While many consumers have the skills necessary to install our equipment in their homes, we
believe that most installations are best performed by professionals, and that on time, quality installations are important
to our success. Consequently, we are currently expanding our installation business, conducted through our DISH
Network Service Corporation subsidiary. During 2000, we plan to expand our DISH Network Service Corporation