Dish Network 1999 Annual Report Download - page 7

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5
from 19 offices to approximately 50 offices. We also plan to integrate business partners as external installation
providers. Our external installation business partners will be held to DISH Network Service Corporation service
standards to attempt to ensure each DISH Network customer receives the same quality installation and service. Our
offices and external business partners will be strategically located throughout the continental United States, in order to
enable us to provide service to a greater number of DISH Network customers throughout the country. Currently,
customers’ installations may be delayed due to rapid subscriber growth resulting in a large demand for DISH Network
professional installation services. Although there can be no assurance, we believe this expansion of our installation
business will decrease wait time on service calls and new installations and help us to better accommodate anticipated
subscriber growth.
Customer Service Center. We currently own and operate customer service centers in Thornton, Colorado,
Littleton, Colorado, McKeesport, Pennsylvania and El Paso, Texas. These centers field all of our customer service
calls. Potential and existing subscribers can call a single telephone number to receive assistance for hardware,
programming, installation and technical support. Due to rapid subscriber growth and recent marketing promotions,
some customers are currently experiencing longer than anticipated wait times. However, we plan to open a fifth
customer service center during 2000 to provide additional customer support and help us to better accommodate
anticipated subscriber growth.
Digital Broadcast Operations Center. Our principal digital broadcast operations center is located in
Cheyenne, Wyoming. During 1999, we acquired a second digital broadcast operations center in Gilbert, Arizona.
During 2000, we plan to “build-out” the Gilbert facility to be used as a back up for our main digital broadcast
operations center in Cheyenne. Upon commercial operation of EchoStar VII and EchoStar VIII we plan to also begin
utilizing the Gilbert facility as a primary digital broadcast operations center. Almost all of the functions necessary to
provide satellite-delivered services occur at the digital broadcast operations center. The digital broadcast operations
center uses fiber optic lines and downlink antennas to receive programming and other data at the center. The digital
broadcast operations center uplinks programming content to our DBS satellites via large uplink antennas. The digital
broadcast operations center also maintains a number of large uplink antennas and other equipment necessary to
modulate and demodulate the programming and data signals. Equipment at our digital broadcast operations center
performs all compression and encryption of the DISH Network’s programming signals.
Subscriber Management. We presently use, and are dependent on, CSG Systems Incorporated’s software
system, for all DISH Network subscriber management and billing functions.
Sales and Marketing
Approximately 20,000 independent dealers and distributors, retailers and consumer electronics stores
currently sell EchoStar receiver systems and DISH Network programming services. While we also sell receiver
systems and programming directly, independent dealers are responsible for most of our sales. These independent
dealers are primarily local retailers who specialize in TV and home entertainment systems.
We intend to enhance consumer awareness of our products by continuing to form alliances with nationally
recognized distributors of other consumer electronics products. We have formed strategic alliances with JVC and
Philips. JVC and Philips now distribute our receiver systems under their labels through certain of their nationwide
retailers.
Through our direct sales efforts, customers can call a single telephone number (1-800-333-DISH) 24 hours a
day, seven days a week, to order EchoStar receiver systems, activate programming services, resolve billing questions,
schedule installation or obtain technical support. We believe that we are presently the only DBS provider to offer a
comprehensive, single-point customer service function.
We offer our distributors and retailers a competitive residual, or commission, program. The program pays
qualified distributors and retailers an activation bonus, along with a fixed monthly residual for programming services
while the respective DISH Network subscriber remains active.