Dish Network 2000 Annual Report Download - page 12

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10
ECHOSTAR TECHNOLOGIES CORPORATION
Employees of EchoStar Technologies Corporation, one of our wholly-owned subsidiaries, internally design
and engineer EchoStar receiver systems. Our satellite receivers have won numerous awards from the Consumer
Electronics Manufacturers Association, dealers, retailers, and industry trade publications. We outsource the
manufacture of EchoStar receiver systems to third parties who manufacture the receivers in accordance with our
specifications.
We created our ETC division in connection with the development of the DISH Network. We believe that
we have an opportunity to grow this business further in the future. The same employees who design EchoStar
receiver systems for the DISH Network are also involved in designing set-top boxes sold to international TV
customers. Our satellite receivers are designed around the DVB standard, which is widely used in Europe and Asia.
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.
In addition to supplying EchoStar receiver systems for the DISH Network, ETC supplies similar digital
satellite receivers to international satellite TV service operators and a variety of digital and analog receivers to
consumers through our international distribution network. We believe that direct-to-home satellite service is well-
suited for countries without extensive cable infrastructure. We also offer consulting and integration services to
development stage, international direct-to-home satellite operators, which may result in sales of receiver systems to
these customers. We are actively soliciting new business for ETC, but we can not provide any assurance in that
regard.
Our two major international customers are Via Digital, a subsidiary of Telefonica, Spain’s largest telephone
company, and Bell ExpressVu, a subsidiary of Bell Canada, Canada’s largest telephone company. Our future
revenue in this area depends largely on the success of these operators, 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.
ETC’s business also includes our Atlanta-based EchoStar Data Networks Corporation and our UK-based
Eldon Technology Limited subsidiaries. EchoStar Data Networks is a supplier of technology for distributing Internet
and other content over satellite networks. Eldon Technology designs various components of digital televisions and
set-top boxes, strengthening our product design capabilities for satellite receivers and integrated televisions in both
the international and United States markets.
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 business unit primarily leases capacity on our satellites to customers, including
international services that broadcast foreign-language programming to our subscribers, and Fortune 1000 companies
that use our business television service to communicate with employees, customers, distributors, and suppliers
located around the United States.