Dish Network 2000 Annual Report Download - page 3

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PART I
All statements contained herein, as well as statements made in press releases and oral statements that may
be made by us or by officers, directors or employees acting on our behalf, that are not statements of historical fact
constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause
our actual results to be materially different from historical results or from any future results expressed or implied by
such forward-looking statements. Among the factors that could cause our actual results to differ materially are the
following: a total or partial loss of one or more satellites due to operational failures, space debris or otherwise;
delays in the construction of our seventh, eighth or ninth satellites; an unsuccessful deployment of future satellites;
inability to settle outstanding claims with insurers; a decrease in sales of digital equipment and related services to
international direct-to-home service providers; a decrease in DISH Network subscriber growth; an increase in
subscriber turnover; an increase in subscriber acquisition costs; an inability to obtain certain retransmission
consents; our inability to retain necessary authorizations from the FCC; an inability to obtain patent licenses from
holders of intellectual property or redesign our products to avoid patent infringement; an increase in competition
from cable as a result of digital cable or otherwise, direct broadcast satellite, other satellite system operators, and
other providers of subscription television services; the introduction of new technologies and competitors into the
subscription television business; a change in the regulations governing the subscription television service industry;
the outcome of any litigation in which we may be involved; general business and economic conditions; and other
risk factors described from time to time in our reports and statements filed with the Securities and Exchange
Commission. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to
consider statements that include the terms “believes,” “belief,” “expects,” “plans,” “anticipates,” “intends” or the
like to be uncertain and forward-looking. All cautionary statements made herein should be read as being applicable
to all forward-looking statements wherever they appear. In this connection, investors should consider the risks
described herein and should not place undue reliance on any forward-looking statements.
Item 1. BUSINESS
GENERAL
Our common stock and series C preferred stock are publicly traded on the Nasdaq National Market under
the symbols “DISH” and “DISHP”, respectively. We conduct substantially all of our operations through our
subsidiaries. We operate three business units:
•The DISH Network — a direct broadcast satellite subscription television service, which we refer to as
DBS, in the United States. As of December 31, 2000, we had approximately 5.26 million DISH
Network subscribers.
•EchoStar Technologies Corporation — engaged in the design, development, distribution and sale of
DBS set-top boxes, antennae and other digital equipment for the DISH Network, which we refer to as
EchoStar receiver systems, the design, development and distribution of similar equipment for
international direct-to-home satellite and other systems, which we refer to as DTH, and 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.
DISH Network
We started offering subscription television services on the DISH Network in March 1996. As of
December 31, 2000, approximately 5.26 million households subscribed to DISH Network programming services.
We now have six DBS satellites in orbit which enable us to offer over 500 video and audio channels, together with
data services and high definition and interactive TV services, to consumers across the continental United States
through the use of a small satellite dish. Since we use many of these channels for local programming, no particular