Dish Network 2000 Annual Report Download - page 58

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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, 2000, we had approximately 5.26 million DISH Network subscribers.
• EchoStar Technologies Corporation (“ETC”) - engaged in the design, development, distribution and sale of
DBS set-top boxes, antennae and other digital equipment for the DISH Network (“EchoStar receiver
systems”), the design, development and distribution of similar equipment for international direct-to-home
(“DTH”) satellite and other systems 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.
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, six DBS satellites ("EchoStar I,"
"EchoStar II," "EchoStar III," "EchoStar IV," "EchoStar V," and “EchoStar VI”), EchoStar receiver systems, 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 1999,
EchoStar placed ownership of all of its direct broadcast satellites and related FCC licenses into EchoStar Satellite
Corporation. DirectSat Corporation, Direct Broadcasting Satellite Corporation and EchoStar Space Corporation
were merged into ESC. Dish, Ltd. and EchoStar Satellite Broadcasting Company were merged into EchoStar DBS
Corporation. EchoStar IV and the related FCC licenses were transferred to ESC. During September 2000, EchoStar
Broadband Corporation was formed for the purposes of issuing new debt. Contracts for the construction and launch
of EchoStar VII, EchoStar VIII and EchoStar IX are held in EchoStar Orbital Corporation. Substantially all of
EchoStar’s operations are conducted by subsidiaries of EBC.
The following table summarizes the organizational structure of EchoStar and its principal subsidiaries as of
December 31, 2000:
Legal Entity
Referred to
Herein As
EchoStar Communications Corporation ECC Publicly owned
EchoStar Broadband Corporation EBC ECC
EchoStar DBS Corporation EDBS EBC
EchoStar Orbital Corporation EOC EBC
EchoStar Satellite Corporation ESC EDBS
Echosphere Corporation Echosphere EDBS
EchoStar Technologies Corporation ETC EDBS