Dish Network 2001 Annual Report Download - page 108

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–43
initiative to develop new non-exclusive satellite-delivered broadband channels featuring interactive games, movies,
sports, education, and music to be launched within a three-year period following consummation of the agreement.
Also as part of the alliance, EchoStar will integrate Vivendi Universal’s advanced, interactive middleware
technology, MediaHighway, a Canal+Technology, as a non-exclusive middleware solution that will provide DISH
Network customers using personal video records unique interactive television services, such as movies from Vivendi
Universal and music from Universal Music Group.
EchoStar III
During January 2002, a transponder pair on EchoStar III failed, resulting in a temporary interruption of
service. The operation of the satellite was quickly restored. Including the five transponders pairs that malfunctioned in
prior years, these anomalies have resulted in the failure of a total of twelve transponders on the satellite to date. While
a maximum of 32 transponders can be operated at any time, the satellite was equipped with a total of 44 transponders to
provide redundancy. In addition, EchoStar is only licensed by the FCC to operate 11 transponders at the 61.5 degree
orbital location (together with an additional six leased transponders).
EchoStar VII
EchoStar VII was launched on February 21, 2002 from Cape Canaveral, Florida. EchoStar VII will be tested
at the 129 degree orbital location and will then be moved to the 119 degree orbital location for commercial service.
Assuming successful completion of in-orbit testing, EchoStar VII is expected to commence commercial service at the
119 degree orbital location during the second quarter of 2002. EchoStar VII is planned to replace the capacity of the
EchoStar IV satellite, which has experienced a series of anomalies materially impacting its functionality. Operating
from the 119 degree orbital location, EchoStar VII, assuming successful completion of in-orbit testing, will also
provide local channels by satellite to consumers in Alaska and Hawaii. EchoStar VII, together with EchoStar VIII
which is expected to launch this summer, will also improve spectrum efficiency, enhance the quality of video channels
for all DISH Network customers, provide a broader array of programming choices to consumers in Alaska and Hawaii,
and increase in-orbit backup capacity.