Dish Network 2002 Annual Report Download - page 4

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PART I
Item 1. BUSINESS
OVERVIEW
Our Business
Echostar Communications Corporation, through its DISH Network, is a leading provider of satellite
delivered digital television entertainment services to customers across the United States. DISH Network provides
advanced digital satellite television services, including hundreds of video, audio and data channels, interactive
television channels, personal video recording, high definition television, international programming, professional
installation and 24-hour customer service.
We started offering subscription television services on the DISH Network in March 1996. As of
December 31, 2002, the DISH Network had approximately 8.18 million subscribers. We now have eight direct
broadcast satellites in operation that enable us to offer over 500 video and audio channels to consumers across the
United States. We believe that the DISH Network offers programming packages that have a better “price-to-value”
relationship than packages currently offered by most other subscription television providers. As of December 31,
2002, there were over 19 million subscribers to direct broadcast satellite and other direct-to-home satellite services
in the United States. We believe that there are more than 89 million total pay television subscribers in the United
States, and there continues to be significant unsatisfied demand for high quality, reasonably priced television
programming services.
DISH Network and EchoStar Technologies Corporation
We conduct substantially all of our operations through our subsidiaries and operate two principal business
units:
• The DISH Network — which provides a direct broadcast satellite subscription television service
we refer to as “DBS” in the United States: and
• EchoStar Technologies Corporation — which designs and develops DBS set-top boxes, antennae
and other digital equipment for the DISH Network. We refer to this equipment collectively as
“EchoStar receiver systems.” EchoStar Technologies Corporation also designs, develops and
distributes similar equipment for international satellite service providers.
Other Information
Our common stock is publicly traded on the Nasdaq National Market under the symbol “DISH”. Our
principal executive offices are located at 5701 South Santa Fe Drive, Littleton, Colorado 80120 and our telephone
number is [phone]. Our filings with the Securities and Exchange Commission are accessible free of charge
at our website www.echostar.com.
Recent Developments
Redemption of the 9 ¼% Seven Year Notes. Effective February 1, 2003, EDBS redeemed all of its
outstanding 9 1/4 % Senior Notes due 2006. In accordance with the terms of the indenture governing the notes, the
$375 million principal amount of the notes was repurchased at 104.625 percent, for a total of approximately
$392 million. The premium paid of approximately $17 million, along with unamortized debt issuance costs of
approximately $3 million, have been recorded as charges to earnings as of February 1, 2003.
Termination of the Proposed Merger with Hughes. On December 9, 2002 we reached a termination,
settlement and release agreement with General Motors and Hughes Electronic Corporation to terminate our
proposed merger with Hughes. For more information please see Note 1 in Notes to the Consolidated Financial
Statements. Under the terms of the settlement, Hughes retained its 81% ownership interest in PanAmSat, which we