Dish Network 2003 Annual Report Download - page 11

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6
Digital Video Recording and Interactive Services
We continue to expand our offerings to include interactive services. DISH Network customers can also purchase or
lease receivers with built-in hard disk drives that permit viewers to pause and record live programs without the need
for videotape. We now offer receivers capable of storing up to 180 hours of programming and expect to increase
storage capacity on future receiver models. We also currently offer receivers that provide a wide variety of
innovative interactive television services and applications.
Broadband Strategic Alliances
Since 2002, we have entered into agreements to combine DISH Network satellite television service with the Internet
access capabilities and, in certain instances, the communications services of Earthlink, Qwest Communications
International Inc. and Sprint to offer bundled service packages to consumers.
During July 2003, we announced an agreement with SBC to co-brand our DISH Network service with SBC’s
telephony, high-speed data and other communications services. SBC Communications is marketing the bundled
service, which became available to consumers in early 2004, and is responsible for integrated order-entry, customer
service and billing.
SBC purchases set-top box equipment from us to sell to bundled service customers. SBC also outsources
installation and certain customer service functions to us for a fee. As part of the agreement, SBC will pay us certain
development and implementation fees.
Satellites
Overview of Our Satellites and FCC Authorizations. We presently have nine satellites in geostationary orbit
approximately 22,300 miles above the equator. Each of our satellites has a minimum design life of 12 years and is
equipped to operate as follows:
• EchoStar I and EchoStar II each have 16 transponders that operate at approximately 130 watts of
power.
• Subject to the anomalies described below, EchoStar III and EchoStar IV each have 32
transponders that operate at approximately 120 watts per channel, switchable to 16 transponders
operating at over 230 watts per channel.
• EchoStar V has 32 transponders that operate at approximately 110 watts per channel, switchable to
16 transponders operating at approximately 220 watts per channel.
• Each of EchoStar VI, EchoStar VII and EchoStar VIII has 32 transponders that operate at
approximately 120 watts per channel, switchable to 16 transponders operating at approximately
240 watts per channel. EchoStar VII and EchoStar VIII also include spot-beam technology. The
use of spot-beams on EchoStar VII and EchoStar VIII enables us to increase the number of
markets where we provide local channels, but reduces the number of video channels that could
otherwise be offered across the entire United States. Each transponder can transmit multiple
digital video, audio and data channels.
• EchoStar IX, which commenced operations at the 121 degree location during October 2003, has 32
Ku-band transponders that operate at approximately 110 watts per channel, in addition to a Ka-
band payload. EchoStar IX provides expanded video and audio channels to DISH Network
subscribers who install a specially-designed dish. The Ka-band spectrum is being used to test and
verify potential future broadband initiatives and to initiate those services.