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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F–8
1. Organization and Business Activities
Principal Business
The operations of EchoStar Communications Corporation (“ECC,” and together with its subsidiaries, “EchoStar,”
the “Company,” “we,” “us,” and/or “our”) include two interrelated 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 (“ETC”) – 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.” ETC also designs, develops and distributes similar equipment for international satellite
service providers.
Since 1994, we have deployed substantial resources to develop the “EchoStar DBS System.” The EchoStar DBS
System consists of our FCC-allocated DBS spectrum, nine in-orbit satellites (“EchoStar I” through “EchoStar IX”),
EchoStar receiver systems, digital broadcast operations centers, customer service facilities, and other assets utilized
in our operations. Our principal business strategy is to continue developing our subscription television service in
the United States to provide consumers with a fully competitive alternative to cable television service.
Organization and Legal Structure
The following table summarizes our organizational structure and our principal subsidiaries as of December 31,
2003:
Referred to
Legal Entity Herein As Parent
EchoStar Communications Corporation............................................ ECC Publicly owned
EchoStar Orbital Corporation .......................................................... EOC ECC
EchoStar Orbital Corporation II ...................................................... EOC II EOC
EchoStar DBS Corporation............................................................... EDBS EOC
EchoStar Satellite LLC..................................................................... ESLLC EDBS
Echosphere LLC............................................................................... Echosphere EDBS
EchoStar Technologies Corporation ................................................ ETC EDBS
DISH Network Service LLC............................................................. DNSLLC EDBS
As of December 31, 2003, all of our DBS FCC licenses and nine of our in-orbit satellites were owned by a direct
subsidiary of EDBS. Contracts for the construction and launch of EchoStar X are held in EchoStar Orbital
Corporation II, a sister company to EDBS. Substantially all of our operations are conducted by subsidiaries of
EDBS.
Significant Risks and Uncertainties
Substantial Leverage. We are highly leveraged, which makes us vulnerable to changes in general economic
conditions. As of December 31, 2003, we had outstanding long-term debt (including both the current and long-term
portions) totaling approximately $6.938 billion. We have quarterly and semi-annual cash, debt service obligations
for all of our outstanding long-term debt securities, as follows: