Dish Network 2004 Annual Report Download - page 102

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
EchoStar III
EchoStar III currently operates at the 61.5 degree orbital location. During January 2004, a TWTA pair on this
satellite failed, resulting in a loss of service on one of our licensed transponders. An additional TWTA pair failed in
March 2004. Including the seven TWTA pairs that malfunctioned in prior years, these anomalies have resulted in
the failure of a total of 18 TWTAs on the satellite to date. While originally designed to operate a maximum of 32
transponders at approximately 120 watts per channel, switchable to 16 transponders operating at over 230 watts per
channel, the satellite was equipped with a total of 44 TWTAs to provide redundancy. EchoStar III can now operate
a maximum of 26 transponders, but due to redundancy switching limitations and specific channel authorizations it
currently can only operate on 18 of the 19 FCC authorized frequencies we utilize at the 61.5 degree west orbital
location. While we don’t expect a large number of additional TWTAs to fail in any year, it is likely that additional
TWTA failures will occur from time to time in the future, and that those failures will further impact commercial
operation of the satellite. We will continue to evaluate the performance of EchoStar III as new events or changes in
circumstances become known.
EchoStar IV
EchoStar IV is currently located at the 157 degree orbital location. Prior to 2004, this satellite experienced failures
with the deployment of its solar arrays and with 38 of its 44 transponders (including spares), and further experienced
anomalies affecting its thermal systems and propulsion systems. Several years ago, we filed a $219.3 million insurance
claim for a total loss under the launch insurance policies covering this satellite. On March 4, 2005, we agreed to settle
this claim (Note 9). On September 4, 2004, the south solar array on EchoStar IV deployed fully and appears to be
producing nominal current. There can be no assurance that further material degradation, or total loss of use, of
EchoStar IV will not occur in the immediate future. As of December 31, 2003, EchoStar IV was fully depreciated.
EchoStar V
EchoStar V is currently located at the 119 degree orbital location. This satellite is equipped with a total of 96 solar
array strings, 92 of which are required to assure full power availability for the 12-year design life of the satellite.
Prior to 2004, EchoStar V experienced anomalies resulting in the loss of 4 solar array strings. During March 2004,
EchoStar V lost an additional solar array string, reducing solar array power to approximately 95% of its original
capacity. While originally designed to operate a maximum of 32 transponders at approximately 110 watts per
channel, switchable to 16 transponders operating at approximately 220 watts per channel, the solar array anomalies
may prevent the use of some of those transponders for the full 12-year design life of the satellite. In addition,
momentum wheel anomalies previously experienced resulted in more rapid use of fuel and a corresponding minor
reduction of spacecraft life. An investigation of the anomalies is continuing. Until the root causes are finally
determined, there can be no assurance that future anomalies will not cause further losses which could impact
commercial operation of the satellite. EchoStar V is not currently carrying any traffic and is being utilized as an in-
orbit spare. We will continue to evaluate the performance of EchoStar V as new events or changes in circumstances
become known. Increased fuel use resulting from commercial operation of the spacecraft or other events and
circumstances would require us to reduce the remaining depreciable life of EchoStar V.
EchoStar VI
EchoStar VI currently operates at the 110 degree orbital location. This satellite has 32 transponders that operate at
approximately 120 watts per channel, switchable to 16 transponders operating at approximately 240 watts per
channel. The satellite has a total of approximately 112 solar array strings and approximately 106 are required to
assure full power availability for the estimated 12-year design life of the satellite. Prior to 2004, EchoStar VI lost a
total of 3 solar array strings. During April 2004 and again in July 2004, EchoStar VI experienced anomalies
resulting in the loss of two additional solar array strings, bringing the total number of string losses to five. An
investigation of the solar array anomalies, none of which have impacted commercial operation of the satellite or are
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