Dish Network 2004 Annual Report Download - page 87

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Organization and Business Activities
Principal Business
EchoStar Communications Corporation (“ECC”) is a holding company. Its subsidiaries (which together with ECC
are referred to as “EchoStar,” the “Company,” “we,” “us” and/or “our”) operate two interrelated business units:
• The DISH Network – which provides a direct broadcast satellite (“DBS”) subscription television service 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 Federal Communications Commission (“FCC”) allocated DBS spectrum, our owned and
leased satellites, EchoStar receiver systems, digital broadcast operations centers, customer service facilities, and
certain 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,
2004:
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 L.L.C................................................................... ESLLC EDBS
Echosphere L.L.C............................................................................. Echosphere EDBS
EchoStar Technologies Corporation ................................................ ETC EDBS
DISH Network Service L.L.C........................................................... DNSLLC EDBS
As of December 31, 2004, 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, EchoStar XI and our Ka-band
satellites are held in EOC II, a sister company to EDBS. Our satellite lease contracts are also held by a direct
subsidiary of EDBS. Substantially all of our operations are conducted by subsidiaries of EDBS.
F–7