Dish Network 2005 Annual Report Download - page 16

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6
We are also trying to use our large internal engineering design group to create new business opportunities both
domestically and abroad, including working on the delivery of video over the Internet, mobile video delivery and
other initiatives. In addition, we believe that we can utilize our engineering expertise to enable our wholesale
commercial FSS business to offer integrated satellite capacity solutions that may not be available from other
providers of wholesale commercial satellite capacity.
NEW BUSINESS OPPORTUNITIES
Strategic Investments in International Projects
We have entered into agreements to construct and launch an S-band satellite and lease the transponder capacity of
that satellite to an affiliate of a Chinese regulatory entity to support the development of satellite-delivered mobile
video services in China. We also recently completed an investment in TU Media Corp., a Korean provider of
satellite-delivered mobile video services, and we are currently evaluating strategic development opportunities in
several other international markets.
These transactions are part of our strategy to expand our business internationally and support the development of
new satellite-delivered services, such as mobile video services. The expertise we obtain through these projects may
also help us to improve and expand our U.S. business. However, these international projects involve a high degree
of risk, including, among other things, the risks that required regulatory approvals and other conditions may not be
obtained or satisfied, that we may not be able to enter into necessary distribution and other relationships, and that the
companies in which we invest or with whom we partner may not be able to compete effectively in these markets or
that there may be insufficient demand for the new services planned for these markets.
We may increase our strategic international investments in the future.
Acquisition of Spectrum for New Services
During February 2007, we began participating in an FCC Auction for licenses in the 1.4 GHz band. Through
February 26, 2007, we were the provisional winning bidder for licenses totaling approximately $52.0 million and we
may continue to bid on the licenses available in the Auction through its conclusion. We are currently evaluating
commercial uses for this spectrum. While its propagation characteristics are attractive, the small amount of
spectrum limits its potential commercial use. Even if these licenses are awarded to us, there can be no assurance
that we will be able to exploit these licenses or that we could raise all capital required to develop these licenses.
Development of Fixed Satellite Services Business
We continue to focus on improving our competitive position and growing our business by leveraging our satellite
and engineering capacity to pursue complementary strategic initiatives. These initiatives include expanding into
provision of wholesale commercial fixed satellite services to provide customers with end-to-end solutions and a
reliable platform to distribute video and data throughout the United States and internationally.