Dish Network 2007 Annual Report Download - page 112

Table of Contents
ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued
has been fully depreciated on our books. There can be no assurance that further material degradation, or total loss of use, of EchoStar IV will
not occur in the immediate future.
EchoStar V.
EchoStar V was launched during September 1999 and currently operates at the 129 degree orbital location. The satellite was
originally designed with a minimum 12-year design life. As previously disclosed, momentum wheel failures in prior years, together with
relocation of the satellite between orbital locations, resulted in increased fuel consumption. These issues have not impacted commercial
operation of the satellite, but have reduced the remaining spacecraft life to less than two years as of December 31, 2006. Prior to 2006,
EchoStar V also experienced anomalies resulting in the loss of six solar array strings. During July 2006, the satellite lost an additional solar
array string. The solar array anomalies have not impacted commercial operation of the satellite to date. Since the satellite only has a remaining
life of approximately two years, the solar array failures (which would normally have resulted in a reduction in the number of transponders to
which power can be provided in later years), are not expected to reduce the current remaining life of the satellite. However, there can be no
assurance that future anomalies will not cause further losses which could impact commercial operation, or the remaining life, of the satellite.
See discussion of evaluation of impairment in “ Long-Lived Satellite Assets ” below.
EchoStar VI.
EchoStar VI was launched during July 2000 and is currently stationed at the 110 degree orbital location as an in-orbit spare. The
satellite was originally equipped with 108 solar array strings, approximately 102 of which are required to assure full power availability for the
original minimum 12-year design life of the satellite. Prior to 2006, EchoStar VI experienced anomalies resulting in the loss of 15 solar array
strings. During 2006, two additional solar array strings failed, reducing the number of functional solar array strings to 91. While the design life
of the satellite has not been affected, commercial operability has been reduced. The satellite was designed to operate 32 transponders at
approximately 125 watts per channel, switchable to 16 transponders operating at approximately 225 watts per channel. The power reduction
resulting from the solar array failures limits us to operation of a maximum of 26 transponders in standard power mode, or 13 transponders in
high power mode currently. The number of transponders to which power can be provided is expected to continue to decline in the future at the
rate of approximately one transponder every three years. See discussion of evaluation of impairment in “ Long-Lived Satellite Assets ” below.
EchoStar VII.
EchoStar VII was launched during February 2002 and currently operates at the 119 degree orbital location. During March 2006,
the satellite experienced an anomaly which resulted in the loss of a receiver. Service was quickly restored through a spare receiver. These
receivers process signals sent from our uplink center, for transmission back to earth by the satellite. The design life of the satellite has not been
affected and the anomaly is not expected to result in the loss of other receivers on the satellite. However, there can be no assurance future
anomalies will not cause further receiver losses which could impact the useful life or commercial operation of the satellite. In the event the
spare receiver placed in operation following the March 2006 anomaly also fails, there would be no impact to the satellite’s ability to provide
service to the continental United States (“CONUS”) when operating in CONUS mode. However, we would lose one-fifth of the spot beam
capacity when operating in spot beam mode.
EchoStar VIII.
EchoStar VIII was launched during August 2002 and currently operates at the 110 degree orbital location. The satellite was
designed to operate 32 transponders at approximately 120 watts per channel, switchable to 16 transponders operating at approximately 240
watts per channel. EchoStar VIII also includes spot-beam technology. As previously disclosed, the satellite has experienced several anomalies
since launch, but none have reduced the 12-year estimated useful life of the satellite. However, there can be no assurance that future anomalies
will not cause further losses which could materially impact its commercial operation, or result in a total loss of the satellite.
We depend on EchoStar VIII to provide service to CONUS at least until such time as our EchoStar XI satellite has commenced commercial
operation, which is currently expected during the second half of 2008. AMC-
14, which is expected to commence commercial operation in early
2008, also has the capability to act as a backup for EchoStar VIII and could be launched to the 110 degree orbital location, if necessary. In the
event that EchoStar VIII experienced a total or substantial failure, we could transmit many, but not all, of those channels from other in-orbit
satellites.
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