Dish Network 2007 Annual Report Download - page 15

Table of Contents
per channel, switchable to 16 transponders operating at over 230 watts per channel, and was equipped with a total of 44 transponders to provide
redundancy. Prior to 2006, TWTA anomalies caused 22 transponders to fail. During April and October 2006, further TWTA anomalies caused
the failure of four additional transponders. As a result, a maximum of 18 transponders are currently available for use on EchoStar III, but due to
redundancy switching limitations and specific channel authorizations, we can only operate 15 of the 19 FCC authorized frequencies we have
the right to utilize at the 61.5 degree location. While we do not expect a large number of additional TWTAs to fail in any year, and the failures
have not reduced the original minimum 12-year design life of the satellite, it is likely that additional TWTA failures will occur from time to
time in the future, and those failures will further impact commercial operation of the satellite.
EchoStar IV
. EchoStar IV was launched during May 1998 and currently operates at the 77 degree orbital location, which is licensed by the
government of Mexico to a venture in which we hold a minority interest. The satellite was 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. As a result of past
TWTA failures, only six transponders are currently available for use and the satellite 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 ”
in Note 4 in the Notes to the Consolidated Financial Statements in
Item 15 of this Annual Report on Form 10-K.
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 ” in Note
4 in the Notes to the Consolidated Financial Statements in Item 15 of this Annual Report on Form 10-K.
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.
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