Dish Network 2007 Annual Report Download - page 19

Table of Contents
networks that will allow them to offer video services bundled with traditional phone and high speed Internet directly to millions of homes. In
addition, telephone companies and other entities are implementing and supporting digital video compression over existing telephone lines
which may allow them to offer video services without having to build a new infrastructure. We also expect to face increasing competition from
content and other providers who distribute video services directly to consumers over the Internet.
With the large increase in the number of consumers with broadband service, a significant amount of video content has become available on the
Internet for users to download and view on their personal computers and other devices. In addition, there are several initiatives by companies to
make it easier to view Internet-based video on television and personal computer screens. We also could face competition from content and
other providers who distribute video services directly to consumers via digital air waves.
Mergers, joint ventures, and alliances among franchise, wireless or private cable television operators, telephone companies and others also may
result in providers capable of offering television services in competition with us.
Impact of High Definition TV
. Although we believe we currently offer consumers a compelling amount of HD programming content, other
multi-channel video providers may be better equipped to increase their HD offerings to respond to increasing consumer demand for this
content. For example, cable companies are able to offer local network channels in HD in more markets than we can, and DirecTV has
announced that it will soon be able to offer over 150 channels of HD programming by satellite. We could be further disadvantaged to the extent
a significant number of local broadcasters begin offering local channels in HD. We may be required to make substantial additional investments
in infrastructure to respond to competitive pressure to deliver additional HD programming, and there can be no assurance that we will be able
to effectively compete with HD program offerings from other video providers.
Competition for Our ETC Business
Through ETC, we compete with a substantial number of foreign and domestic companies, many of which have significantly greater resources,
financial or otherwise, than we have. We expect new competitors to enter this market because of rapidly changing technology. Our ability to
anticipate these technological changes and introduce enhanced products expeditiously will be a significant factor in our ability to remain
competitive. We do not know if we will be able to successfully introduce new products and technologies on a timely basis in order to remain
competitive.
GOVERNMENT REGULATIONS
We are subject to comprehensive regulation by the FCC. We are also regulated by other federal agencies, state and local authorities and the
International Telecommunication Union (“ITU”). Depending upon the circumstances, noncompliance with legislation or regulations
promulgated by these entities could result in suspension or revocation of our licenses or authorizations, the termination or loss of contracts or
the imposition of contractual damages, civil fines or criminal penalties.
The following summary of regulatory developments and legislation is not intended to describe all present and proposed government regulation
and legislation affecting the video programming distribution industry. Government regulations that are currently the subject of judicial or
administrative proceedings, legislative hearings or administrative proposals could change our industry to varying degrees. We cannot predict
either the outcome of these proceedings or any potential impact they might have on the industry or on our operations.
FCC Regulation under the Communications Act
FCC Jurisdiction over our Operations. The Communications Act gives the FCC broad authority to regulate the operations of satellite
companies. Specifically, the Communications Act gives the FCC regulatory jurisdiction over the following areas relating to communications
satellite operations:
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the assignment of satellite radio frequencies and orbital locations;
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licensing of satellites, earth stations, the granting of related authorizations, and evaluation of the fitness of a company to be a licensee;
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approval for the relocation of satellites to different orbital locations or the replacement of an existing satellite with a new satellite;
• ensuring compliance with the terms and conditions of such assignments and authorizations, including required timetables for
construction and operation of satellites and other due diligence requirements;