Dish Network 2007 Annual Report Download - page 52

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Table of Contents
equal to the retail price of our most widely distributed programming package, America’s Top 100 (but taking into account, periodically, price
changes and other factors), and include the resulting number, which is substantially smaller than the actual number of commercial units served,
in our DISH Network subscriber count.
During April 2004, we acquired a C-band subscription television service business, the assets of which primarily consist of acquired customer
relationships. Although we are converting some of these customer relationships from C-band subscription television services to our DISH
Network DBS subscription television service, acquired C
-band subscribers are not included in our DISH Network subscriber count unless they
have also subscribed to our DISH Network DBS television service.
Monthly average revenue per subscriber (
“ARPU”) . We are not aware of any uniform standards for calculating ARPU and believe
presentations of ARPU may not be calculated consistently by other companies in the same or similar businesses. We calculate average monthly
revenue per subscriber, or ARPU, by dividing average monthly “Subscriber-related revenues” for the period (total “Subscriber-related revenue”
during the period divided by the number of months in the period) by our average DISH Network subscribers for the period. Average DISH
Network subscribers are calculated for the period by adding the average DISH Network subscribers for each month and dividing by the number
of months in the period. Average DISH Network subscribers for each month are calculated by adding the beginning and ending DISH Network
subscribers for the month and dividing by two.
Subscriber churn rate/subscriber turnover
. We are not aware of any uniform standards for calculating subscriber churn rate and believe
presentations of subscriber churn rates may not be calculated consistently by different companies in the same or similar businesses. We
calculate percentage monthly subscriber churn by dividing the number of DISH Network subscribers who terminate service during each month
by total DISH Network subscribers as of the beginning of that month. We calculate average subscriber churn rate for any period by dividing the
number of DISH Network subscribers who terminated service during that period by the average number of DISH Network subscribers subject
to churn during the period, and further dividing by the number of months in the period. Average DISH Network subscribers subject to churn
during the period are calculated by adding the DISH Network subscribers as of the beginning of each month in the period and dividing by the
total number of months in the period.
Free cash flow . We define free cash flow as “Net cash flows from operating activities” less “Purchases of property and equipment,” as shown
on our Condensed Consolidated Statements of Cash Flows.
44
Item 7.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS —
Continued