Dish Network 2009 Annual Report Download - page 16

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6
Satellite Capacity Leased from/to EchoStar
In connection with the Spin-off and subsequent to the Spin-off, we entered into certain satellite capacity agreements
pursuant to which we lease certain satellite capacity on certain satellites owned or leased by EchoStar. In December
2009, we entered into a satellite capacity agreement pursuant to which EchoStar leases satellite capacity on a certain
satellite owned by us. The fees for the services provided under these satellite capacity agreements depend, among
other things, upon the orbital location of the applicable satellite and the frequency on which the applicable satellite
provides services. The term of each of the leases is set forth below:
EchoStar III, VI, VIII, and XII. We lease certain satellite capacity from EchoStar on EchoStar III, VI, VIII, and
XII. The leases generally terminate upon the earlier of: (i) the end of the life or the replacement of the satellite
(unless we determine to renew on a year-to-year basis); (ii) the date the satellite fails; (iii) the date the
transponder on which service is being provided fails; or (iv) a certain date, which depends upon, among other
things, the estimated useful life of the satellite, whether the replacement satellite fails at launch or in orbit prior
to being placed in service, and the exercise of certain renewal options. We generally have the option to renew
each lease on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance
that any options to renew such agreements will be exercised.
EchoStar I. EchoStar leases certain satellite capacity from us on EchoStar I. The lease generally terminates
upon the earlier of: (i) the end of the life or the replacement of the satellite (unless EchoStar determines to
renew on a year-to-year basis); (ii) the date the satellite fails; (iii) the date the transponder on which service is
being provided fails; or (iv) a certain date, which depends upon, among other things, the estimated useful life of
the satellite, whether the replacement satellite fails at launch or in orbit prior to being placed in service, and the
exercise of certain renewal options. EchoStar generally has the option to renew this lease on a year-to-year
basis through the end of the satellite’s life. There can be no assurance that any options to renew this agreement
will be exercised.
Nimiq 5. During September 2009, we entered into a ten-year satellite service agreement with EchoStar for capacity
on the Nimiq 5 satellite. Pursuant to this agreement, we will receive service from EchoStar on all 32 of the DBS
transponders covered by the transponder contract with Telesat Canada (“Telesat”). We began receiving service on
16 of these DBS transponders upon service commencement of the satellite and will receive service on the remaining
16 DBS transponders over a phase-in period that will be completed in 2012.
Satellite Capacity Leased from Other Third Parties
x Anik F3. Anik F3, an FSS satellite, is equipped with 32 Ku-band transponders, 24 C-band transponders and
a small Ka-band payload. We have leased 100% of the Ku-band capacity on Anik F3 for a period of 15
years.
x Ciel II. Ciel II, a Canadian DBS satellite, has both spot beam capabilities and the ability to provide service
to the entire continental United States (“CONUS”). We have leased 100% of the capacity on Ciel II for a
period of ten years.