Dish Network 2009 Annual Report Download - page 23

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In addition, affiliates of certain cable providers have denied us access to sports programming they feed to their cable
systems terrestrially, rather than by satellite. The FCC recently held that new denials of such service are unfair if
they have the purpose or effect of significantly hindering us from providing programming to consumers. However,
we cannot be sure that we can make that showing, prevail in a complaint related to such programming, and gain
access to it. Our continuing failure to access such programming could materially and adversely affect our ability to
compete in regions serviced by these cable providers.
MDU Exclusivity. The FCC has found that cable companies should not be permitted to have exclusive relationships
with multiple dwelling units (e.g., apartment buildings). In May 2009, the D.C. Circuit upheld the FCC’s decision.
The FCC has now asked whether DBS and Private Cable Operators (“PCOs”) should be prohibited from having
similar relationships with multiple dwelling units. If the cable exclusivity ban were to be extended to DBS
providers, our ability to serve these types of buildings and communities would be adversely affected. We cannot
predict the timing or outcome of the FCC’s consideration of this proposal.
Net Neutrality and the National Broadband Plan. The FCC has initiated a proceeding where it has proposed
certain rules to safeguard the open nature of the Internet, including requirements of nondiscrimination and
transparency with respect to network management practices. The FCC is also currently developing a national
broadband plan to expand availability of broadband and encourage adoption of that service. We cannot be sure
whether these initiatives will result in burdens on us such as the need to use our satellite capacity to comply with any
additional mandates, or contribution obligations.
Comcast/NBC Universal Transaction. Comcast and General Electric have agreed to join their programming
properties, including NBC, Bravo and many others, in a venture to be controlled by Comcast. The transaction will
require FCC and other governmental approvals before it can be completed. This transaction may affect us adversely
by, among other things, making it more difficult for us to obtain access to the programming networks on
nondiscriminatory and fair terms, or at all. We cannot predict when or if the transaction will receive the requisite
regulatory approvals or if it will be appropriately conditioned to mitigate potential public interest harms.
The International Telecommunication Union
Our DBS system also must conform to the ITU broadcasting satellite service plan for Region 2 (which includes the
United States). If any of our operations are not consistent with this plan, the ITU will only provide authorization on
a non-interference basis pending successful modification of the plan or the agreement of all affected administrations
to the non-conforming operations. Accordingly, unless and until the ITU modifies its broadcasting satellite service
plan to include the technical parameters of DBS applicants’ operations, our satellites, along with those of other DBS
operators, must not cause harmful electrical interference with other assignments that are in conformance with the
plan. Further, DBS satellites are not presently entitled to any protection from other satellites that are in conformance
with the plan.
Export Control Regulation
The delivery of satellites and related technical information for the purpose of launch by foreign launch services
providers is subject to strict export control and prior approval requirements.
Broadband Service Regulation
The American Recovery and Reinvestment Act of 2009 (“ARRA”) has allocated $7.2 billion to expand access to
broadband services. Of this amount, $2.5 billion is administered by the Rural Utilities Service (“RUS”) for
deployment of broadband projects in rural, unserved and underserved communities across the United States and $4.7
billion has been allocated to the National Telecommunications and Information Administration (“NTIA”) of the
United States Department of Commerce to fund broadband initiatives throughout the U.S, including unserved and
underserved areas. Our application for broadband stimulus funds in the first round was not granted. The agencies
have announced a second round of funding that will total several billion dollars. This will include a set-aside of a
minimum of $100 million for satellite projects. We are currently evaluating whether to submit an application for
funding and we cannot be sure if any such application will be granted, or that it will be granted on acceptable terms.
If our application is granted and we accept the terms of such grant, we may become subject to certain regulations
promulgated by the agencies.