Dish Network 2011 Annual Report Download - page 15

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Customer Retention
We incur significant costs to retain our existing customers, mostly by upgrading their equipment to HD and DVR
receivers. As with our subscriber acquisition costs, our retention upgrade spending includes the cost of equipment
and installation. In certain circumstances, we also offer programming at no additional charge and/or promotional
pricing for limited periods for existing customers in exchange for a contractual commitment. A component of our
retention efforts includes the installation of equipment for customers who move. Our subscriber retention costs may
vary significantly from period to period.
Customer Service
Customer Service Centers. We use both internally-operated and outsourced customer service centers to handle calls
from prospective and existing customers. We strive to answer customer calls promptly and to resolve issues
effectively on the first call. We intend to better use the Internet and other applications to provide our customers with
more self-service capabilities over time.
Installation and Other In-Home Service Operations. High-quality installations, upgrades, and in-home repairs are
critical to providing good customer service. Such in-home service is performed by both DISH employees and a
network of independent contractors and includes, among other things, priority technical support, replacement
equipment, cabling and power surge repairs for a monthly fee.
Subscriber Management. We presently use, and depend on, CSG Systems International, Inc.’s (“CSG”) software
system for the majority of DISH subscriber billing and related functions. During 2011, we implemented new
interactive voice response and in-home appointment scheduling systems. Also during 2011, we began developing
and testing a new CSG billing system as well as new sales and customer care systems that are likely to be
implemented in 2012.
New Business Opportunities
From time to time we evaluate opportunities for strategic investments or acquisitions that may complement our
current services and products, enhance our technical capabilities, improve or sustain our competitive position, or
otherwise offer growth opportunities. We may make investments in or partner with others to expand our business
into mobile and portable video, data and voice services.
We are currently promoting a suite of integrated products designed to maximize the convenience and ease of
watching TV anytime and anywhere, which we refer to as TV Everywhere which utilizes, among other things,
online access and Slingbox “placeshifting” technology. There can be no assurance that these integrated products will
positively affect our results of operations or our gross new subscriber activations.
Blockbuster
On April 26, 2011, we completed the Blockbuster Acquisition. We acquired Blockbuster operations in the United
States and in certain foreign countries. Blockbuster primarily offers movies and video games for sale and rental
through multiple distribution channels such as retail stores, by-mail, digital devices, the blockbuster.com website
and the BLOCKBUSTER On Demand service. The Blockbuster Acquisition complements our core business of
delivering high-quality video entertainment to consumers. We are promoting our new Blockbuster offerings
including Blockbuster@Home which provides movies, games and TV shows through Internet streaming, mail and
in-store exchanges and online. This offering is only available to DISH subscribers.
Spectrum Investments
In 2008, we paid $712 million to acquire certain 700 MHz wireless licenses, which were granted to us by the FCC in
February 2009. Part or all of these licenses may be terminated if the associated FCC build-out requirements are not
satisfied.