Dish Network 2014 Annual Report Download - page 68

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - Continued
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home DVR promotes a suite of integrated features and functionality designed to maximize the convenience and ease of
watching TV anytime and anywhere. It also has several innovative features that a consumer can use, at his or her
option, to watch and record television programming, including recording up to eight shows at a time, through Internet-
connected tablets, smartphones and computers. During January 2015, we announced certain upcoming technological
advancements including 4K Ultra HD capable receivers, a new remote control and user interface with advanced voice
command capability, and more mobile applications. There can be no assurance that these integrated features and
functionality will positively affect our results of operations or our gross new Pay-TV subscriber activations.
In addition, we bundle broadband and telephone services with our pay-TV services. As of December 31, 2014, we had
0.577 million broadband subscribers in the United States. Connecting our subscribers’ receivers to broadband service
enhances the video experience and facilitates access to DISH programming services on mobile devices. During 2012,
we began marketing our wireline and satellite broadband services under the dishNET brand. Our dishNET satellite
broadband service primarily targets rural residents that are underserved, or unserved, by wireline broadband, and
provides download speeds of up to 15 Mbps and our dishNET branded wireline broadband service provides download
speeds of up to 20 Mbps.
Over-the-top television
On February 9, 2015, we launched Sling TV, a live, linear streaming OTT service. At launch, the core package
consisted of over 14 channels offered for a $20 monthly subscription. In addition to the core programming package,
Sling TV offers additional tiers of programming, including news and children’s programming, each for an additional
monthly fee, as well as a video on-demand programming library. We expect to expand the programming content
offered by Sling TV during 2015. Sling TV requires an Internet connection and is available through certain
streaming-capable devices.
Prior to the launch of Sling TV, we offered, and continue to offer, an international video programming OTT service
to a small number of Pay-TV subscribers under the DishWorld brand. As of December 31, 2014, our DishWorld
subscribers are included in our Pay-TV subscriber count and represent a small percentage of our customers. We
market our OTT services primarily to consumers who do not subscribe to traditional satellite and cable pay-TV
services.
Wireless
DISH Spectrum. We have invested over $5.0 billion since 2008 to acquire certain wireless spectrum licenses and
related assets. We may also determine that additional wireless spectrum licenses may be required to commercialize
our wireless business and to compete with other wireless service providers. We will need to make significant
additional investments or partner with others to, among other things, commercialize, build-out, and integrate these
licenses and related assets, and any additional acquired licenses and related assets; and comply with regulations
applicable to such licenses. Depending on the nature and scope of such commercialization, build-out, integration
efforts, and regulatory compliance, any such investments or partnerships could vary significantly. In addition, as we
review our options for the commercialization of our wireless spectrum, we may incur significant additional expenses
and may have to make significant investments related to, among other things, research and development, wireless
testing and wireless network infrastructure, as well as the acquisition of additional wireless spectrum. We may need
to raise significant additional capital in the future to fund these efforts, which may not be available on acceptable
terms or at all. There can be no assurance that we will be able to develop and implement a business model that will
realize a return on these wireless spectrum licenses or that we will be able to profitably deploy the assets represented
by these wireless spectrum licenses, which may affect the carrying value of these assets and our future financial
condition or results of operations. See Note 16 “Commitments and Contingencies – Wireless Spectrum” in the Notes
to our Consolidated Financial Statements in this Annual Report on Form 10-K for further discussion.
AWS-3 Auction. On February 13, 2015, Northstar Wireless and SNR Wireless each filed applications with the FCC
to acquire certain AWS-3 Licenses that were made available in the auction designated by the FCC as the AWS-3
Auction for which it was named as winning bidder and had made the required down payments. Issuance of any
AWS-3 licenses to Northstar Wireless or SNR Wireless depends, among other things, upon the FCC’s review and
approval of the applications filed by Northstar Wireless and SNR Wireless. We cannot predict the timing or the
outcome of the FCC’s review of those applications. We own an 85% non-controlling interest in each of Northstar