Dish Network 2015 Annual Report Download - page 11

1
PART I
Item 1. BUSINESS
OVERVIEW
DISH Network Corporation was organized in 1995 as a corporation under the laws of the State of Nevada. We started
offering the DISH® branded pay-TV service in March 1996 and are the nation’s third largest pay-TV provider. Our
common stock is publicly traded on the Nasdaq Global Select Market under the symbol “DISH.” Our principal
executive offices are located at 9601 South Meridian Boulevard, Englewood, Colorado 80112 and our telephone number
is [phone].
DISH Network Corporation is a holding company. Its subsidiaries (which together with DISH Network Corporation are
referred to as “DISH Network,” the “Company,” “we,” “us” and/or “our,” unless otherwise required by the context)
operate two primary business segments.
DISH
We offer pay-TV services under the DISH® brand and the Sling® brand (collectively “Pay-TV” services). The DISH
branded pay-TV service consists of, among other things, Federal Communications Commission (“FCC”) licenses
authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and
leased satellites, receiver systems, third-party broadcast operations, customer service facilities, a leased fiber optic
network, in-home service and call center operations, and certain other assets utilized in our operations. The Sling
branded pay-TV services consist of, among other things, live, linear streaming over-the-top (“OTT”) Internet-based
domestic, international and Latino video programming services (“Sling TV”). Prior to 2015, we launched our Sling
International video programming service (formerly known as DishWorld), which historically represented a small
percentage of our Pay-TV subscribers. During 2015, we launched our Sling domestic and Sling Latino services. All
Sling TV subscribers are included in our Pay-TV subscriber count. As of December 31, 2015, we had 13.897 million
Pay-TV subscribers in the United States.
In addition, we market broadband services under the dishNET™ brand, which had 0.623 million subscribers in the
United States as of December 31, 2015. Our satellite broadband service utilizes advanced technology and high-powered
satellites launched by Hughes Communications, Inc. (“Hughes”) and ViaSat, Inc. (“ViaSat”) to provide broadband
coverage nationwide. This service primarily targets rural residents that are underserved, or unserved, by wireline
broadband. In addition to the dishNET branded satellite broadband service, we also offer wireline voice and broadband
services under the dishNET brand as a competitive local exchange carrier to consumers living in a 14-state region in the
western United States. We primarily bundle our dishNET branded services with our DISH branded pay-TV service.
Wireless
DISH Network Spectrum
We have invested over $5.0 billion since 2008 to acquire certain wireless spectrum licenses and related assets. These
wireless spectrum licenses are subject to certain interim and final build-out requirements. As we consider 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. For example, on February 10, 2016, we filed an
application with the FCC to potentially participate as a bidder in the upcoming broadcast television spectrum incentive
auction (“Auction 1000”). Auction 1000 is scheduled to begin on March 29, 2016. The FCC determined that bidding in
Auction 1000 will be “anonymous,” which means that prior to and during the course of the auction, the FCC will not
make public any information about a specific applicant’s upfront deposits or its bids. In addition, FCC rules restrict
information that bidders may disclose about their participation in Auction 1000. See Note 15 “Commitments and
Contingencies — Wireless — DISH Network Spectrum” in the Notes to our Consolidated Financial Statements in this
Annual Report on Form 10-K for further information.