Dish Network 2015 Annual Report Download - page 112

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-8
1. Organization and Business Activities
Principal Business
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 for further information.