Dish Network 2015 Annual Report Download - page 12

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DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless
Spectrum Licenses
Through our wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3
Wireless III L.L.C. (“American III”), we have made over $10.0 billion in certain non-controlling investments
in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, LLC (“Northstar
Wireless,” and collectively with Northstar Spectrum, the “Northstar Entities”), and in SNR Wireless HoldCo, LLC
(“SNR HoldCo”), the parent company of SNR Wireless LicenseCo, LLC (“SNR Wireless,” and collectively with SNR
HoldCo, the “SNR Entities”), respectively. On October 27, 2015, the FCC granted certain AWS-3 wireless spectrum
licenses (the “AWS-3 Licenses”) to Northstar Wireless and to SNR Wireless, respectively, which are recorded in “FCC
authorizations” on our Consolidated Balance Sheets. Under the applicable accounting guidance in Accounting Standards
Codification 810, Consolidation (“ASC 810”), Northstar Spectrum and SNR HoldCo are considered variable interest
entities and, based on the characteristics of the structure of these entities and in accordance with the applicable
accounting guidance, we have consolidated these entities into our financial statements beginning in the fourth quarter
2014. See Note 2 in the Notes to our Consolidated Financial Statements in this Annual Report on Form 10-K for further
information.
The AWS-3 Licenses are subject to certain interim and final build-out requirements. We may need to make significant
additional loans to the Northstar Entities and to the SNR Entities, or they may need to partner with others, so that the
Northstar Entities and the SNR Entities may commercialize, build-out and integrate these AWS-3 Licenses, and comply
with regulations applicable to such AWS-3 Licenses. Depending upon the nature and scope of such commercialization,
build-out, integration efforts, and regulatory compliance, any such loans or partnerships could vary significantly. There
can be no assurance that we will be able to obtain a profitable return on our non-controlling investments in the Northstar
Entities and the SNR Entities.
See Note 15 “Commitments and Contingencies — Wireless — DISH Network Non-Controlling Investments in the
Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses” in the Notes to our Consolidated
Financial Statements in this Annual Report on Form 10-K for further information.
Business Strategy
Our business strategy is to be the best provider of video services in the United States by providing products with the best
technology, outstanding customer service, and great value. We promote DISH branded programming packages as
providing our subscribers with a better “price-to-value” relationship than those available from other subscription
television service providers. We believe that there continues to be unsatisfied demand for high-quality, reasonably
priced subscription television services.
x Products with the Best Technology. We offer a wide selection of local and national high-definition (“HD”)
programming and are a technology leader in our industry, offering award-winning DVRs (including our
Hopper® whole-home HD DVR), multiple tuner receivers, 1080p video on demand, and external hard drives.
In addition, during 2015, we launched our Sling domestic and Sling Latino services.
x Outstanding Customer Service. We strive to provide outstanding customer service by improving the quality of
the initial installation of subscriber equipment, improving the reliability of our equipment, better educating our
customers about our products and services, and resolving customer problems promptly and effectively when
they arise.
x Great Value. We have historically been viewed as the low-cost provider in the pay-TV industry in the U.S.
because we seek to offer the lowest everyday prices available to consumers after introductory promotions
expire.