Dish Network 2015 Annual Report Download - page 17

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may be limited as technological advances and consumer demand for new features may render the returned equipment
obsolete.
Installation Services. We incur significant upfront costs to install satellite dishes and receivers in the homes of our new
DISH branded pay-TV subscribers.
New Customer Promotions. We often offer programming at no additional charge and/or promotional pricing during
introductory periods for new subscribers. While such promotional activities have an economic cost and reduce our
subscriber-related revenue, they are not included in our definitions of subscriber acquisition costs or the Pay-TV SAC
metric.
Customer Retention
We incur significant costs to retain our existing DISH branded pay-TV customers, mostly by upgrading their equipment
to HD and DVR receivers and by providing retention credits. As with our subscriber acquisition costs, our retention
upgrade spending includes the cost of equipment and installation services. 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 to receive service for a minimum term. A component of our retention efforts includes the
re-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 also use the Internet and other applications to provide our customers with self-service capabilities.
Installation and Other In-Home Service Operations. High-quality installations, upgrades, and in-home repairs are
critical to providing DISH branded pay-TV subscribers quality customer service. Such in-home service is performed by
both DISH Network employees and a network of independent contractors and includes, among other things, priority
technical support, replacement equipment, cabling and power surge repairs.
Subscriber Management. We presently use, and depend on, software systems for subscriber billing and related
functions, including, among others, CSG Systems International, Inc.’s software system used for the DISH branded pay-
TV and broadband services.
Relationship with EchoStar
On January 1, 2008, we completed the distribution of our technology and set-top box business and certain infrastructure
assets (the “Spin-off”) into a separate publicly-traded company, EchoStar. DISH Network and EchoStar operate as
separate publicly-traded companies and, except for the Satellite and Tracking Stock Transaction and Sling TV Holding
L.L.C. (“Sling TV Holding”) discussed in Note 19 in the Notes to our Consolidated Financial Statements in this Annual
Report on Form 10-K, neither entity has any ownership interest in the other. However, a substantial majority of the
voting power of the shares of both DISH Network and EchoStar is owned beneficially by Charles W. Ergen, our
Chairman and Chief Executive Officer, and by certain trusts established by Mr. Ergen for the benefit of his family.
EchoStar is our primary supplier of digital set-top boxes and digital broadcast operations. In addition, EchoStar provides
the vast majority of our transponder capacity, is a key supplier of related services to us, and provides the streaming
delivery technology and infrastructure for our Sling TV services. Furthermore, Hughes, a subsidiary of EchoStar,
provides us with satellite broadband Internet services on a wholesale basis, which we then distribute under our
dishNET™ brand. See “Item 1A. Risk Factors” and Note 19 in the Notes to our Consolidated Financial Statements in
this Annual Report on Form 10-K for more information.