Dish Network 2015 Annual Report Download - page 39

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operations, interrupt our services and damage our reputation, thus adversely impacting our ability to provide our
services, retain our current subscribers and attract new subscribers.
In addition, although we take protective measures and endeavor to modify them as circumstances warrant, our
information technology hardware and software infrastructure and communications systems may be vulnerable to a
variety of interruptions, including without limitation, natural disasters, terrorist attacks, telecommunications failures,
cyber-attacks and other malicious activities such as unauthorized access, misuse, computer viruses or other malicious
code, computer denial of service attacks and other events that could disrupt or harm our business. In addition, third-party
providers of some of our key systems may also experience interruptions to their information technology hardware and
software infrastructure and communications systems that could adversely impact us and over which we may have limited
or no control. We may obtain certain confidential, proprietary and personal information about our customers, personnel
and vendors, and may provide this information to third parties in connection with our business. If one or more of such
interruptions or failures occur to us or our third-party providers, it potentially could jeopardize such information and
other information processed and stored in, and transmitted through, our information technology hardware and software
infrastructure and communications systems, or otherwise cause interruptions or malfunctions in our operations, which
could result in significant losses or reputational damage. Due to the fast-moving pace of technology, it may be difficult
to detect, contain and remediate every such event. We may be required to expend significant additional resources to
modify our protective measures or to investigate and remediate vulnerabilities or other exposures, and we may be subject
to financial losses. Furthermore, the amount and scope of insurance we maintain may not cover expenses related to such
activities or events.
As a result of the increasing awareness concerning the importance of safeguarding personal information, the potential
misuse of such information and legislation that has been adopted or is being considered regarding the protection, privacy
and security of personal information, the potential liability associated with information-related risks is increasing,
particularly for businesses like ours that handle personal customer data. The occurrence of any such network or
information system related events or security breaches could have a material adverse effect on our reputation, business,
financial condition and results of operations. Significant incidents could result in a disruption of our operations,
customer dissatisfaction, damage to our reputation or a loss of customers and revenues.
We currently depend on EchoStar Corporation and its subsidiaries, or EchoStar, to design, develop and manufacture
substantially all of our new DISH branded pay-TV set-top boxes and certain related components, to provide the vast
majority of our transponder capacity, to provide digital broadcast operations and other services to us, and to provide
streaming delivery technology and infrastructure for our Sling TV services. Our business would be adversely affected
if EchoStar ceases to provide these products and services to us and we are unable to obtain suitable replacement
products and services from third parties.
EchoStar is our primary supplier of our DISH branded pay-TV 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 streaming delivery technology and infrastructure for our Sling TV services. We purchase digital set-top boxes
from EchoStar pursuant to a contract that expires on December 31, 2016. EchoStar provides digital broadcast operations
to us pursuant to a contract that expires on December 31, 2016. EchoStar has no obligation to supply digital set-top
boxes or digital broadcast operations to us after these dates. We may be unable to renew agreements for digital set-top
boxes or digital broadcast operations with EchoStar on acceptable terms or at all. We lease the vast majority of our
transponder capacity from EchoStar. Equipment, transponder leasing and digital broadcast operation costs may increase
beyond our current expectations. EchoStar’s inability to develop and produce, or our inability to obtain, equipment with
the latest technology, or our inability to obtain transponder capacity and digital broadcast operations and other services
from third parties, could adversely affect our gross new subscriber activations and subscriber churn rate and cause related
revenue to decline.