Dish Network 2015 Annual Report Download - page 53

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determination that they are ineligible to receive the Bidding Credit Amounts. We cannot predict with any degree of
certainty the timing or outcome of these proceedings. An adverse ruling against Northstar Wireless or SNR Wireless in
these proceedings could potentially result in fines and/or revocation of the Northstar Licenses or SNR Licenses,
respectively. See “We have made substantial investments to acquire certain wireless spectrum licenses and other related
assets. In addition, we have made substantial non-controlling investments in the Northstar Entities and the SNR Entities
related to AWS-3 wireless spectrum licenses” above for further information.
We may need to make significant additional loans to the Northstar Entities and 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 the
Northstar Licenses and the SNR Licenses, and comply with regulations applicable to the Northstar Licenses and the SNR
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. We may need to raise significant additional capital
in the future, which may not be available on acceptable terms or at all, to make further investments in the Northstar
Entities and the SNR Entities. 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.
To the extent that we commercialize our wireless spectrum licenses, we will face certain risks entering and competing
in the wireless services industry and operating a wireless services business.
We have made substantial investments to acquire certain wireless spectrum licenses and related assets. We will need to
make significant additional investments or partner with others to, among other things, commercialize, build-out, and
integrate these licenses and related assets, and any additional acquired licenses and related assets; and comply with
regulations applicable to such licenses. Depending on the nature and scope of such commercialization, build-out,
integration efforts, and regulatory compliance, any such investments or partnerships could vary significantly. We may
also determine that additional wireless spectrum licenses may be required to commercialize our wireless business and to
compete with other wireless service providers. For example, on February 10, 2016, we filed an application with the FCC
to potentially participate as a bidder in the upcoming 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. We
may need to raise significant additional capital in the future to fund the efforts described above, which may not be
available on acceptable terms or at all. There can be no assurance that we will be able to develop and implement a
business model that will realize a return on these wireless spectrum licenses or that we will be able to profitably deploy
the assets represented by these wireless spectrum licenses, which may affect the carrying amount of these assets and our
future financial condition or results of operations.
To the extent we commercialize our wireless spectrum licenses and enter the wireless services industry, a wireless
services business presents certain risks. Any of the following risks, among others, may have a material adverse effect on
our future business, results of operations and financial condition.
x The wireless services industry is competitive. We have limited experience in the wireless services industry,
which is a competitive industry, with increasing customer demands for data services that require increasing
capital resources to maintain a robust network. The wireless services industry has incumbent and established
competitors such as Verizon, AT&T, T-Mobile USA Inc. (“T-Mobile”) and Sprint Corporation (“Sprint”), with
substantial market share. Some of these companies have greater financial, marketing and other resources than
us, and have existing cost and operational advantages that we lack. Market saturation is expected to continue to
cause the wireless services industry’s customer growth rate to moderate in comparison to historical growth
rates, leading to increased competition for customers. As the industry matures, competitors increasingly must
seek to attract a greater proportion of new subscribers from each other’s existing subscriber bases rather than
from first-time purchasers of wireless services. Furthermore, the cost of attracting a new customer is generally
higher than the cost associated with retaining an existing customer. In addition, we may face increasing
competition from wireless telecommunications providers who offer mobile video offerings. Wireless mobile
video offerings will likely become more prevalent in the marketplace as wireless telecommunications providers
expand the fourth generation of wireless communications. In July 2015, AT&T completed its acquisition of