Dish Network 1997 Annual Report Download - page 21

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be reassigned to another orbital location or it may become subject to significant limitations on its power. While
EchoStar Satellite Corporation (“ ESC” ), an indirect, wholly-owned subsidiary of ECC, has submitted proof of its
financial qualifications, PrimeStar and GE Americom have challenged it, and in March 1997 separately filed petitions
to cancel the ESC License on the grounds that the supplemental financial information provided by ESC is not adequate.
If the FCC were to grant these petitions, ESC would lose the ESC License. Finally, PrimeStar and GE Americom have
opposed ESC’s request for authorization to add C-band capabilities to one satellite of its Ku-band system by separately
filing petitions (in March 1997) to deny ESC’s application on similar grounds set forth in their petitions outlined above.
If the FCC were to grant these petitions, ESC would not obtain the requested authorization to add C-band capabilities to
one of its satellites. There can be no assurance as to how the FCC will rule with respect to any of these challenges.
While EchoStar has not finalized a business plan that incorporates use of this spectrum and is not relying on this
spectrum for the generation of future revenues, if the FCC were to rule against EchoStar, a potential future business
opportunity would be lost.
In August 1997, GE Americom filed an application requesting modification of its license for a
C-band/Ku-band satellite currently located at 89° WL, to allow relocation of that satellite to 83° WL. In support of that
request, GE Americom has argued that the license for that satellite is set to expire before EchoStar’s FSS satellite is
expected to be launched to that location. EchoStar has opposed the modification application, but has stated that it
would not oppose a request for temporary relocation of GE’s satellite to that slot on an STA basis.
EchoStar also has an application pending with the FCC for two extended Ku-band FSS satellites to be located
at 85° WL and 91° WL.
If EchoStar successfully constructs and launches Ku-band, extended Ku-band, and Ka-band satellites, those
satellites might be used to complement the DISH Network, or for a variety of other uses. It is possible that the unique
FSS Ku-band and Ka-band orbital locations requested by EchoStar and others could permit construction of satellites
with sufficient power to allow reception of satellite signals by relatively small dishes. As these projects are in the early
stages of development and are currently being challenged by several companies with interests adverse to those of
EchoStar, there can be no assurance that EchoStar’s applications will be granted by the FCC or that, if granted,
EchoStar will be able to successfully capitalize on any resulting business opportunities.
Other Permits
An 80% owned subsidiary of EchoStar has applied for authority to construct, launch and operate a
six-satellite, low-earth orbit (“ Little LEO” ) system. This application (and amendment thereto) has been opposed.
While the services made possible by a Little LEO system are unrelated to DBS, it is possible that the system could
serve as a path for wireless communication with EchoStar’s DBS customers, particularly for periodic polling of units
for pay-per-view purchases and relatively rapid feedback on viewer pay-per-view buy rates and preferences. This
project is in an early stage of development and there can be no assurance that EchoStar’s application will be granted by
the FCC or that, if granted, EchoStar will be able to successfully capitalize on any resulting business opportunity.
Among other regulatory requirements, all of EchoStar’s DBS systems are required to conform to the ITU
Region 2 Plan for Broadcast Satellite Service (the “ BSS Plan” ). Any operations that are not consistent with the BSS
Plan (including, among other things, the EchoStar DBS System’s digital transmissions) only can be authorized on a
non-interference basis pending successful modification of the BSS Plan or the agreement of all affected administrations
to the non-conforming operations. Accordingly, unless and until the BSS Plan is modified to include the technical
parameters of a DBS applicant’s operations, non-standard satellites must not cause harmful electrical interference to,
and are not entitled to any protection from, interference caused by other assignments that are in conformance with the
BSS Plan. All of EchoStar’s satellites require modifications of the ITU plan to be entitled to such protection. The ITU
has requested certain technical information in order to process the requested modification of the BSS plan for
EchoStar I and EchoStar II, and EchoStar has cooperated, and continues to cooperate, with the FCC in the preparation
of its responses to any ITU requests. The Company cannot predict when the ITU will act upon these requests for
modification or if these requests will be granted.
EchoStar owns a 49% non-voting, minority interest in ALTA Wireless, Inc. (“ALTA” ), a Denver-based
wireless communications company which is one of 138 companies currently participating in the local multipoint
distribution service (“ LMDS” ) spectrum auction. LMDS frequencies could potentially be used to provide a variety of