Dish Network 2001 Annual Report Download - page 10

Download and view the complete annual report

Please find page 10 of the 2001 Dish Network annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

8
Although we internally design and engineer our receiver systems, we outsource manufacturing to high-
volume contract electronics manufacturers. Sanmina-SCI Corporation (formerly known as SCI Systems, Inc.), a
high-volume contract electronics manufacturer, is the primary manufacturer of our receiver systems. JVC also
manufactures some of our receiver systems. In addition, during January 2002, we signed an agreement with
Thomson Multimedia, S.A., a French company, to manufacture DISH Network compatible satellite TV receivers
under the RCA brand name. Thomson anticipates commencing production by mid-year 2002.
Installation. While many consumers have the skills necessary to install our equipment in their homes, we
believe that most installations are best performed by professionals, and that on time, quality installations are
important to our success. Consequently, we are continuing to expand our installation business, conducted through
our DISH Network Service Corporation subsidiary. In addition to expanding our internal installation capability, we
also utilize independent installation providers. Independent installers are held to DISH Network Service
Corporation service standards to attempt to ensure each DISH Network customer receives the same quality
installation and service. Our offices and independent installers are strategically located throughout the continental
United States, in order to enable us to provide service to a greater number of DISH Network customers throughout
the country. Although there can be no assurance, we believe the continued expansion of our installation business
will help continue to improve quality control, decrease wait time on service calls and new installations and help us
to better accommodate anticipated subscriber growth.
Customer Service Centers. We currently own and operate customer service centers in Thornton, Colorado,
Littleton, Colorado, McKeesport, Pennsylvania, El Paso, Texas, Christiansburg, Virginia and Bluefield, West
Virginia. These centers field all of our customer service calls. Potential and existing subscribers can call a single
telephone number to receive assistance for hardware, programming, installation and technical support. We continue
to work to automate simple phone responses and to increase internet-based customer assistance, in order to better
manage customer service costs.
Digital Broadcast Operations Centers. Our principal digital broadcast operations center is located in
Cheyenne, Wyoming. In 1999, we acquired a second digital broadcast operations center in Gilbert, Arizona.
During 2000, we completed the first phase of the “build-out” of the Gilbert facility for use as a back up for our main
digital broadcast operations center in Cheyenne. In order to comply with “must-carry” rules, effective January 1,
2002 (see “–Government Regulation”), we began utilizing the Gilbert facility as an additional digital broadcast
operations center. Upon commercial operation of EchoStar VII and EchoStar VIII, we plan on expanding the role of
the Gilbert facility. Almost all of the functions necessary to provide satellite-delivered services occur at the digital
broadcast operations centers. The digital broadcast operations centers use fiber optic lines and downlink antennas to
receive programming and other data. The digital broadcast operations centers uplink programming content to our
DBS satellites via large uplink antennas. The digital broadcast operations centers also maintain a number of large
uplink antennas and other equipment necessary to modulate and demodulate the programming and data signals.
Equipment at our digital broadcast operations centers perform substantially all compression and all encryption of the
DISH Network’s programming signals.
Subscriber Management. We presently use, and are dependent on, CSG Systems Incorporated’s software
system, for all DISH Network subscriber management and billing functions.
Sales and Marketing. Independent dealers and distributors, retailers and consumer electronics stores
currently sell EchoStar receiver systems and DISH Network programming services. While we also sell receiver
systems and programming directly, independent dealers are responsible for most of our sales. These independent
dealers are primarily local retailers who specialize in TV and home entertainment systems. In addition, beginning in
2002, RadioShack Corporation will sell EchoStar receiver systems and DISH Network programming services
through its more than 5,000 stores and dealers nationwide.
We intend to enhance consumer awareness of our products by continuing to form alliances with nationally
recognized distributors of other consumer electronics products. We currently have an agreement with JVC to
distribute our receiver systems under its label through certain of its nationwide retailers.