Dish Network 2001 Annual Report Download - page 18

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16
GOVERNMENT REGULATION
The following summary of regulatory developments and legislation is not intended to describe all present
and proposed government regulation and legislation affecting the video programming distribution industry.
Government regulations that are currently the subject of judicial or administrative proceedings, legislative hearings
or administrative proposals could change our industry, in varying degrees. We cannot predict either the outcome of
these proceedings or any potential impact they might have on the industry or on our operations. This section sets
forth a brief summary of regulatory issues pertaining to our operations.
We are required to obtain authorizations and permits from the FCC and other similar foreign regulatory
agencies to construct, launch and operate our satellites and other components of our DBS system. Additionally, as a
private operator of a United States satellite system, we are subject to the regulatory authority of the FCC and the
Radio Regulations promulgated by the International Telecommunication Union. We also have to obtain import and
general destination export licenses from the United States Department of Commerce to receive and deliver certain
components of direct-to-home satellite TV systems. In addition, the delivery of satellites and related technical
information for the purpose of launch by foreign launch services providers is subject to strict export control and
prior approval requirements.
FCC Permits and Licenses
The FCC has jurisdiction and review power over the following general areas:
•assigning frequencies and authorizations;
•ensuring compliance with the terms and conditions of such assignments and authorizations, including
required timetables for construction and operation of satellites and other due diligence requirements;
•authorizing individual satellites and earth stations;
•avoiding interference with other radio frequency emitters; and
•ensuring compliance with applicable provisions of the Communications Act of 1934.
All of our FCC authorizations are subject to conditions imposed by the FCC in addition to the FCC's
authority to modify, cancel or revoke them. In addition, all of our authorizations for satellite systems that are not yet
operational are subject to construction and progress obligations, milestones, reporting and other requirements. We
have not filed, or not timely filed, some of the required reports. The FCC has indicated that it may revoke, terminate,
condition or decline to extend or renew such authorizations if we fail to comply with applicable Communications
Act requirements. We have received conditional licenses from the FCC to operate satellites in the Ka-band and Ku-
band and have an application pending for a system that would use extended Ku-band frequencies (although that
application has remained pending for years). Use of those licenses and conditional authorizations are subject to
certain technical and due diligence requirements, including the requirement to construct and launch satellites. The
granting of those licenses has been challenged by parties with interests that are adverse to ours. Among other things,
our conditional license for a Ku-band satellite system is subject to pending petitions for reconsideration and
cancellation. The construction, completion and launch milestones for both Ku-band satellites have expired. We have
filed a timely request for the extension of these milestones for our Ku-band system. With respect to our license for
the Ka-band system, the FCC recently authorized our operation of inter-satellite links for the system and assigned
milestone requirements for the construction, launch and operation of the satellite system. If we fail to file adequate
reports or to demonstrate progress in the construction of our satellite systems, the FCC has stated that it may cancel
our authorizations for those systems. Consistent with our initial application, our application for our Ka-band system
license allows us to use only 500 MHz of Ka-band spectrum in each direction, while many other licensees have been
authorized to use 1,000 MHz in each direction. The FCC recently denied our modification application to use
additional spectrum and granted certain Ka-band licenses that would preclude such expanded capacity for us.