Dish Network 2013 Annual Report Download - page 50

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As a result of the expiration of this prohibition on exclusivity, we may be limited in our ability to obtain access at
all, or on nondiscriminatory terms, to programming from programmers that are affiliated with cable system
operators. In addition, any other changes in the Cable Act, and/or the FCC’s rules that implement the Cable Act,
that currently limit the ability of cable-affiliated programmers to discriminate against competing businesses such as
ours, could adversely affect our ability to acquire cable-affiliated programming at all or to acquire programming on
non-discriminatory terms.
Furthermore, the FCC had imposed program access conditions on certain cable companies as a result of mergers,
consolidations or affiliations with programmers. The expiration of the exclusivity prohibition in the Cable Act
triggered the termination of certain program access conditions that the FCC had imposed on Liberty. In July 2012,
similar program access conditions that had applied to Time-Warner expired as previously scheduled. These
developments may adversely affect our ability to obtain Liberty’s and Time-Warner’s programming, or to obtain it
on non-discriminatory terms. In the case of certain types of programming affiliated with Comcast through its
control of NBCUniversal, the prohibition on exclusivity will still apply until January 2018. During that time, we
have the right to subject the terms of access to NBCUniversal’s programming to binding arbitration if we and the
programmer cannot reach agreement on terms, subject to FCC review. There can be no assurance that this
procedure will result in favorable terms for us or that the FCC conditions that establish this procedure will be
prevented from expiring on their own terms.
In addition, affiliates of certain cable providers have denied us access to sports programming they feed to their cable
systems terrestrially, rather than by satellite. The FCC has held that new denials of such service are unfair if they
have the purpose or effect of significantly hindering us from providing programming to consumers. However, we
cannot be sure that we can prevail in a complaint related to such programming and gain access to it. Our continuing
failure to access such programming could materially and adversely affect our ability to compete in regions serviced
by these cable providers.
The injunction against our retransmission of distant networks, which is currently waived, may be reinstated.
Pursuant to STELA, we obtained a waiver of a court injunction that previously prevented us from retransmitting
certain distant network signals under a statutory copyright license. Because of that waiver, we may provide distant
network signals to eligible subscribers. To qualify for that waiver, we are required to provide local service in all 210
local markets in the U.S. on an ongoing basis. This condition poses a significant strain on our capacity. Moreover,
we may lose that waiver if we are found to have failed to provide local service in any of the 210 local markets. If
we lose the waiver, the injunction could be reinstated. Furthermore, depending on the severity of the failure, we
may also be subject to other sanctions, which may include, among other things, damages. Pursuant to STELA, our
compliance with certain conditions of the waiver is subject to continued oversight.
We are subject to significant regulatory oversight, and changes in applicable regulatory requirements, including
any adoption or modification of laws or regulations relating to the Internet, could adversely affect our business.
Our operations, particularly our DBS operations and our wireless spectrum licenses, are subject to significant
government regulation and oversight, primarily by the FCC and, to a certain extent, by Congress, other federal
agencies and foreign, state and local authorities. Depending upon the circumstances, noncompliance with legislation
or regulations promulgated by these authorities could result in the limitations on, or suspension or revocation of, our
licenses or registrations, the termination or loss of contracts or the imposition of contractual damages, civil fines or
criminal penalties, any of which could have a material adverse effect on our business, financial condition and results
of operations. Furthermore, the adoption or modification of laws or regulations relating to video programming,
satellite services, wireless telecommunications, broadband, the Internet or other areas of our business could limit or
otherwise adversely affect the manner in which we currently conduct our business. If we become subject to new
regulations or legislation or new interpretations of existing regulations or legislation that govern Internet network
neutrality, for example, we may be required to incur additional expenses or alter our business model. The manner in
which legislation governing Internet network neutrality may be interpreted and enforced cannot be precisely
determined, which in turn could have an adverse effect on our business, financial condition and results of operations.
You should review the regulatory disclosures under the caption “Item 1. Business — Government Regulations” of
this Annual Report on Form 10-K.