Dish Network 2014 Annual Report Download - page 53

43
43
million refund from the FCC to one of our wholly-owned subsidiaries related to the AWS-3 Auction. Issuance of
any AWS-3 Licenses to Northstar Wireless and SNR Wireless depends, among other things, upon the FCC’s review
and approval of the applications filed by Northstar Wireless and SNR Wireless. Objections to the applications filed
by Northstar Wireless and SNR Wireless must be submitted to the FCC within ten calendar days following the
release by the FCC of the public notice listing the applications acceptable for filing. We cannot predict the timing or
the outcome of the FCC’s review of the applications filed by Northstar Wireless and SNR Wireless.
In the event that the FCC grants the Northstar Licenses and the SNR Licenses, 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. 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.
We have used a substantial portion of our existing cash and marketable investment securities to fund our non-
controlling debt and equity investments in the Northstar Entities and the SNR Entities. As a result of, among other
things, these non-controlling investments, we may need to raise significant additional capital in the future, which
may not be available on acceptable terms or at all. In addition, economic weakness or weak results of operations
may limit our ability to generate sufficient internal cash to fund these non-controlling debt and equity investments,
capital expenditures, acquisitions and other strategic transactions, as well as to fund ongoing operations and service
our debt. As a result, these conditions make it difficult for us to accurately forecast and plan future business
activities because we may not have access to funding sources necessary for us to pursue organic and strategic
business development opportunities. See “We face certain risks related to our non-controlling investments in the
Northstar Entities and the SNR Entities, which may have a material adverse effect on our business, results of
operations and financial condition” below for more information.
Impairment of Assets
Furthermore, the fair values of wireless spectrum licenses and related assets may vary significantly in the future. In
particular, valuation swings could occur if:
 consolidation in the wireless industry allows or requires wireless carriers to sell significant portions of
their wireless spectrum holdings, which could in turn reduce the value of our spectrum holdings;
 a sale of spectrum by one or more wireless providers occurs;
 the FCC pursues certain policies designed to increase the number of wireless spectrum licenses
available in each of our markets; or
 the FCC conducts additional wireless spectrum auctions.
If the fair value of our wireless spectrum licenses were to decline significantly, the value of these licenses could be
subject to impairment charges. We assess potential impairments to our indefinite-lived intangible assets annually or
more often if indicators of impairment arise to determine whether there is evidence that indicate an impairment
condition may exist.
Based on the FCC’s rules applicable to our AWS-4 authorizations no longer requiring an integrated satellite
component or ground spare and on our evaluation of the satellite capacity needed for our wireless segment, among
other things, during the second quarter 2013, we concluded that T2 and D1 represented excess satellite capacity for
the potential commercialization of our wireless spectrum. During the fourth quarter 2014, EchoStar purchased our
rights to the T2 satellite. While we are no longer required to operate an integrated satellite component, we are
currently planning on using T1 and D1 in the commercialization of our wireless spectrum or for other commercial
purposes. If T1 is not used in the commercialization of our wireless spectrum or for other commercial purposes, we
may need to impair it in the future, which could materially and adversely affect our future results of operations. If