EchoStar (ECHO) risk factors, FY2025 10-K

Risks Related to Our Potential Investment in SpaceX

1. 01Competition and Economic Risks
2. 02We face intense and increasing competition from providers of video, broadband and/or wireless services, which may require us to further increase subscriber acquisition and retention spending or accept lower subscriber activations and higher subscriber churn
3. 03We may be required to make substantial additional investments in infrastructure to respond to competitive pressure to deliver enhanced programming and other value-added services, and there can be no assurance that we will be able to compete effectively with offerings from other pay-TV providers
4. 04Changing consumer behavior and new technologies in our Pay-TV business may reduce our subscriber activations and may cause our subscribers to purchase fewer services from us or to cancel our services altogether, resulting in less revenue to us
5. 05We face certain risks competing in the wireless services industry and operating a facilities-based wireless services business
6. 06Our pay-TV competitors may be able to leverage their relationships with programmers to reduce their programming costs and/or offer exclusive content that will place them at a competitive advantage to us67% rewritten
7. 07We compete with the MNOs whose networks we rely on to provide wireless services to our customers, and they may seek to limit, reduce or terminate our network access to the extent that it becomes competitively advantageous to do so28% rewritten
8. 08Changes in how network operators handle and charge for access to data that travels across their networks could adversely impact our Pay-TV business
9. 09Economic weakness and uncertainty may adversely affect our ability to grow or maintain our business
10. 10We are facing increasing competition which could impact demand for, and result in, increasing pricing pressures with respect to, our products and services
11. 11If we are unable to take advantage of technological developments on a timely basis, or at all, we may experience a decline in demand for our services or face challenges in implementing or evolving our business strategy40% rewritten

Operational and Service Delivery Risks

1. 12Any deterioration in our operational performance and subscriber satisfaction could adversely affect our business, financial condition and results of operations
2. 13If our subscriber activations decrease, or if our subscriber churn rate, subscriber acquisition costs or retention costs increase, our financial performance will be adversely affected
3. 14With respect to our Pay-TV business, programming expenses are increasing, which may adversely affect our future financial condition and results of operations
4. 15We depend on others to provide the programming that we offer to our Pay-TV subscribers and, if we fail to obtain or lose access to certain programming, our Pay-TV subscriber activations and our subscriber churn rate may be negatively impacted
5. 16We may not be able to obtain necessary retransmission consent agreements at acceptable rates, or at all, from local network stations
6. 17We have limited satellite capacity and failures or reduced capacity could adversely affect our business, financial condition and results of operations
7. 18Extreme weather may result in risk of damage to our infrastructure and therefore our ability to provide services, and may lead to changes in federal, state and foreign government regulation, all of which could materially and adversely affect our business, results of operations and financial condition
8. 19Our failure to effectively invest in, introduce and implement new competitive products and services could cause our products and services to become obsolete and could negatively impact our business
9. 20We rely on a single vendor or a limited number of vendors to provide certain key products or services to us, and the inability of these key vendors to meet our needs could have a material adverse effect on our business
10. 21Changes in trade policies, including, but not limited to, tariffs and other restrictions, could, among other things, increase our costs, disrupt our supply chain and negatively affect our business, operations and financial conditionNew
11. 22We depend on independent third parties to solicit orders for our services that represent a meaningful percentage of our total gross new subscriber activations

Risks Related to our Human Capital

1. 23We rely on highly skilled personnel for our business, and any inability to hire and retain key personnel or to hire qualified personnel may negatively affect our business, financial condition and results of operations
2. 24Our business growth and customer retention strategies rely in part on the work of technically skilled employees

Risks Related to our Satellites

1. 25Our owned and leased satellites in orbit are subject to significant operational and environmental risks that could limit our ability to utilize these satellites
2. 26Our satellites under construction are subject to risks related to, among other things, construction, technology, regulations and launch that could limit our ability to utilize these satellites, increase costs and adversely affect our business
3. 27Our use of certain satellites is often dependent on satellite coordination agreements, which may be difficult to obtain
4. 28We may face interference from other services sharing satellite spectrum

Risks Related to our Products and Technology

1. 29Our business depends on certain intellectual property rights and on not infringing the intellectual property rights of others
2. 30We are, and may become, party to various lawsuits which, if adversely decided, could have a significant adverse impact on our business, particularly lawsuits regarding intellectual property
3. 31If our products contain defects, we could be subject to significant costs to correct such defects and our product and network service contracts could be delayed or cancelled, which could adversely affect our revenue28% rewritten

Risks Related to Cybersecurity

1. 32Any failure or inadequacy of our information technology infrastructure and communications systems or those of third parties that we use in our operations, including, without limitation, those caused by cyber-attacks or other malicious activities, could disrupt or harm our business
2. 33We have experienced and may experience in the future cyber-attacks and other attempts to gain unauthorized access to our systems on a consistent basis43% rewritten
3. 34For example, certain parties may attempt to fraudulently induce employees or subscribers into disclosing usernames, passwords or other sensitive information, which may in turn be used to access our information technology systemsNew
4. 35The confidentiality, integrity and availability of our services and products depends on the continuing operation of our information technology and other enabling systems
5. 36Our international businesses expose us to additional risks that could harm our business
6. 37Our ongoing investments in security will likely continue to identify new vulnerabilities within our services and products
7. 38We, and certain of our subsidiaries, currently do not have the necessary cash on hand, projected future cash flows or committed financing to fund our obligations over the next twelve months, which raises substantial doubt about our, and certain of our subsidiaries, ability to continue as a going concernNew
8. 39In addition, even if we complete the AT&T Transactions and SpaceX Transactions, due to government action and creditor claims, our RAN-related infrastructure subsidiary, DISH Wireless L.L.C. (“DWLLC”), may not be able to operate as a going concernNew
9. 40We have substantial debt outstanding and may incur additional debt, and covenants in our Indentures could limit our ability to undertake certain types of activities and adversely affect our liquidityNew
10. 41We depend upon our subsidiaries’ earnings to make payments on our indebtedness
11. 42We have made substantial investments to acquire certain wireless spectrum licenses and other related assets, and may be unable to realize a return on these assets42% rewritten
12. 43We may pursue acquisitions, dispositions, capital expenditures, the development, acquisition and launch of new satellites and other strategic initiatives to complement or expand our business, which may not be successful and we may lose a portion or all of our investment in these acquisitions and transactions
13. 44We will need additional capital, which may not be available on favorable terms or at all, to fund current obligations, continue investing in our business and to finance acquisitions and other strategic transactions
14. 45Continued or prolonged higher interest rates could increase our cost of capital and require us to devote a higher percentage of our cash flow to interest payments, which could have a material adverse effect on our financial results
15. 46The conditional conversion features of our convertible notes, if triggered, may adversely affect our financial condition
16. 47From time to time a portion of our investment portfolio may be invested in securities that have limited liquidity and may not be immediately accessible to support our financing needs
17. 48Covenants in our and our subsidiaries’ Indentures restrict our business in many ways

Risks Related to the Regulation of Our Business

1. 49Our services depend on FCC licenses that can expire or be revoked or modified and applications for FCC licenses that may not be granted
2. 50The risk of non-compliance with laws and regulations, including, but not limited to, the risk of changes to laws and regulations, could adversely affect our business
3. 51If our internal controls are not effective, our business, our stock price and investor confidence in our financial results may be adversely affected

Risks Related to Ownership of our Common Stock

1. 52We are controlled by one principal stockholder who is our Chairman, President and Chief Executive Officer
2. 53It may be difficult for a third-party to acquire us, even if doing so may be beneficial to our shareholders, because of our capital structure
3. 54As discussed above, Mr. Ergen beneficially owns approximately 51.3% of our total equity securities and approximately 90.4% of the total voting power of all classes of shares and such ownership may make it impractical for any third-party to obtain control of us
4. 55Future issuances of our Class A common stock and hedging activities may depress the trading price of our Class A common stock
5. 56Our Class A common stock price and trading volume has been and may continue to be volatile or may decline regardless of our operating performance, which could cause purchasers of our Class A common stock to incur substantial losses

General Risks

1. 57Sociopolitical volatility and polarization may adversely affect our business operations and reputation