DISH Network Launches Echostar 11

DISH Network has to be happy today, as their Echostar XI satellite was launched successfully late last night and is on its way to becoming fully operational.

Echostar XI was sent up to provide the much needed capacity DISH Network needs to continue their HD expansion. After falling behind Direct TV significantly in the high definition marketplace, DISH Network is making a strong comeback, announcing the addition of quite a few new HD channels in early August which should put their channel count at about 100.

Yesterdays launch of Echostar XI was contracted to Sea Launch, an independent launch and delivery company that earlier this year delivered a new satellite into orbit for Direct TV. The DirecTV 11 satellite is expected to become operational by September, and should allow DirecTV to expand their HD channel capacity up to 150. Whether there actually will be 150 HD channels is another matter.

Sea Launch reported that contact with the satellite was made about 70 minutes into the mission from Perth, Australia indicating that things are on track with Echostar 11. It generally takes several month of testing after the satellite reaches its orbiting position before the satellite actually begins transmitting programming back to DISH Network subscribers.

The mission is critical for DISH Network after the failure of the AMC-14 satellite earlier this year. That satellite made it out of the atmosphere, but then had a secondary burn failure, and the satellite did not reach its intended orbit position. While DISH Network did not own that satellite, it was planning on leasing the entire capacity. SES Americom was the owner, and filed a claim with insurers on the loss.

In a SEC filing today, DISH Network verified the successful launch of Echostar 11. In the same filing, DISH Network said their Echostar 2 satellite had a substantial failure yesterday and was considering that satellite to be a total loss. Echostar 2 was launch all the way back in September in 1996, and was primarily being used as a backup satellite.