DISH UPDATE 11/9/05 Spoke with Mark Gilpin. Single bill is probably not going to work due to system & contract constraints. As a group deal, we would need to commit to 500 subs per month (minimum) This is a Pocket Shifting Static Market. DISH is trying to shore up the rural market (stifle any  base erosion) We are going to try to have a 4 hour training session at the Expo for Resi. Training is usually handled by the SBCA - The Satellite Broadcasting and Communications Association of America is the national trade organization representing all segments of the satellite industry and Providing an industry endorsed benchmark of knowledge for the installation of satellite products and services. It is best when the dealers are the installers. Commercial training for PCO, MDU, F2G is handled by the SBCA in conjunction with certified training centers like Wireguyz. Course dates are available here. Commercial Satellite Installation training is 12/12-13 in Atlanta. Commercial teams are available in 8 markets (MIA, ATL, CHI, DAL, DENV, LA, NYC, SF) The team will take one bulk/commercial deal in order to train you. Thank you. Peter Radizeski Interim Executive Director Summary of the DishNetworks Standard Retailer Program (SRP) -- notes from Frank at SnappyDSL from DISH Presentation at ISP Expo on 12/10/05 The SRP is governed by 2 documents: a set of Business Rules applicable to the acquisition of new customers and another set of business rules for upgrades of existing customers. Both documents will be forwarded to II4A for review. The following is a very brief summary of some of these rules; this summary was compiled from the presentation by DishNetworks (DN) during day 2 of the II4A Expo in Tampa on 12/10/05 (details contained in this summary need to be verified against the business rules, as post-discussion analysis has revealed some inconsistencies). The retailer's responsibilites under the SRP include: 1. Facilitate/place the order (this needs clarification) 2. Buy initial equipment - Customers either buy or lease equipment from DN (from the conversations during the expo, it appears that very few customers actually buy their equipment - most "lease" the equipment  because it appears to be free to them).  The retailer must first purchase the equipment from DN at full price. The purchase happens immediately by EFT (credit card or ACH, but no invoicing with net xx). The equipment is shipped to the retailer, who does the installation. After installation is complete and DN "sees" the customer using the service, the cost of equipment is reimbursed to the retailer by EFT (within a week?). The retailer actually owns the equipment for the first 3 or 6 months; if the customer cancels service during this time, the cost of equipment is charged back to the retailer - see equipment chargebacks below). Equipment that the retailer must purchase is specified on a list generated by DN according to information provided by the customer during the sales order. In addition to this listed equipment, the retailer must stock additional supplies that are not on the equipment list but may be needed during the installation (such as additional switches, cable & other consumables). 3. Complete the initial installation - The retailer installs the equipment, gets the customer signoff and notifies DN 4. Support the initial installation - Retailers are not required to support the installation, but failing to provide such support can result in chargebacks and loss of residual (explained further below). 5. Pay for Equipment Chargebacks - If the customer cancels service within a set time period, the full cost of equipment is charged back to the retailer. Equipment chargebacks for Basic customers will happen if service is cancelled before 180 days; the chargeback period for Premium customers is 90 days. Customers are classified by DN as either Basic or Premium, depending on their credit score. 6. Pay for One-time Commission Chargebacks - Commission chargebacks to the retailer happen for early cancellations and for 3rd party truck-rolls (explained further in commission explanation below) DN's responsibilities include: 1. Customer billing - This is not private label billing - DN will bill the customer directly under the DN brand. 2. Customer service/support 3. Reimbursing the retailer for listed equipment - After installation is complete and DN "sees" the customer using the service, the cost of purchased/listed equipment is reimbursed to the retailer by EFT (within a week?). DN does not reimburse for non-listed supplies & equipment used during the install. 4. One-time commissions and chargebacks to the retailer - Commissions are paid to the retailer by DN for new customers only. Commissions include a one-time commission, chargebacks to the one-time commission and residual commissions. The one-time commission consists of: - Primary Commission = $300 (if cust leases equip) or $250 (if cust buys equip) - Additional tuner commission = $50/aditional tuner, up to $150 max - HD/DVR commission = $25 (if cust purchases HD tuner or DVR) - DH PP commission = $15 - CO-OP commission = from $50 to $500 dollars (allocated according to 50/50 formula of committed marketing dollars) Primary Commission Chargebacks to the retailer can happen if the customer cancels early, as follows: - for Premium Customers who purchase equipment -- the full $250 Primary Commission for a new customer is charged back if the customer cancels within 90 days - for Basic Customers who lease equipment -- a portion of the $300 Primary Commission for a new customer is charged back if the customer cancels according to the following schedule:    -- if the cust cancels from 0-90 days: full chargeback    -- if the cust cancels from 90-180 days: 75% chargeback    -- if the cust cancels from 181-270 days: 50% chargeback    -- if the cust cancels from 271-3600 days: 25% chargeback    -- if the cust cancels after 360 days: no chargeback Truck roll chargebacks to the retailer in the amount of $100 will happen if DN issues a truck roll within 180 days for any customer (basic or premium). Ex. customer calls DN with a problem, DN contacts the retailer, the retailer doesn't do the truck roll, DN sends another retailer to do the truck roll (Question: how many chargebacks, per customer, can happen?). 5. Residual commissions to the retailer - Residuals are paid quarterly, acording to the following tier. Note: no commissions will be paid for a given quarter if the average monthly signup of new customers during that quarter is less than 6 (said another way: if the retailer signs up 18 or fewer customers in a quarter, the residual amount paid for all customers during that quarter is $0. Residual tier (the following amounts are paid to the retailer for all customers): 0 to 6 new cust/month, averaged over 3 months -- $0.0 per customer 7 to 23 new cust/month, averaged over 3 months -- $0.50 per customer 24 to 63 new cust/month, averaged over 3 months -- $0.75 per customer 64 to 124 new cust/month, averaged over 3 months -- $1.00 per customer 125 to 624 new cust/month, averaged over 3 months -- $1.25 per customer 625+ new cust/month, averaged over 3 months -- $1.50 per customer Residuals continue for a maximum period of 5 years (Question: do all commissions stop 5 years after the reatiler joins the SRP; or do the residuals for any given customer end after that customer has had service for 5 yrs?). The residuals for any individual customer will end if another retailer visits your customer (Ex. customer calls DN with a problem, DN contacts the retailer, the retailer doesn't do the truck roll, DN sends another retailer to do the truck roll) Started talking to Wild Blue Satellite Internet provider. Thank you for your interest in becoming a WildBlue dealer and/or installer. We have an agreement with DSI, who is responsible for the recruitment, management, and training of WildBlue dealers and the associated distribution of WildBlue products based on your state designation. We have forwarded your contact information to DSI directly, but encourage you to make contact with them as well. DSI - 800-888-8876 www.dsisystemsinc.com  Password: 2save They want paperwork too (6 forms) located under DSI Staff. About DSI DSI Systems, Inc. is one of the nation's largest distributors of satellite and consumer electronic equipment. Since 1984, DSI has dedicated itself to serving dealers with quality customer service and convenience. With 30 sales warehouses across the U.S., DSI is well positioned to serve retailers and installers. DSI also handles DirecTV and SIRIUS radio. If you are interested in joining our organization, Independent ISPs for America, Inc., please contact us at 813.496.2122 or isps@ii4a.org