Dish Extends CSG Contract Through 2017

Dish Network extended its billing-services contract with CSG Systems International through the end of 2017, under which CSG will be the exclusive provider of print, mail, bill-processing and related services for the direct broadcast satellite provider.

Dish is a major CSG customer. For the third quarter 2010, the satellite TV operator accounted for 19% -- about $25 million -- of the company's revenue. Comcast remains CSG's largest single customer, representing 24% (32 million) of sales in the period.

"CSG continues to invest in technologies and solutions that are important for Dish Network to deliver the products and services that our customers desire," Dish chief information officer Mike McClaskey said in a statement.

Under the extended agreement, Dish intends to migrate to CSG's Advanced Convergent Platform in 2012. Dish is the last of CSG's customers to migrate to the ACP platform from an older version of CSG's processing application. Once Dish completes the cutover, CSG will cease support and development on the older platform.

In November 2009, CSG entered into a multiyear subscriber-management agreement with Dish which had extended Dish's use of CSG's processing and related services through Dec. 31, 2012, and print and mail services through Dec. 31, 2014.

Englewood, Colo.-based CSG said annual revenues from Dish in the first few years of the revised agreement could be approximately 10% to 15% less than those expected to be generated in 2010, depending on the level of products and services that Dish decides to purchase from CSG under the agreement. However, the total fees expected to be generated through 2017 would increase significantly, according to CSG.

CSG also provided Dish with a pair of two-year renewal options, that if both were exercised, would extend the term for processing and related services and print and mail services through Dec. 31, 2021.