Repeat pull from proven relationships plus room left

EchoStar Corporation (SATS) — this company's answers

The model's full reasoning — Q1 2018 call → NOWe need to determine if management describes existing customers/partners taking more on their own initiative, and that these relationships remain lightly penetrated. Look for evidence: In the transcript, Pradman Kaul mentions "In Q1, one of our in-flight entertainment aeronautical customers expanded and extended their service on EchoStar 105" - that's an existing customer expanding. Also "We are also providing capacity to one of our customers to support critical communication services in Puerto Rico" - that's a new service? Not necessarily expansion. Also "In the aero market, we had additional orders for the expansion of the services that we provide, Global Eagle." - that's an existing customer expanding. Also "We received some major orders from news space in Thailand in a partnership deal SES" - that's new? Not clear. But the question asks: "does management describe that counterparties the company has ALREADY SERVED AND PROVEN ITSELF WITH — existing customers, accounts, partners, members, or programs — are CURRENTLY, ON THEIR OWN INITIATIVE, TAKING OR COMMITTING TO MEANINGFULLY MORE from the company than they previously did (larger or earlier reorders, broader deployments, added sites, products, or scope, relationships stepped up to bigger phases), AND does management convey that these same relationships remain LIGHTLY PENETRATED — that what these counterparties have taken so far is still a small share of what they could take — so that the expansion now visible is early?" We have examples of existing customers expanding: the in-flight entertainment customer, Global Eagle, and also "we extended our relationship with BP pipelines, marathon pipelines and added Baker Hughes as a new customer" - that's a mix. But the key is whether management conveys that these relationships remain lightly penetrated. Do they say that? They don't explicitly say "lightly penetrated" but they might imply it. However, the question requires both halves: expansion behavior and lightly penetrated. The transcript does not seem to have management stating that these existing relationships have much more room. They talk about filling up satellites, but that's about capacity, not about these specific relationships. They also talk about new customers. The expansion examples are few and not described as early stage.

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