1 EXHIBIT 12 PAGE 1 OF 1 ECHOSTAR BROADBAND CORPORATION COMPUTATION OF RATIOS (IN THOUSANDS) (UNAUDITED) CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES: NINE MONTHS ENDED YEAR ENDED DECEMBER 31, SEPTEMBER 30, ---------------------------------------------------------- ---------------------- 1995 1996 1997 1998 1999 1999 2000 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Income (loss) before taxes .................. $ (18,552) $ (156,529) $ (323,278) $ (294,304) $ (562,285) $ (336,943) $ (457,963) Interest expense ............................ 23,985 62,430 110,003 172,942 196,390 147,616 146,948 Capitalized interest ........................ 25,763 31,818 43,169 21,619 -- -- -- Interest component of rent expense(1) ....... 71 84 64 74 192 44 182 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total fixed charges ........................ 49,819 94,332 153,236 194,635 196,582 147,660 147,130 Earnings before fixed charges ............... $ 5,504 $ (94,015) $ (213,211) $ (121,288) $ (365,703) $ (189,283) $ (310,833) Ratio of earnings to fixed charges .......... 0.11 (1.00) (1.39) (0.62) (1.86) (1.28) (2.11) ========== ========== ========== ========== ========== ========== ========== Deficiency of available earnings to fixed charges .............................. $ (44,315) $ (188,347) $ (366,447) $ (315,923) $ (562,285) $ (336,943) $ (457,963) ========== ========== ========== ========== ========== ========== ========== - ------------------ (1) The interest component of rent expense has been estimated by taking the difference between the gross rent expense and net present value of rent expense using a weighted-average cost of capital of approximately 13% for the years ended December 31, 1995 through December 31, 1998. The weighted- average cost of capital for the year ended December 31, 1999 and for the nine months ended September 30, 1999 and 2000 approximated 9%. The cost of capital used to calculate the interest component of rent expense is representative of the Company's outstanding borrowings during each respective period.