FCC Bans Proprietary Set-Top Boxes

Begin forwarded message:

From: Dewayne Hendricks <[email protected]>
Date: January 11, 2007 4:47:49 PM EST
To: Dewayne-Net Technology List <[email protected]>
Subject: [Dewayne-Net] FCC Bans Proprietary Set-Top Boxes
Reply-To: [email protected]

FCC Bans Proprietary Set-Top Boxes
Posted on: 01/11/2007
<http://www.xchangemag.com/hotnews/71h111355.html>
Comcast and other cable companies must provide, by July 1, set-top=20=20
boxes based on the CableCARD smartcard rather than proprietary set-=20
top boxes that consumers now use to receive cable signals.

That=92s the word from the FCC as the media bureau on Wednesday denied=20=
=20
Comcast=92s request for a waiver on a ban not to offer integrated set-=20
top boxes, which the FCC has contended stifle competition and=20=20
consumer choice. Cable operators must deploy CableCARD-enabled=20=20
devices, something that makes them unhappy because they stand to lose=20=20
millions of dollars in revenue from renting proprietary set-top boxes=20=20
to subscribers.

The FCC did grant Cablevision=92s request for a two-year wavier and=20=20
conditionally granted the waiver request of Bend Cable, a small=20=20
operator in Bend, Ore.

The FCC has moved its deadlines for CableCARD integration twice times=20=20
over the past few years, in hopes that cable companies would develop=20=20
downloadable security alternatives to the smartcard, but those hopes=20=20
never came to fruition.

On Wednesday, the FCC paved the way for consumers to eventually=20=20
purchase, one time only, devices that will work with any cable=20=20
operator=92s signals. Cable companies have protested this move, as they=20=
=20
make several dollars on every set-top device in someone=92s home.=20=20
Consumers with three of four of these boxes pay up to $20 more for=20=20
cable service every month. That adds up to millions of extra dollars=20=20
annually for operators.

Comcast said it would appeal the decision.

=93We are very disappointed in this regrettable FCC Media Bureau=20=20
decision,=94 said David Cohen, executive vice president for Comcast, in=20=
=20
a prepared statement. =93This amounts to an FCC tax of hundreds of=20=20
millions of dollars on consumers with no countervailing benefits. We=20=20
will seek full commission review immediately.=94

The National Cable & Telecommunications Association said it was=20=20
=93incomprehensible=94 that the FCC would deny the waiver requests as=20=20
government officials make the transition from analog to digital=20=20
signals a priority.

Consumer and technology groups have blasted the original versions of=20=20
the CableCARD, which have only enabled one-way, rather than two-way,=20=20
communications. Newer versions seemed to have addressed that problem.

The decision further affects manufacturers such as Motorola Inc.,=20=20
Cisco Systems Inc., and Scientific-Atlanta, many of whom had=20=20
supported Comcast=92s request for a waiver on set-top box requirements.



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