[opendtv] Re: PR: Majority of New HDTVs Powered By ATI

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Tue, 16 Nov 2004 14:20:56 -0500

At 4:37 PM -0800 11/15/04, Dale Kelly wrote:
>The inclusion of a digital "tuner" (cable Plug and Play feature) in DTV sets
>was an Cable Industry initiative which required FCC approval and to my
>knowledge was not pro forma. One quid pro quo for such approval was that an
>ATSC tuner be included in such sets and these are the ATI tuners of which we
>speak.
>How the cable industry was brought to this initiative is of interest and I
>have not heard that the FCC was involved.

Perhaps a little background history is in order here.

In the early '90s, there was tremendous public pressure on Congress 
do something about rapidly rising cable rates. The Cable Television 
Consumer Protection and Competition Act of 1992 (the "Cable Act") 
gave the FCC power to re-regulate the Cable industry. FYI, this was 
the ONLY bill that was passed over a Presidential veto during the 
first Bush administration.

Among the provisions of that bill was a mandate for the FCC to 
unbundle consumer premises equipment, and to limit the charges that a 
cable company could levy for certain aspects of the customer premises 
wiring. Prior to this legislation, a cable company could charge a 
monthly fee for each set served in a home. The legislation made it 
clear that cable companies COULD NOT prevent a consumer from using a 
"third-party" STB that was technically compatible with the system.

Here is an excerpt from an FCC FAQ on the 1992 Cable Act that 
provides additional details:

http://www.fcc.gov/Bureaus/Cable/News_Releases/nrcb4009.txt

February 22, 1994

FREQUENTLY ASKED QUESTIONS REGARDING
CABLE TELEVISION REGULATIONS

The Federal Communications Commission has adopted a number of rules 
regarding cable television as required by the Cable Television 
Consumer Protection and Competition Act of 1992 (the "Cable Act"). 
The following information answers some frequently asked questions 
about cable television regulation.

.........

Q: My cable operator tells me that now I have to use equipment which 
I didn't need before, such as a converter box or a remote control, 
and they want to charge me for the use of this equipment. Do I have 
to use their equipment and do I have to pay for it?

A: Cable operators may require their subscribers to use specific 
equipment, such as converters, to receive the basic service tier. 
They may include a separate charge on your bill to lease this 
equipment to you on a monthly basis. This monthly rate must be based 
on the operator's actual costs of providing the equipment to you. 
Operators may also sell equipment to you, with or without a service 
contract. If an operator provides a choice between selling and 
leasing the equipment, the monthly leasing rate will be regulated but 
the sales price will be unregulated. If an operator only sells 
equipment and does not also lease equipment, then the sales price 
must be the actual cost of the equipment plus a reasonable profit, 
and any service contract should be based on the estimated cost to 
service the equipment. If the customer buys the equipment but does 
not purchase a service contract, the customer can be charged for 
repairs and maintenance. Cable operators may not prevent customers 
from using their own equipment if such equipment is technically 
compatible with the cable system.

The rules require that charges for converters, remote controls, 
connections for additional televisions, and cable home wiring be 
listed separately on your bill. If you have a question about the 
rates your cable operator is charging for equipment, you should 
contact your local franchising authority.

--------------

At that point in time, the FCC was trying to work out the details of 
how the shift to digital television would impact the cable industry 
and the consumer premises equipment that would be needed. This was 
going on in parallel with the ACATS process, so we (myself, Gary 
Demos, and several people from groups at MIT) had the opportunity to 
work with the staff at the FCC to help them understand the issues and 
what would be required. For those who are interested, the following 
.pdf document written by Joseph Bailey of MIT provides significant 
insights to the issues that were being considered at that time.

http:itc.mit.edu/rpcp/Pubs/settop_mkt/settop2.pdf

Given the pending changes in technology, the FCC chose to focus on 
digital cable boxes, as there appeared to be little interest among 
CEA members to go after the Analog STB market. The 1996 
Telecommunications Act expanded the FCCs role in this area, requiring 
the FCC to develop regulations to open the market for set-top boxes 
for cable systems. The pertinent portion of the legislation is 
provided below:


CABLE EQUIPMENT COMPATIBILITY- Section 624A (47 U.S.C. 544A) is amended--

(1) in subsection (a) by striking `and' at the end of paragraph (2), 
by striking the period at the end of paragraph (3) and inserting `; 
and'; and by adding at the end the following new paragraph:

`(4) compatibility among televisions, video cassette recorders, and 
cable systems can be assured with narrow technical standards that 
mandate a minimum degree of common design and operation, leaving all 
features, functions, protocols, and other product and service options 
for selection through open competition in the market.';

(2) in subsection (c)(1)--
(A) by redesignating subparagraphs (A) and (B) as subparagraphs (B) 
and (C), respectively; and (B) by inserting before such redesignated 
subparagraph (B) the following new subparagraph:
`(A) the need to maximize open competition in the market for all 
features, functions, protocols, and other product and service options 
of converter boxes and other cable converters unrelated to the 
descrambling or decryption of cable television signals;';

and (3) in subsection (c)(2)--
(A) by redesignating subparagraphs (D) and (E) as subparagraphs (E) 
and (F), respectively; and (B) by inserting after subparagraph (C) 
the following new subparagraph:
`(D) to ensure that any standards or regulations developed under the 
authority of this section to ensure compatibility between 
televisions, video cassette recorders, and cable systems do not 
affect features, functions, protocols, and other product and service 
options other than those specified in paragraph (1)(B), including 
telecommunications interface equipment, home automation 
communications, and computer network services;'.

This is how the FCC got into the middle of the battle to open up the 
markets for Cable STBs.

 From this point the FCC started putting pressure on the CEA and Cable 
industry to develop open standards for cable STBs. Cable Labs created 
the OpenCable initiative to set these standards, and the FCC 
continued to prod the CEA and cable industry to work this out, rather 
than the Commission setting technical standards. The rest is history, 
as the FCC blessed the agreement between the CEA and Cable industry 
regarding one-way cable compatibility. But the foot dragging 
continues, as the CEA and Cable industries are still trying to work 
out the technical specs for two-way compatibility.

So bottom line, I guess you can say that the cable industry has been 
just as involved in the openCable initiative as they were in the ATSC 
standard. They let the industries work out the details, rather than 
taking the lead and  developing both the Digital Broadcast and 
OpenCable standards.

Having been in the middle of this, I can say with some degree of 
credibility that this has delayed the DTV transition by at least a 
decade, while significantly increasing the complexity of digital 
television systems. Unfortunately, there is no one to blame at the 
FCC, since this mess has been allowed to fester by three FCC Chairmen 
and a long list of Commissioners, each of which has been placed in 
the unenviable position of trying to prop up the bad decisions made 
by their predecessors.

Hope this helps...

Regards
Craig
 
 
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