By David Hatch
(Wednesday, April 25) The cable industry blasted the FCC for endorsing what the industry considers to be a form of dual "must carry" -- a policy the agency previously rejected twice.
At issue is an item approved unanimously during an unusual evening meeting that seeks comment on ways to ensure that analog cable customers receive digital broadcast signals via pay television. Cable operators are worried that one idea under consideration amounts to an unofficial form of dual must-carry because it could result in carriage of both analog and digital versions of stations. Under existing rules, only broadcasters' primary channels must be transmitted.
Kyle McSlarrow, president of the National Cable and Telecommunications Association, complained in a statement that the FCC's proposal is a "completely unnecessary government intrusion into the marketplace." He added, "Worse, it is unconstitutional, as the FCC itself decided twice unanimously in 2001 and 2005."
But NCTA scored a modest victory after the FCC softened the item at the eleventh hour following a lobbying blitz by cable executives. They insisted that proposed regulations originally floated by GOP Chairman Kevin Martin are unnecessary, would reduce capacity and would prevent systems from adopting newer technologies.
Martin wanted operators to take one of two steps: outfit analog cable customers with digital boxes so they could view digital signals via cable or "down-convert" the channels to analog. The goal was to ensure that subscribers using analog TVs could watch local broadcasters via cable after stations convert to digital on Feb. 17, 2009.
As approved, the item only seeks comment without recommending rules.
The meeting capped a rollercoaster day at the agency. The meeting was originally scheduled for 9:30 a.m. but was postponed several times as the commissioners negotiated over a separate item involving the auctioning of spectrum that analog broadcasters must return to the government.
The regulators eventually voted 5-0 to approve guidelines for bidding on the 60 megahertz in the so-called 700-megahertz band that will be relinquished by stations. Those airwaves, to be auctioned by Jan. 28, are viewed as having exceptional propagation characteristics, making them attractive for offering nationwide, wireless, high-speed Internet service.
An additional 24 megahertz has been reserved for public-safety purposes to improve communications among emergency responders.
The agency adopted a mix of geographic-area sizes for the bidding to ensure that small and mid-sized companies can participate. The item also seeks comment on opportunities for public-private partnerships that could give emergency responders more frequencies and resources.
Also Wednesday, the commissioners voted to require retailers to include labels on analog TVs to indicate their limitations after the digital transition is complete in 2009. The agency now requires new sets to include digital TV tuners, but stores may sell analog models from existing inventory.
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