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FCC Opens Market for Cable Boxes

fistfullast33l writes "The FCC rendered a decision today against a Comcast appeal that centers on integrated security features in set-top cable boxes. The decision comes at the end of a long standing feud between the FCC and cable companies over the matter. The result is that starting July 1st, cable boxes distributed by cable companies must not be tied directly to a cable provider via internal security features. This rule is viewed as the first step in creating a market for set-top cable boxes. Comcast does have the right to appeal and has said they will do so. From the article: 'Several major consumer electronics manufacturers have argued that if set-top boxes weren't directly linked to the provision of cable service, they could enter the set-top market. Consumers could get a cable card from their service provider that they could insert into a set-top box purchased at a consumer electronics store. The cards would ensure that consumers could only access channels that they paid for.'"

8 of 222 comments (clear)

  1. step one... by User+956 · · Score: 4, Insightful

    The result is that starting July 1st, cable boxes distributed by cable companies must not be tied directly to a cable provider via internal security features.

    Now if only they could accomplish this same feat for mobile phones.

    --
    The theory of relativity doesn't work right in Arkansas.
    1. Re:step one... by troll+-1 · · Score: 4, Insightful

      Now if only they could accomplish this same feat for mobile phones.

      Be thankful cell phone companies aren't running the Internet. If they were you'd buy your computer from your ISP and it wouldn't work with any other ISP. Your equipment would come with Internet access but no email, that would be extra. If you wanted an email sound alert, you could always 'shop for sounds'. Access to overseas sites would be charged at a higher rate and your ISP bill would list every site you visited that month. Cell phone providers pay billions in license fees to the FCC for the privilege of being able to nickel and dime you for every trivial service they can think of.

    2. Re:step one... by duranaki · · Score: 4, Interesting

      i heart you.

      i worked for nokia for nearly 10 years in r&d for cell phones (cdma) and grew to loathe operators. in the u.s. they completely control the distribution because of subsidies and refusal to activate other phones claiming, "they don't work on our network." they ignore usability and force handset makers to jump through hoops designing phones essential on spec (if you put in these features, remove your name from the device, and pretend we invented all the technology maybe, just maybe, we'll put some in our stores.) ugh i hate them! it's all coming back! damn you operators!!

      p.s. i also blame the fcc, because hell they do everything wrong. i love those billion $ license fees which guarantee that only big monopoly companies can enter the market place.

  2. Re:Appeal? by eclectro · · Score: 5, Insightful

    approximately what the percent chance Comcasts appeal will work?

    It's directly proportional to the wad of cash they give a senator. The FCC doesn't understand technology anyway. Also, consumers are too dumb to be able to make choices for themselves.

    --
    Take the cheese to sickbay, the doctor should see it as soon as possible - B'Elanna Torres, "Learning Curve"
  3. Re:Doesn't this already exist... by SeaFox · · Score: 4, Insightful
    Don't higher end TVs have "integrated digital cable tuners" where you put a card in and be able to receive the digital channels? From my understanding, the only thing you'd be missing is the "special" services from your cable provider, mainly guide information.

    Current CableCard technology is one-way only. So you can't order PPV or control VOD programming. CableCard 2.0 is supposed to support two way communication, but it isn't out yet. It also will be a different card interface. So if you bought a TV that includes a CableCard slot, guess what, you have to buy a new TV to use the 2.0 cards.

    Also, cablecos are not yet required to offer CableCards yet. The FCC's plug and play rule that covered it does not take effect until July. So if your cableco currently does not want to offer CableCards, you're SOL.

    I'm not sure what the ownership rules are for CableCards, but from what I've seen it appears they are still the property of the cableco and you still pay a monthly fee for them (you just don't have a big, hot running box to keep around).

    If this rule is allowed to take effect (translation: a bunch of cableco lobbists don't pop up and stop it) soon hooking up digital cable will be as easy as hooking up analog cable. The converter box can be built into the TV the same way we transitioned from having to get a box from the cable company twenty years ago to having "cable ready" TV's. It would help clear the way for people to not have to pay "per box" for their service. DVR recorders can be built that can tune all the channels themselves.

    I think this is fabulous, it's a step to reversing the nickel and diming cablecos and the entertainment industry as a whole have been doing the past ten years.
  4. Re:What about sattalite? by Quarters · · Score: 4, Informative
    It's not a double standard at all. Cable companies and Telco's operate under the idea of regional monopolies. Local/State governments give providers monopolistic contracts to service an area to entice the provider to come in and create the necessary infrastructure. I can't get anything other Insight Cable where I live. The same is true, but with different providers, for the majority of the country. The set-top box with DVR that Insight offers is F'ing abysmal. It's about as programmable as a VCR. Other than an over priced Series 3 TiVO with an extra monthly charge I have *no* choice in how I can receive and record Insight's digital/HD programming. Due to Insight's approved local monopoly I am stuck with their crappy system if I want to subscribe to their service.

    Satellite services don't operate under the same monopoly based business model. Space is open to whomever has the cash to toss a ton of satellites up there and start providing signal. I can freely choose from Sirius or XM for my radio and Dish or DirecTV for my video. If I don't like the channel lineup or available hardware for one I can always sign up with the other service.

  5. No different than AT&T decision... by Constantin · · Score: 4, Informative

    ... many years ago, it was illegal per AT&T to attach anything but AT&T-approved equipment at home or in a business alike to their network. Eventually, the anti-trust folk, PBX equipment vendors, etc. broke up that racket, IIRC. At the time, AT&T made dire predictions about network reliability, etc. if "non-approved" devices were attached to it. In the end, it was clearly a rear-guard action designed to maximize the lease-money that AT&T was deriving from equipment rentals. This Comcast rethoric is no different, they want to lease a $30 cable box for $4 month ad infinitum.

    So, I would very much welcome a requirement to open up the the consumer choices with regard to cable boxes. Ideally, someone at the FCC will have the foresight to look to the EU or other places that have already gone through the trouble of designing a secure option and require an "open" standard instead of allowing content providers to reinvent the wheel yet again to create a NA-only product. While cable-boxes are definitely not as portable as let's say cell-phones (and hence will not derive as much value from being interoperable), economies of scale definitely apply in this business and the more competition, the better for the consumer.

    Plus, interoperable product ensures that if cable content providers ever get competition, that cable boxes don't get discarded simply because provider X has a different encryption scheme than vendor Y. Besides the unnecessary lock-in at the set-box level, I would also like to see a requirement by the Feds to allow consumers and content providers to chose their packages à la carte (i.e. disallow bundling requirements). This is the only means of breaking the oligopoly of the content providers and to restore some semblance of consumer choice to the market.

  6. Re:Good by virtual_mps · · Score: 4, Interesting

    Now, another way to look at it from the Cable company. These "special" features that the box you buy. Why would they support these features? Why would they? My device's features are between me and the manufacturer. All I want from the cable company is a feed.

    Would the software "at" the cable company work with features of say box, a b and c box? I don't care/want it to. I just want a feed.

    The software at these cable companies is specialized. I should know, I work in tech support at one. There is now way in hell that they will support a box they do not provide unless the manufacturer of said box releases the information required. Simple. You'd think it would be simple, but the cable companies don't seem to understand that I don't want their lousy software or their lousy support. All I want is a feed.

    The customer will get referred to the manufacturer. I wish I had that option. That's really all I'm looking for--the possibility of buying a better product than the one the cable company is pushing, that comes with better support.

    Another thing, say you spend $300 on a box and spill coffee in it. You buy a new one. If you had OUR box, it gets replaced, free. Same as the cable modem.. you're takes a crap, you buy another one, we will replace it free. I really don't see any cost savings here. First, what the hell do you do to your equipment? I have never spilled coffee on my TV. Never. Not once. Nobody in my family has. Ever. I'm willing to risk it, if the cable company wasn't so determined to gouge me and would actually give me that option. If you don't see the cost savings over owning versus buying you need to go back to school. (If I was getting regular upgrades to the hardware for my monthly fee maybe there'd be a better argument for renting--but we all know that an STB with extra functionality is also going to have a higher fee associated with it. And lets face it--if people were really destroying their STBs on a regular basis the monthly fee would simply be high enough to ensure that they pay for the boxes faster than they break; the cable companies are making quite a healthy profit, and can do the math easily enough to know that this "breakage insurance" isn't happening enough to actually cost them anything significant.)

    Plus feature wise, you'll lose out.. at least as far as our VOD and such. (video on demand) I don't want your lousy VOD. I haven't wanted it for the last 15 years that the cable company has been trying to foist it on me. All I want is a feed; my interest is in watching TV, not in improving your profit margin. (sorry) My solution, after I got fed up with overpriced, low quality, lousy service was to just cancel my cable subscription--but I'm lucky enough to actually be able to get a decent OTA signal; I pity the people who can only get TV though the cablecos.