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.'"
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.
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"
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.
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.
... 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.