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The FCC rejects Comcast's appeal to be exempt cable regulations

The FCC is taking a bigger stance in the cable industry than previously expected. Starting on July 1st, 2007, cable service providers who also sell set-top boxes will not be allowed to directly link (PDF) the set-top boxes to service operators. In a nutshell, third party set-top box manufacturers -- including Cablevision, who filed motion for the request -- will be allowed to sell devices for customers who already have cable, a process that was previously impossible due to the proprietary nature of existing set-top devices.

Comcast tried to appeal an FCC decision on the new regulation, asking the FCC to exempt it from the regulations on July 1st. The FCC turned down Comcast's request, claiming "The Bureau denied Comcast’s request for a permanent waiver from the integration ban
but granted Comcast leave to file an amended waiver request. Comcast's permanent waiver
request, if granted, would exempt a vast majority of the set-top boxes being placed into service today and in the future."

According to the FCC, the new regulations will help open the playing field for set-top box makers and cable providers as well. The regulations will also help those jumping on the CableCARD bandwagon. Once the regulations kick in, all set-top boxes shipping after July 1st will be open to any CableCARD from any service provider in the U.S. Previously, users were concerned with the CableCARD standard and how it would affect their ability to change boxes or service providers.

The new FCC ruling will not only open the doors for companies wanting to produce set-top boxes, but also for TV manufacturers who want to integrate CableCARD options into their TV sets. Many consumers feel the pinch when they are required to purchase or rent a CableCARD tuner while also paying fees for a set-top DVR box.

With Comcast's appeal thrown out the window, the company called the FCC ruling "regrettable," and said that if the FCC allowed more companies to make set-top boxes, it would only cause consumers to spend more. Of course, Comcast has a strong interest in protecting its market-share. The National Cable & Telecommunication Association, the industry lobbying group that supports Comcast and other service providers, said that consumers will pay roughly $600 million USD more per year for CableCARDs -- averaging about $2 to $3 per card.

Despite complaints by Comcast and other cable providers, FCC chairman Kevin Martin said that the cable industry is the only market where the FCC regulates but prices continue to increase from the providers. Yet Comcast argues, saying that "the rejection of this waiver means millions of American consumers won't have the opportunity to enter the age of digital television easily and affordably."

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About time!
By Captain Orgazmo on 1/15/2007 8:51:52 PM , Rating: 2
I hope this ruling will be duplicated in Canada, because where I live, one cable company has a complete monopoly, and they charge ridiculous amounts for set-top tuners ($300 for a regular one, $800 for HD). Hopefully this opens up the market to some competition in the USA, and follows into Canada (especially when all analog NTSC broadcasts and cable signals are ceased in 2008).




RE: About time!
By neezee on 1/15/2007 9:08:37 PM , Rating: 2
must be rogers or shaw


RE: About time!
By Captain Orgazmo on 1/15/2007 9:19:35 PM , Rating: 2
Yep, one of the two monopolies on cable in this country... I'm in Alberta, so that narrows it down. The also have a handy monopoly on cable internet here (I don't know if it's the same in the east).


RE: About time!
By jmunjr on 1/15/2007 10:11:35 PM , Rating: 3
So you mean a duopoly...


RE: About time!
By Captain Orgazmo on 1/16/2007 1:44:28 AM , Rating: 2
Heh, yes. But in the way that the two companies do not compete directly with each other in the same territory. A consumer in a given area has only one choice for their cable provider (in the vast majority of the country... they may have some overlap, but I speak in generalities).


RE: About time!
By PrinceGaz on 1/16/2007 7:23:50 AM , Rating: 2
Rather like NTL and Telewest were the two cable providers in the UK, but in any given area only one of them were available. Therefore it hasn't really made any difference since they merged and now have just the one cable provider in the UK.


RE: About time!
By dice1111 on 1/16/2007 11:53:57 AM , Rating: 2
There is no overlapping. Roger's has the east, and Shaw has the Prairies and the West locked down tight. I'm a former employee of Shaw actually. Shaw's monoply extends From BC all the way to Thunder Bay and Sault St. Marie in Ontario. Roger's has the rest.


RE: About time!
By MrDiSante on 1/16/2007 7:01:13 PM , Rating: 2
And Bell and Telus own virtually all phonelines except Saskatchewan. So when it comes to internet you can either get Bell/Rogers or someone who rents their lines if you live in the east or Shaw/Telus or someone who rents their lines if you live in the west. Fun choice we have up here, isn't it?


RE: About time!
By dice1111 on 1/22/2007 11:11:15 AM , Rating: 2
I believe MTS does have a majority of the telco lines in Manitoba. (at least I think so, as their servies [not baring reception, which is good as long as your in MB] suck and their still in business). But Roger's and Telus are both huge competitors here.

Can anyone tell me if indeed MTS does own the lines here in MB?


RE: About time!
By GTMan on 1/16/2007 12:39:59 AM , Rating: 2
Also, hope that the competition brings improved quality to the boxes. I have read quite a few complaints about boxes not properly recording shows to the internal HDD.


Will this effect DVRs
By bmheiar on 1/15/2007 11:21:59 PM , Rating: 2
Just curious will this effect DVRs? In meaning, at the moment you can only get a DVR (like a SA-8300HD) thru a cable/satellite provider by paying for the Digital service and then renting the DVR to use it. For it to be linked and hooked up to their service, so that it senses that it is connected to them (the handshake). You can not purchase an actual DVR outright in a retail store, unless going to a DVD Recorder with HDD, but the interactive TV guide features are different and many DVD Recorders with HDD have problems with this feature along with other issues. If you are able to get a DVR (the above mentioned SA-8300HD) like from eBay, if you call the cable/satellite provider to have activated and hooked up to their systems (the handshake), they refuse to activate it. Saying that is it an illegal or stolen equipment, and that you have to pay for Digital channels and rent the equipment from them to be able to use it. I personally would like to get a DVR (to replace my VCRs) just to record standard analog channels (not going to Digital channels until price comes down equal to what standard channel packages are now or less), but I do not like the idea of having to pay for Digital channels just to get a DVR and then have to rent the DVR on top of that. Maybe it is because of the copyright laws dealing with the recording digital signals. But I don't want to record digital signals, just analog signals just like a standard VCR does. I do not want a media PC, I just want a DVR to replace my VCRs, so where I can remove them completely. You do not have to pay rental fees or go to a higher more expensive channel tier to be able to use and record with a VCR. Maybe what I want to do, is impossible. But am I the only one, alone, in wanting to do this. I am just asking a question if this decision will effect DVRs and usage without having to pay rental fees and being forced to go to digital channels, just to have a DVR to record standard analog channels?




RE: Will this effect DVRs
By Lazarus Dark on 1/16/2007 9:00:46 AM , Rating: 2
Umm, they have had dvr's for analog for quite a while now. Heard of tivo? It requires a subscription, but there are others that do not. Some can just be programmed for specific times like a vcr, others can connect to your router and use titantv and other free guide services. All on basic analog signal. Just search bestbuy.com and the like for 'dvr'. Some high end tv's even come with a built in dvr. Not to mention, with a 50 to 100 dollar pci tuner card, you can use your computer as a dvr for analog cable.

But there is no future in these. Eventually, the cableco's will go all digital because currently analog channels are a huge waste of bandwidth and keep our internet speeds low and also prevent them from adding more hd channels. This article is about the cableco's now having to accept your ebay dvr and having to provide digital service to your personally owned digital cable set top box.

By the way, that ebay cable box is most likely stolen and the cableco's will no doubt share a list of stolen box's serial numbers and will know it is stolen as soon as they connect to it. They will not provide service to your stolen box even if you bought it off ebay and didn't steal it yourself. They may even alert the local police or the original box's owner and you may get sued for the cost of the box. Lesson to learn: Dont get a digital cable box from ebay! Ever. Not even after this decision from the fcc.


RE: Will this effect DVRs
By othercents on 1/16/2007 1:07:05 PM , Rating: 2
Hopefully this actually will start allowing computer manufacturers to add CableCard technology into computers. I would love to see a CableCard addon for the computer. I already have the computer hooked up to the TV, but instead of having a separate DVR connected I could just use my computer to do everything. This would also allow me to record more shows especially if I upgrade the harddrive.

Other


Not to mention
By encryptkeeper on 1/16/2007 9:27:16 AM , Rating: 2
Also, opening cable to other developers means more innovation in the industry. I'm tired of seeing huge cable packages with crappy channels.




RE: Not to mention
By jondevelops on 1/17/2007 2:23:48 AM , Rating: 2
Tell me abou it. These cable companies are greedy and selfish. Imagine if they ever get to set up internet tolls. That disaster will be just in time for the integration and cable TV and the net.


Good to open standards.
By theapparition on 1/16/2007 7:36:20 AM , Rating: 3
The very fact that comcast opposed this legislation means its a good idea.

With comcast having record profits for 2006, they raised rates for 2007. I knew it was coming, but was shocked when I got the bill. Cable rates went up 5% (not terrible, but..) but the DVR fee went up over 60%, from 9.95 to 16.15. My wife is hooked on the DVR funtionallity and hated the idea of giving it up. I was waiting for FIOS in the area but its 3-6mos away, and to be quite honest this was the proverbial "straw that broke the camel's back". So I did the research, selected DishNetwork (over DirectTV) and it was a pleasure to call comcast and cancel.

When asked my reason, my reply was "Comcast is a bunch of greedy pricks". Their response, "Oh, we can also bundle your phone and save your $XXX per year." (yeah, like i'd trust comcast with my phone.......). "Wait, we just started this new package, it's not advetised but I am authorized to offer it to you........" Then here comes the deal.

Short version.....cable bill went from $146/mo down to $92/mo. That includes all channels, HD, HBO, Showtime, Stars, Cinemax, and TMC. One DVR, and I demanded 4 more HD boxes (no charge) and of course HS internet.

This is actually a pretty good deal. Only catch, the price is only good for a year. After that, I'll see what's being offered in my area. Point is, if you threaten to cancel, you can get a good deal.....I'm just pissed because they want to price gouge any consumer who doesn't have the mind to ditch them.

Still, even though its a good deal, I was still sad not to kick comcast to the curb. It's like that girlfriend who is overpriced and you really don't like anymore, you finally work up the courage to break it off, and then she gives you a sob story and you cave. Your still together, but things are never the same.




It's about time!!!
By murray13 on 1/15/2007 11:15:21 PM , Rating: 2
It's about time the FCC did something about the stranglehold the cable companies have on consumers! In my situation every TV that you want to watch HD on you HAVE to rent a cable box @ $6.95 per month. If you want to add DVR it is $9.95 for the box and $4.95 for the service. While my cable provider does rent cable cards they have limited function. No program guide, no HD, no onDemand. I would love to be ABLE to buy a big LCD/Plasma/OLED/SED display with a cable card slot and be able to get rid of that darn cable box! With ATI/AMD coming out with a cable card for the PC it would be nice to have full functionality on a HTPC. I would gladly pay a rental charge of say $4.95 a month to be able to watch HD on ALL my televisions without the need for a seperate box.

This would also open up a market that currently is closed to only a select few. Of course the cable companies are going to say it will cost consumers $600M but they fail to say that it will cost the cable companies an equal amount in lost revenue from people not having all those boxes.

I want the choice! Maybe I want to be able to put a HTPC close to every tv set I have. Cable companies don't want that because they don't control it. That is the reason they don't want this to be over them.

It's just like when the phone industry was deregulated/broken up. All of a sudden you had a lot of innovation in phones, a real choice. You can have whatever type of phone you want, not only a choice of color. Did the phone company lose money, NO they are making more. It will be the same for the cable industry. More choice, more innovation, better prices, consumers win! No it won't be over night but it will happen.




By encryptkeeper on 1/16/2007 9:25:52 AM , Rating: 2
Since when did the basic rules of economics go out of the window when it comes to cable? Ever since cable became deregulated in the US, the price has increased 100% or more for most subscribers. Sure, you have a few advances like more channels and HD channels but the reality is if you have 800 channels to choose from, 40 of those might be worth watching. And out of those 800 channels, right now you might have 8-10 true HD channels. And isn't it funny that the industry that is trying to keep everything closed from other developers gets to have the sole voice in saying what is fair payment for cable?




"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook









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