FCC Releases Small Ops' HD-Waiver Order
Small cable operators get three-year exemption from FCC rules requiring 
cable operators to carry TV stations' HD signals in HD after Feb. 17, 2009.

By John Eggerton
Broadcasting & Cable

9/4/2008 4:28:00 PM

http://www.broadcastingcable.com/index.asp?layout=articlePrint&articleID=CA6593127


The Federal Communications Commission released its order granting small 
cable operators a three-year exemption from FCC rules requiring cable 
operators to carry TV stations' HD signals in HD after the Feb. 17, 2009, 
transition to digital.

In 2001, the FCC, to avoid "material degradation" of a broadcaster's signal 
on cable and the potential for competitive gamesmanship, ruled that a cable 
"operator may not provide a digital broadcast signal in a lesser format or 
lower resolution than that afforded to any digital programmer." This meant 
that if a cable operator carried a cable HD channel in HD, it could not 
downconvert a broadcaster's HD signal.

The FCC concluded that the HD-carriage requirement would be a hardship on 
smaller operators, which asked for the relief. The American Cable 
Association, which represents small and midsized operators, argued that the 
requirement could lead to price increases or even drive some systems out of 
business.

The FCC defines the small systems getting the waiver as those with 2,500 or 
fewer subscribers, so long as they are not affiliated with a "large cable 
operator," or those with channel capacity of 552 megahertz or less.

The FCC clarified that the viewability rule does not require cable 
operators, large or small, to carry a standard-definition digital signal as 
well as an analog signal to satisfy the "no material degradation" element 
because both the standard digital and analog signals have the same resolution.

But it also reiterated that both large and small systems would have to 
carry the SD signal as well as analog if there were digital subscribers who 
would otherwise not get a viewable signal.

The FCC declined to make must-carry broadcasters pay for the cost of 
downconverting their digital signals to analog for smaller cable operators' 
analog customers.

"The ACA thanks chairman [Kevin] Martin for his efforts and leadership in 
adopting this reasonable exemption and granting much needed relief," ACA 
president Matt Polka said in a statement Thursday. "This exemption is a 
reprieve to thousands of cable-system operators that had neither the extra 
bandwidth nor the budget to comply with the digital-must-carry obligation."


=================================================
George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         

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