FCC Votes To Lift Ban On Digital Basic Tier Encryption

By: John Eggerton
Multichannel News

2012-10-12 16:02:00

Contains Three-Year Sunset on NCTA Commitment, But With Media Bureau 
Able to Extend It

http://www.multichannel.com/cable-operators/fcc-votes-lift-ban-digital-basic-tier-encryption/139766


The FCC is said to be wrapping up its order lifting the prohibition on 
digital basic-tier encryption.

Commissioners were said to be working on statements at press time and 
the chairman was said to be pushing to get the order out by end of day. 
According to a high-placed source, the vote will be 5-0, but with some 
concurrences.

FCC chairman Julius Genachowski circulated an order in August allowing 
cable operators to encrypt digital basic tiers that incorporated some 
accommodations for IP-enabled devices -- like Boxee -- offered up by 
cable operators to help secure passage of the item.

In a July 25 letter to the FCC, in response to complaints by Boxee and 
others about the inability of such devices to access programming on 
basic tiers once they are encrypted, the National Cable & 
Telecommunications Association said that it thought the concerns were 
misplaced, but that its six largest members would make a three-year 
commitment to ensuring those devices could receive a signal through one 
of two options, both pertaining to retail boxes.

According to a source familiar with the order, it does include a 
three-year sunset on that commitment, but allows the Media Bureau to 
extend it. That did not sit well with the Republican members of the 
commission, according to an FCC source, who thought that decision should 
have to be made at the commission lever. That was said to be one of the 
reasons there will be partial concurrences rather than unqualified yes 
votes. The other concern is over a severability clause that means if a 
court strikes down any portion of the FCC decision, all of it is 
invalidated and the ban would be back in force.

The commission signaled last fall it wanted to remove the ban, which 
cable operators had asked it to do.

The FCC adopted the rule prohibiting cable operators from scrambling 
digital basic tiers so that viewers with cable-ready sets would not have 
to buy or rent a set-top box. Now, because of the cost savings to cable 
operators, the reduction in pollution from fewer truck rolls, 
theft-of-service prevention, and the general lack of complaints in 
markets where the agency had granted waivers -- most prominently to 
Cablevision Systems in New York in 2010 -- the chairman signaled it was 
time to lift the ban.

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