Free, Over-The-Air Video Programming Should Remain Focus Of DTV Transition, Says CEA

New Services Should Be Encouraged But Must Not Interfere With Primary Goal Of Providing Free TV

20-Jun-00

Ensuring that today's viewers continue to enjoy free, over-the-air service should be the primary focus of the digital television (DTV) transition, said the Consumer Electronics Association (CEA) in comments filed with the Federal Communications Commission (FCC). While new services should be ""permitted and encouraged,"" argued CEA, they should be consistent with broadcasters' ""continued delivery of free over-the-air programming in the digital era.""""Broadcasters should have the freedom to invest in and provide new services to viewers such as datacasting and interactivity,"" said CEA President and CEO Gary Shapiro. ""Indeed, our research shows consumer interest in these functions. But these potential new services must not prevent or inhibit consumers from receiving free, over-the-air programming in the digital age nor should these services be used as a foil to push non-compatible changes to the DTV transmission standard or otherwise delay the transition.""In its comments, CEA also reiterated its opposition to modifying the existing DTV transmission standard, arguing that doing so will create uncertainty and delay in the marketplace ultimately harming consumers. CEA expressed its confidence that current testing of the FCC-approved 8-VSB modulation standard - if fair and objective - will reveal yet again that the standard is suitably robust for broadcast television, noting that there is no consensus nor valid reason to consider to modify or replace the current standard.""Our members also have indicated to us that the standard is capable of accommodating changes in order to meet new needs as they are identified, and doing so in a fully backward compatible manner,"" wrote CEA. ""Clearly,"" CEA continued, ""use of the extensible features of the DTV standard to meet new needs is far superior to adopting a new non-compatible standard. Introduction of a non-compatible standard would harm consumers by dividing the broadcast marketplace, impairing the utility of existing receivers, and increasing the cost of all new receivers.""CEA went on to question the motivations of Sinclair Broadcasting, the principal champion of modifying the existing standard. CEA noted that Sinclair's financial interest in broadcast transmitter manufacturer Acrodyne Communications Inc. raises serious questions regarding the company's misinformation campaign regarding 8-VSB. CEA specifically pointed to a press release from Acrodyne, quoting from the release in its FCC filing, ""The delay in conversion from analog to digital has given [Acrodyne] the opportunity to reposition the company from a niche to a mainstream supplier of transmission equipment and servicesÖ """"Of course,"" CEA pointed out, ""the press release fails to disclose that the delay in the DTV transition that created this business opportunity for Acrodyne and Sinclair, is being spearheaded by Sinclair through its anti-VSB campaign.""If successful in repositioning and reviving Acrodyne's analog transmitter sales, it appears that the delay and confusion in the DTV transition will be of great financial benefit to Acrodyne and Sinclair.""CEA also rejected calls for the FCC to impose DTV receiver standards or require DTV reception capability in all television receivers. ""A thorough review of the existing statutes clearly indicates that the FCC lacks the authority to mandate receiver performance standards,"" said Shapiro. ""The FCC itself has consistently echoed this belief as well. The Commission has wisely recognized that manufacturers will be driven by market-forces to make available to consumers digital receivers that receive both NTSC and digital signals correctly refusing to 'preclude equipment manufacturers from designing digital receivers that do not receive NTSC signals.' We urge the Commission to retain this position.""The Consumer Electronics Association (CEA), a sector of the Electronic Industries Alliance (EIA), represents more than 600 U.S. companies involved in the development, manufacturing and distribution of audio, video, mobile electronics, communications, information technology, multimedia and accessory products, as well as related services, that are sold through consumer channels. Combined, these companies account for more than $60 billion in annual sales.CEA also sponsors and manages the International CES - Your Source for Workstyle and Lifestyle Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.