CEA Expresses Disappointment With Cable Industry ""Retail Set-Top Initiative""

22-Oct-01

True competition and consumer choice remain thwarted despite cable industry announcements regarding retail availability of set-top boxes, according to the Consumer Electronics Association (CEA). CEA expressed disappointment in response to a ""retail set-top initiative"" announced by the National Cable & Telecommunications Association. CEA argues that the initiative promotes only proprietary set-top boxes, does not ensure portability of the set-top box from region to region and fails to incorporate any OpenCable specification to allow market access by competitive manufacturers.""The announcement doesn't come close to meeting the intent of Congress, which calls for the creation of a competitive retail market for cable set-top boxes,"" said CEA Vice President of Technology Policy Michael Petricone. ""Neither the spirit, nor the letter of the law have been met. The only change consumers will see is an extension of their cable monopoly to the retail store shelf where proprietary boxes with embedded security will fill every row. Under cable's plan, Americans will have no more product choice or portability when it comes to cable set-top boxes than they do today. The real harm is that cable consumers will still be deprived of the benefits of a competitive marketplace: more choice, lower prices and superior products.""In 1996 Congress adopted Section 629 of the Telecommunications Act in order to create a competitive retail market for cable set-top boxes and other ""navigation devices."" The Federal Communications Commission (FCC) delegated responsibility for devising specifications for retail manufacturers to CableLabs, a cable industry consortium. Some progress has been made, but the specifications required for a competitive retail market in cable devices have yet to be completed. ""The announcement today wholly contradicts the good faith efforts we've made with the cable industry to create open specifications for set-top boxes,"" Petricone continued. ""For consumers, there is a critical distinction to be made between the captive retail market proposed by the cable industry and the competitive retail market envisioned by Congress.""For more information about the CEA, visit www.ce.org.

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