CableCARD Waiver Seekers Advised to Say Why Breaks Justified
Companies seeking CableCARD waivers should explain how it would help consumers if they get a break, said aides to FCC Comrs. Adelstein and McDowell. Cable operators may have to show that unless they get waivers they'll have to charge more or explain why private solutions won’t work. McDowell thinks companies’ agreements, not an FCC rulemaking, are the way to address concerns over a July 2007 deadline for banning integration of set-top box navigation and security, said media adviser Cristina Pauze. Pauze’s counterpart in Adelstein’s office, Rudy Brioche, said cable should focus on the ban’s consumer implications. The officials spoke Tues. at a Cable TV Public Affairs Assn. (CTPAA) conference.
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McDowell is inclined not to intervene, Pauze said, adding that she was speaking of waivers in general, not any of the dozen or so requests received by the Media Bureau. “His hope is there will be more of a private sector solution to this,” Pauze said: “I think that would work out better for everybody.”
Show how the ban would affect customers’ bills, said Brioche. “Cable really has to make the case… about how this set top box waiver could affect prices,” he said: “In that context, I think it would be prime time for the FCC to deal with, at least on the 8th floor.” According to CEA, the integration ban won’t harm cable, since all operators have gotten several deadline extensions. In filings Mon., CEA asked the FCC not to give waivers to cable operators Armstrong Utilities, Atlantic Broadband, Bresnan, Orange Broadband, NPG Cable, Suddenlink and Sunflower Broadband.
The integration ban unfairly burdens cable operators, NCTA officials told CTPAA. The ban has “no consumer benefit whatsoever,” NCTA Deputy Gen. Counsel Diane Burstein said, calling it a “really a unique expense that’s being imposed on consumers.” NCTA Pres. Kyle McSlarrow was more pointed in his remarks. “The FCC should stay out of the technology mandate business,” he said: “This is a fairly antiquated rule.”
CableCARD waivers were among the media issues raised at Wed.’s House Telecom Subcommittee hearing (see separate report in this issue). The American Cable Assn. (ACA) lauded Reps. Doyle (D-Pa.), Radanovich (R-Cal.) and Deal (R-Ga.) for bringing up the issue at the hearing. ACA said the FCC integration ban “will increase rates to consumers and raise equipment costs for smaller cable providers.” CEA contends that concerns about CableCARD expenses are overblown. Compliance will cost less than $1.25 a month, based on a $40 retail price estimate for a CableCARD, a CEA spokesman said, calling that “a far cry from the usurious rental rates currently charged by the cable companies… Any price differential will be driven to zero as competition empowers consumers.”
Commissioners haven’t ruled on waiver requests, which are being handled by the Bureau and Chmn. Martin’s office, said Brioche and Pauze. McSlarrow slammed Martin’s stance on waivers. “He’s not been easy,” McSlarrow said. Martin’s office hasn’t asked Adelstein where he stands on CableCARDs, Brioche said: “We really haven’t had a chance to review the set top box waivers.” His comments indicate Comcast’s request isn’t circulating on the 8th floor. After a Jan. 10 Bureau denial of its request, the company appealed to all FCC members. “There’s a Comcast petition that may be our first chance to consider it,” Pauze said.