NAB AND MSTV STICK WITH 8-VSB FOR DTV, REJECT MORE COFDM TESTS

FCC was considering order endorsing VSB, expected to be issued as early as this week, and industry officials speculated that broadcaster decision would clear way for order to be released, and possibly even strengthened. VSB creator Zenith immediately lauded NAB/MSTV decision as end of VSB/COFDM conflict. “Having lost at the FCC last year and now having suffered yet another stinging defeat, COFDM zealots should abandon the politics of obstruction and admit that their delay strategy has failed,” Zenith Senior Vp Richard Lewis said. “The VSB standard has been vindicated and, with this announcement, the industry can move forward with VSB enhancements.” CEA Pres. Gary Shapiro said broadcaster decision meant “the debate over the modulation standard is over” and broadcasters should “recommit” to DTV transition.

Board said its decision was taken following “oversight” of technical committees consisting of 25 engineers representing “all major technical viewpoints” to determine whether COFDM should be added to 8-VSB standard. At same time, board said there was “an urgent need for swift and dramatic improvement” in U.S. digital transmissions. NAB pledged to take “all necessary steps” seeking “rapid improvement of VSB technologies and other enhancements to digital television.” Board directed its staff “to develop a plan and promptly submit it” for approval.” While resolution didn’t mention FCC, broadcasters have been highly critical of that agency’s failure to take further actions.

Vote came after what was called “considerable discussion” of new COFDM field tests done over weekend by Sinclair Bcst., we're told. Sinclair said new tests showed that prefiltering COFDM receiver could significantly change outcome of tests. Just as it had done before last week’s summit in Washington (CD Jan 11 p2), Sinclair submitted new memo to MSTV and NAB boards before to Mon. meeting in Cal. raising 10 objections to endorsement of 8-VSB over COFDM. In memo, Sinclair recommended that another round of tests be held before decision was made -- citing obligation to smaller broadcasters who weren’t as “well-heeled” as member of DTV steering committee. They should “be given the maximum opportunity to compete and not be saddled with a standard that because of its lack of functionality may cause their ultimate downfall,” Sinclair argued.

At Sun. joint board meeting, NAB heard from Rep. Dingell (D- Mich), ranking minority member and former chmn. of House Commerce Committee. He reportedly urged broadcasters to get their act together and appear in Washington as one. (Note: Fox and NBC TV networks and owned stations aren’t members of NAB, withdrawing last year primarily over Assn.’s support of 35% cap on ownership of TV stations). NAB Pres. Edward Fritts told board that NAB was in great shape and had “a deep war chest and our projections for both near and long term are impressive.” Citing congressional scaleback on FCC’s LPFM plans in last-min. appropriations bill as “a huge win,” he said it showed “what can be accomplished when we speak with a loud and unified voice… Victories like this don’t happen often but they happen because we put our collective will behind a unified front.” To accomplish that victory, Fritts said, “we endured an FCC misinformation campaign and serious opposition from a well-known Arizona senator” (McCain [R.]).

As for incoming Bush Administration, Fritts said “we expect a lighter regulatory touch.” In House, he said “we can expect various coalitions… to hold the balance of power on many issues. And in the Senate, we can expect the actions of one senator to be more meaningful” because of 50-50 Senate split among Democrats and Republicans.

Board approved budget for fiscal year starting April 1 with expectations of just under $66 million in revenue, with expenses well below that. Of income, about 2/3 will come from April convention in Las Vegas, as has been case for last several years.