POWELL SAYS DTV IS READY TO TAKE OFF
The DTV transition is nearing the “tipping point” at which consumer and industry takeup will accelerate rapidly, FCC Chmn. Powell said Fri. at CES in Las Vegas. But he said there still were some challenges, such as DTV must-carry and an agreement on 2-way interactive plug-&-play. CEA Pres. Gary Shapiro, who interviewed Powell, said the CEA believed the tipping point “has already been achieved.”
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
DTV had “banner year” in 2003, Powell acknowledged. He said the govt.’s role was to “push until we shove DTV to the tipping point.” After that, he said, the FCC’s role will be very limited: “We will stay vigilant and dynamic, but we're not the ones doing” the DTV transition. One of the industry’s greatest challenges is eliminating consumer confusion, particularly over standards and types of receivers, Powell said. He said he assumed one type of DTV receiver would “break out of the pack” eventually, and that would simplify consumers’ decisions.
In response to a question, Powell said the Berlin experience might have some lessons for the U.S., but said he doubted Congress would appropriate money to subsidize DTV receiver purchases for poorer people. Berlin’s govt. cut off analog broadcasting last summer by subsidizing DTV converter boxes. Powell acknowledged he “would love to see” such an accelerated transition in the U.S. because it would free analog TV spectrum for other uses.
That spectrum is “desperately wanted and desired by the innovation market,” Powell said. He said Wi-Fi was one of the great recent innovations because it “showed what wireless could do.” He said he awaited wireless technology to simplify consumer electronics: “I am committed to throwing the wires out of the house.”
On consumer electronics, Powell said the FCC was committed to providing more unlicensed spectrum: “We are not crystal ball technologists. We have to give opportunity to those who are.” The Commission has provided some unlicensed spectrum, he said, and “this year we will see what else is in the closet,” possibly including spectrum that can penetrate walls better. He noted, however, some spectrum licensing would remain necessary, and unlicensed fields need some rules. Powell analogized to driving: The govt. selects speed limits but not car models.
Even in unlicensed spectrum, the govt. does “have to protect against interference meltdown,” Powell said. “Smart” devices that adjust to interference can help, he said. “It means we don’t always have to repaint the lanes on the road.”
Intellectual property (IP) issues will remain` as long as new products are being introduced, Powell said, but the FCC “can’t act like this is something they've never seen before.” He cited IP issues raised by copy machines and the VCR: “Digital means a much better copy machine, but the fundamental issues are the same.”
The FCC will remain involved in plug-&-play issues because, like it or not, “the DTV transition is government industrial policy,” Powell said. “So a lot of issues become government issues in order to make the transition work.” He said the industry agreement on one-way plug-&-play was “terrific, but the work is by no means done.” Powell said industries should reach as much agreement as possible because that would narrow the need for FCC action, meaning “faster and more effective” regulation. If industries don’t agree, he said, “relying on a public policy power struggle is dangerous.”
The FCC has held off on a DTV must-carry decision, partly in hopes the cable and broadcast industries would agree, Powell said, but time was running out: “Having an answer on must-carry is important.” He said industries had been less successful agreeing on DTV must-carry than on plug-&-play: “At some point we [the FCC] will have to barrel forward.”