Public Interest Groups Ask FCC Reversal on Set-Top Boxes

Six public interest groups asked the Federal Communications Commission to stop the cable industry from effectively locking consumers into low-cost, low-function set-top boxes, a move which would frustrate the Congressional intent of having a wide variety of more sophisticated devices available. On June 1, the FCC granted permission to set-top box manufacturer Evolution to manufacturer boxes for the next 3 years that do not use CableCard or other "common reliance" technologies on condition the boxes remain "low capability," i.e., without capability to provide HD, PVR or Internet access. Within two weeks, four major manufacturers filed for similar waivers for "limited capability" devices. The groups -- Public Knowledge, Free Press, Media Access Project, New America Foundation, Open Technology Institute and U.S. PIRG -- said that the flood of waiver applications shows that manufacturers and cable operators intend to flood the market with proprietary boxes tethered to each cable system to undermine the development of a common standard that would permit a market of "cable ready" TVs and consumer devices for digital cable systems to develop: "Furthermore, substantial incentive exists for such behavior as well - if cable operators can offer "low cost" devices to their consumers that can handle a broad range of cable features, they can discourage the growth of non-integrated devices and other competing means of using cable service, ultimately limiting consumer choice and allowing them to raise prices and increase lock-in.