FCC considering allowing cablecos to scramble the locals

[jayn_j]

From multichannel news. NCTA to FCC: Let All-Digital MSOs Encrypt Basic Tier - 2011-11-28 22:29:38 | Multichannel News

The National Cable & Telecommunications Association has urged the Federal Communications Commission to allow cable operators that have gone all digital to encrypt their basic tier.

That came in comments Monday on the FCC's proposal to do just that. "Given the substantial public interest benefits and the lack of harms associated with encryption, NCTA endorses the Commission's tentative conclusions and urges it to act expeditiously in amending its rules," according to the cable organization.

It added that allowing basic encryption would largely eliminate theft of service, promote innovation and investment, and reduce polution and fuel consumption by reducing truck rolls to activate or deactivate service (NCTA said Monday that the benefits would outweigh the minimal extra watts consumed by new boxes).

Cable operators also argued that the competition has no similar ban on encryption. "When the encryption rule was adopted in 1994, cable was the dominant MVPD, and there were few competitors," said NCTA. "The situation is dramatically different today. DBS and telco IPTV providers -- each requiring set-top boxes for each of their subscribers -- serve approximately 40% of the marketplace with all-digital service on a fully encrypted basis. Likewise, online video distributors deliver video to customers on an encrypted basis. Netflix alone has 23.8 million subscribers, more than any MVPD. None of these video providers is barred from encrypting or otherwise protecting the content they provide to their customers."
As Multichannel News first reported back in October, FCC chairman Julius Genachowski proposed allowing all cable operators to encrypt digital basic channels, given that the TV industry is going all-digital and that the move would had consumer, environmental and theft-protection benefits.

The commission officially voted Oct. 13 to propose that change and put it out for comment. "We tentatively conclude that allowing cable operators to encrypt the basic service tier in all-digital systems will not substantially affect compatibility between cable service and consumer electronics equipment for most subscribers," the commission said. The FCC has already granted several waivers -- most prominently to Cablevision -- and more are in the hopper from cable operators.

The FCC conceded there was an issue with consumers with basic-only digital who accessed it without set-tops, or second or third sets without digital boxes that would now need new equipment to unscramble a signal. It proposed adopting the conditions it put on the waiver it gave Cablevision to encrypt its basic service in New York.

Those conditions include requiring cable operators to offer "current basic-only subscribers up to two set-top boxes or CableCARDs without charge for up to two years, (b) digital subscribers who have an additional television set currently receiving basic-only service one set-top box or CableCARD without charge for one year, and (c) current qualified low-income basic-only subscribers up to two set-top boxes or CableCARDs without charge for five years." But it also asked whether this was adequate of whether the Cablevision time frames are appropriate.

NCTA had some tweaks to the language of those conditions, but said it had not quarrel with their substance.

 

[JWKessler]

Well, as a satellite subscriber that would be my last reason to maintain cable service. I use the cable system for Internet, and maintain basic cable so I can watch local channels without an antenna and get a few that I can't get with an antenna. Scramble the locals and I'll switch to DSL and save a few bucks in the process. The "free" box for a year is just to sucker people into paying for the box when the term is up.

 

[Neutron]

Encrypt everything but the local big 4 channels.

 

[mdonnelly]

I like the fact that I can get basic cable, and the local HD channels on my QAM tuner TV without a cable box. If they want to give me a box that will just unscramble basic cable and the locals to reduce cable theft, that's fine, but don't charge for it.

 

[jayn_j]

I like the fact that I can get basic cable, and the local HD channels on my QAM tuner TV without a cable box. If they want to give me a box that will just unscramble basic cable and the locals to reduce cable theft, that's fine, but don't charge for it.

Note it was f4ree for a limited period of time. The article quoted the cablecos as saying that additional outlets in a house were an additional source of revenue and a potential theft of service point. They want to make sure that every TV in every room is paying proper tribute, even for the delivery of locals.

 

[Neutron]

I can see Suddenlink (the local cable co at home) just watering at the mouth for this. A lot of people around here I that have cable I would venture just have basic cable with no box.

Suddenlink does install a video trap if you have just their cable internet like I do. No channels whatsoever.

 

[Mr Tony]

Comcast here in Minneapolis did that a year or so ago. They sent out these simple DTA boxes. A converter box about the size of 2 decks of cards. It gets the channels but no guide or anything

Lifeline is still ITC...hook up a TV with QAM and you'll get the locals/subchannels and the few freebies they give ya (WGN, TBS, CNN, shopping channels). Even get WGN-HD.

 

[CubsWin]

Since I am in a location that cannot get OTA reception, I would hate to lose my in the clear QAM locals. They are a great backup source when my Dish goes out and I refuse to install one of the Comcast converter boxes on each of my TV's. This could lead me to drop cable entirely, but I only subscribe to the Economy package anyway.