FCC Introduces Phase-In Plan for DTV Tuners

Washington, D.C. - The Federal Communications Commission (FCC)adopted a plan that will give consumers access to digital programmingover television by requiring off-air digital TV (DTV) tuners on nearlyall new TV sets by 2007. By enacting a five-year rollout schedule thatstarts with larger, more expensive TV sets, the FCC is minimizing thecosts for equipment manufacturers and consumers. This action marksanother step in the FCC's progress toward making the digital televisiontransition a reality.

The FCC said DTV receivers are a necessary element of broadcasttelevision service in the same way that analog TV receivers have beensince the inception of analog television service. Although analogreceivers are still dominant today, that will change as the transitionto digital TV progresses. The FCC said that its jurisdiction isestablished by the 1962 All Channel Receiver Act (ACRA), which providesthe FCC with the "authority to require" that television sets "becapable of adequately receiving all frequencies" allocated by the FCCfor "television broadcasting." The authority provided under the ACRAapplies to all devices used to receive broadcast television service,not just those used to receive analog signals.

The FCC said the plan reflects and accounts for the following:

-including DTV reception capability in new television receivers willrequire the redesign of product lines,

-prices are declining and will decline even faster as economies ofscale are achieved and production efficiencies are realized over time,and

-prices of large TV sets have been declining at a rate of $100 to$800 per year, so the additional cost of the DTV tuner may be partiallyor completely offset by the general price decline.

The FCC said this plan will ensure that new TV receivers include aDTV tuner on a schedule as close as economically feasible to theDecember 31, 2006, target completion date for the DTV transition thatwas set forth in the Communications Act by Congress.

The Second Report and Order and Second Memorandum Opinion and Orderadopted today requires that all television receivers with screen sizesgreater than 13 inches and all television receiving equipment, such asvideocassette recorders (VCRs) and digital versatile disk (DVD)players/recorders, will be required to include DTV reception capabilityafter July 1, 2007, according to the following schedule:

Receivers with screen sizes 36 inches and above -- 50% of aresponsible party's units must include DTV tuners effective July 1,2004; 100% of such units must include DTV tuners effective July 1,2005. Receivers with screen sizes 25 to 35 inches -- 50% of aresponsible party's units must include DTV tuners effective July 1,2005; 100% of such units must include DTV tuners effective July 1,2006. Receivers with screen sizes 13 to 24 inches -- 100% of all suchunits must include DTV tuners effective July 1, 2007.

TV Interface Devices VCRs and DVD players/recorders, etc. thatreceive broadcast television signals -- 100% of all such units mustinclude DTV tuners effective July 1, 2007.

In the item today, the FCC also declined for the time being to adoptlabeling requirements for TV receivers that are not able to receive anyover-the-air broadcast signals. The FCC stated that it is unclear when,or if, such products will become commercially available or how theywill be marketed. The FCC will continue to monitor the state of themarketplace and take additional steps if necessary to protectconsumers' interests.

Today's item also amends the FCC rules to reference the most recentversion of the Advanced Television System Committee's (ATSC) DTVstandard. The FCC also stated that it will address the possibleadoption of the ATSC's "Program System and Information Protocol" (PSIP)specification in its forthcoming Second Review of its policies for theDTV transition. In the interim, the FCC included the PSIP specificationin its rules as a document that licensees may consult for guidance.

Finally, today's action denies a petition for reconsiderationrequesting that the FCC consider imposing minimum performancethresholds for DTV receivers. In reaffirming its previous decision onthis issue, the FCC said that competitive forces are the best approachfor ensuring that DTV receivers perform adequately and meet consumerneeds in terms of price, quality, performance, and features.