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FCC Sets Comment Deadlines for Comcast Set-Top Box Waiver Petition

May 18, 2006

The FCC has released a Public Notice establishing comment and reply comment deadlines for a petition filed by Comcast seeking a waiver of the set-top box integration prohibition with respect to certain low-cost, limited capability digital set-top boxes. Under the relevant FCC rules, the agency could extend such a waiver to cable operators other than Comcast. The comment deadline is June 15,2006; reply comments are due June 30, 2006.

Discussion. Under rules scheduled to take effect on July 1, 2007, cable operators will be prohibited from putting into service set-top box devices that combine conditional access and other functions. Comcast's waiver petition seeks an exemption from that ban for three specific devices: (i) the Motorola DCT-700; (ii) the Scientific-Atlanta Explorer 940; and (iii) the Pace Chicago boxes. In addition, Comcast has asked that the waiver cover "set-top boxes that share similar characteristics" with the specified devices.

According to Comcast, the boxes for which it is seeking an integration ban waiver are "low-cost, limited capability" boxes that enable consumers with conventional analog television sets to receive digital cable transmissions and access interactive program guides, parental controls and VOD programming, but lack DVR, RD, multiple tuner, broadband Internet access or other higher-end functionalities Comcast argues, among other things, that the continued availability of such boxes will benefit consumers without harming the consumer electronics' industry and will facilitate the digital transition. In particular, Comcast estimates that if the devices at issue had to be re-engineered to satisfy the integration ban (by adding CableCARD capability and a host interface), it would increase their cost by 50 percent or more.

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