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FCC Seeks Comment on Cablevision’s Request for Waiver of Prohibition on Encryption of Basic Service Tier

Comments Due: October 22, 2009
Reply Comments Due: November 6, 2009

September 25, 2009
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The FCC’s Media Bureau this week released a public notice seeking comment on Cablevision’s request for waiver of a Commission rule that generally prohibits cable operators from encrypting signals on a cable system’s basic service tier (“BST”). Cablevision’s waiver request notes that the company intends to convert its operations in the New York City area to all-digital service and argues that grant of the requested waiver will reduce costs, improve customer service, and result in other benefits, with virtually no negative impact on subscribers.

For instance, Cablevision claims that providing encrypted basic service will ensure that subscribers have an easier and more efficient way to activate and terminate service without appointments and will enhance security of the cable network. Furthermore, if Cablevision is permitted to launch an all-digital system with an encrypted BST, concerns relating to the inconvenience and cost of obtaining additional equipment would mostly be moot because once the system goes all-digital, nearly all of its subscribers will have equipment capable of decrypting the signals – i.e., either a CableCARD-equipped digital tuning device or a separate digital set-top box (for use in receiving encrypted non-BST channels).

Cablevision acknowledges, however, that if the waiver is granted, some of its BST-only digital customers who currently can receive unencrypted basic channels without a CableCARD or a separate digital set-top box will have to rent or purchase either a set-top box or a CableCARD.

Comments and oppositions in this proceeding must be filed by October 22, 2009, with replies due by November 6, 2009.

We would be pleased to respond to any questions regarding this matter.