POWELL TELLS MSTV CONFERENCE DTV ‘MIGRATION IS REGAINING STEAM’

These are tough days to be in any part of communications industry, Powell said, citing new forms of competition, “fractured consumer interests,” economic conditions and above all “technological disruptions.” DTV, he told broadcasters, is “your clear chance at a robust future” and “the cold truth” is “that we have no choice” but to continue to push transition. At FCC, “we have used our offices” to keep pressures on all industries affected by transition toward “clearing DTV roadblocks,” Powell said. “We have used our power to mandate change when an industry would not -- or could not -- come to a decision… There’s no turning back and no retreat. [FCC] will lead guided by pragmatism but backed up by regulatory action that we will not hesitate to employ where necessary.”

In panel on regulation, FCC Media Bureau Chief Kenneth Ferree and DTV Task Force Chief Rick Chessen continued theme. Said Chessen: “We're using all the tools at our disposal [including] jawboning, or whatever you call it… We're pushing hard to get this buildout done.”

NCTA Pres. Robert Sachs said great strides were being made in transition, but broadcasting, consumer electronics and cable officials could accomplish much more if they would stop mere “verbal exchanges [and] talk with one another": “Notwithstanding whatever policy differences we may have, it’s vital that we cooperate in the marketplace.”

It’s not as simple as requiring every cable system to carry every TV station’s digital signal, Sachs said , although “some of you [broadcasters] may disagree… Rather, it’s the quality of digital content broadcasters and cable networks offer” that will drive consumers to buy digital sets. Cable is “very desirous” of having manufacturers build sets with digital tuners, he said, and there have been half- dozen “full-day” closed meetings of officials of both industries, Sachs said. Parties “are making good progress… and hopefully the 2 industries will have more to announce in the not-too-distant future.”

Only mention in day-long conference of MSTV’s plan to finance and build digital lab (CD Oct 7 p1) was by Sachs, who cited many accomplishments of CableLabs in praising MSTV’s effort: “The broadcasting industry will benefit tremendously by creating its own R&D facility.” And, he said, “cable compatibility simply is not an issue” in DTV transition debate -- although it has been raised as such.

On panel on business of DTV, APTS Pres. John Lawson said “incredibly” educational stations had invested up to $800 million in transition. Mostly, they are broadcasting digital signal at night, using extra spectrum for datacasting in daytime, most of it directed toward teachers. Victor Miller of Bear, Stearns said “the bottom line is, Wall Street is very anxious” about transition. However, he forecast DTV could provide “real benefits” on revenue side.

NBC believes success of transition will be “consumer driven,” Washington Vp Robert Okun said. CBS Exec. Vp Martin Franks said he couldn’t understand “reluctance” of manufactures to build HDTV sets because of possible sales to consumers to replace analog TVs. He listed several prime- time and sports programs CBS was transmitting in digital -- said one program was promoted 5 times in Mon. night prime time. But moderator Richard Wiley (outside counsel for CBS) told Franks: “I don’t think you promote it [digital programs] very well.”

Mark Richer, pres. of American TV Systems Committee, said he was working closely with CableLabs on interactive standards and “I am cautiously optimistic” agreement could be reached very soon. Bruce Franca of FCC Office of Science & Technology said most DTV engineering-type problems had been solved and major hindrance to success of transition was financial. Robert Rast of Linx Electronics said of his company: “We're very optimistic [but] we don’t want to over- promise and over-promote.”