NEW DTV REVIEW AGAIN SEEKS COMMENTS ON SET-LABELING RULES

Rulemaking also revisits whether Commission should impose labeling requirements on sets not capable of over-air DTV reception. FCC recalled it had passed on imposing labeling requirements when it approved DTV tuner mandates last summer. As part of effort promised then to “monitor” marketplace for policy changes later if needed, newest rulemaking asks whether set makers plan to market receivers capable of satellite or cable, but not over-air, DTV reception. If so, FCC asks whether CE companies plan to label such equipment “to describe the reception limitations or need for additional receiving equipment.” Agency also seeks comments on “the potential for consumer confusion in connection with these devices.” Heeding recommendations in recent cable-CE industry agreement on plug-and-play interoperability standard, Commission said it was considering voluntary labeling “regime” and consumer disclosure requirements for unidirectional DTV and digital cable products.

Comment also is sought whether disclosure label should be required on analog sets to inform consumers that DTV tuner or converter would be needed “after stations in the consumer’s market complete conversion to digital-only broadcasting.” Rulemaking poses series of pointed, specific questions: (1) Where should the label be placed? (2) Should there be additional point-of-sale disclosures? (3) Should retailers be required to furnish consumers with “digital conversion fact sheet” with purchase of all new TV sets?

In asking how well DTV was being promoted to consumers, Commission appeared to express doubts, citing results of General Accounting Office survey in Nov. that found at least 40% of public was “unfamiliar” with DTV transition and only 14% were “very familiar” with differences between analog and digital sets. Comment is sought on “general availability” of DTV consumer equipment, including: (1) How many devices that have been sold to consumers can receive and display over-air digital signals? (2) How many down-convert digital signal to analog are capable of HDTV or standard-definition reception? (3) How many sets are designated “DTV-ready” and require additional purchase of over- air tuners? CEA said Mon. that cumulative DTV unit shipments (including monitors and ATSC-capable integrated sets with 480p displays or better) reached 2,487,502 in 2002, 73% higher than year earlier. Of cumulative total, CEA said, 11.47% were capable of ATSC reception, but proportion of products shipped in 2002 with that capability was only 11.07%.

Rulemaking revisits some issues in first review but also addresses several new issues that parties have said they considered trickier aspects of transition. Those include how FCC should interpret test developed by Congress to determine whether at least 85% of viewers have access to digital broadcast signals, either over air or through cable or satellite. Rulemaking addresses new channel election, replication and maximization requirements since broadcast TV will be limited to “core spectrum” of current channels 2 through 51 (54-698 MHz) after transition. It proposes May 1, 2005, as channel election deadline for commercial and public broadcast licensees with 2 in- core assigned channels, and seeks comment on alternative deadlines. FCC proposes to end replication and maximization interference protection for affiliates of Big 4 networks (ABC, CBS, Fox and NBC) in markets 1-100 as of July 1, 2005, and for all other commercial and public DTV licensees as of July 1, 2006. Agency asks whether it should adopt intermediate signal coverage requirement beyond broadcaster’s current obligation to cover its community of license, expanding into nearby areas of market.

Comment is sought on replication and maximization interference protection deadlines for stations operating on TV channels 52-69 in order to speed clearing of 700 MHz band, which isn’t considered “core spectrum.” Auction Reform Act of 2002 directs FCC to conduct auctions of 700 MHz band before expiration of agency’s auction authority Sept. 30, 2007. FCC also invited comment on other issues on protection that must be provided to incumbent analog and digital broadcasters in 700 MHz band during transition.

Because Communications Act says licenses for analog TV expire Dec. 31, 2006, FCC is asking how it should interpret criteria for giving broadcasters extensions. Agency is required to reclaim spectrum unless one of 3 conditions is met. Commission seeks comment on when stations should file extension requests with agency, how FCC should define TV market, how it should interpret requirement that digital-to-analog converter technology be “generally available” in TV market and how it should interpret test to determine whether at least 85% of viewers had access to digital broadcast signals. FCC can grant extensions if: (1) One or more stations in particular market that are licensed to or affiliated with one of 4 Big networks aren’t broadcasting in digital and Commission finds station has exercised “due diligence on construction deadlines. (2) Converter technology is not generally available in market. (3) 15% or more of TV households don’t have access to DTV.

Rulemaking also asks: (1) Whether broadcasters should be required to include Program System and Information Protocol ("PSIP") information in their digital signals to ensure availability of some functions. (2) Whether FCC should adopt digital V-chip or closed-caption requirements. (3) Whether FCC should retain, revise or remove requirement that licensees simulcast certain percentage of their analog channel on their DTV channel. (4) Whether there are steps FCC needs to take to help public TV stations in transition. (5) Whether and how FCC should license multiple lower powered transmitters, similar to cellular telephone systems, called distributed transmission systems. (6) What station identification requirements should apply to digital stations. Comments are due April 14, replies May 14.