Cable Encryption Largely Backed in Comments to FCC, With Some Concerns

The CEA said it would outright oppose the proposal unless the agency acts on other issues the association called related, including consumer access to pay TV and online video using devices they don’t have to lease from the multichannel video programming distributor. The issue of AllVid also was raised by the two nonprofits that did back the proposed rule: Media Access Project and Public Knowledge. They and the CEA used comments posted Tuesday in docket 11-169 (http://xrl.us/bmjskg) to continue pressing for an AllVid NPRM.

Fewer so-called truck rolls mean less carbon dioxide is emitted by vehicles, many cable filings said. “These benefits would occur in urban cable systems, where there is heavy traffic congestion, and in rural systems, where service calls can entail long drive times. The Media Bureau noted these environmental benefits in granting Cablevision’s waiver request” in 2010, the NCTA said. Digital set-tops and digital transport adapters for subscribers to receive encrypted channels use little energy and “will have a negligible impact on home energy use,” with DTAs using less than 4 watts of power, the association said. NCTA members made similar comments.

Cablevision cut the number of truck rolls for service disconnections in New York City by 99 percent, and it got “not a single complaint from consumers about encryption,” the company said (http://xrl.us/bmjssj). That shows “the substantial environmental and consumer benefits of encryption and the virtual absence of consumer harm when encryption is accompanied by appropriately targeted consumer protection,” the company said. Comcast, which plans to have half its footprint all-digital by Dec. 31, 2012, cited Cablevision’s experience.

Cablevision shows encryption leads to a “drastic reduction” in truck rolls, Comcast said (http://xrl.us/bmjssq). “Comcast estimates that encryption of its basic service tier in all-digital systems would have a similar impact -- reducing truck rolls to disconnect service by 90 percent and reducing truck rolls to reconnect service by 45 percent, and thereby eliminating thousands or even millions of truck rolls in Comcast’s all-digital systems.” Inter Mountain Cable, Mikrotec CATV and RCN (http://xrl.us/bmjsss), with encryption waivers pending, asked that those be approved before the rulemaking proceeding is finished. Rule changes “might take anywhere from an additional 6 months to a year” to take effect, IMC and Mikrotec said jointly (http://xrl.us/bmjssu).

The CEA used its filing to seek commission action on an array of home networking and downloadable cable device security issues. It wants the agency to: Finish an Ethernet home networking proceeding the FCC began last year after getting waiver requests; “Achieving device competition in IPTV systems, which do not use CableCARDs” to separate navigation and security functions in set-tops; “Resolving the status of ‘Downloadable Security;’ and “Addressing the future of CableCARD-reliant devices in light of the declared intention of cable systems to move expeditiously to IP-based distribution.” The FCC has identified those issues, the association (http://xrl.us/bmjsod) said: “If not resolved, it will have to deal with [them] piecemeal and reactively through waiver applications for relief from rules that still do not recognize the transition to IP transmission."

The FCC’s 1994 ban on cable encryption of the basic tier doesn’t apply to other MVPDs nor online video companies including Netflix, and is outdated, cable operators and their trade groups said. Cable operators have digitized most of their linear channels, and are phasing out analog service to reclaim bandwidth for HD programming, faster broadband service and “new IP-based cable services,” the NCTA said (http://xrl.us/bmjsrp). “In this digital world, most cable customers have set-top boxes or retail devices to access cable services,” so they won’t need any extra equipment to get encrypted channels on the basic tier, the group said: “Almost all channels are delivered with encryption,” and 77 percent of subscribers get digital service. The American Cable Association sought (http://xrl.us/bmjsr9) a free set-top requirement for “a period of days, rather than the one to five years set forth in the Commission’s proposal” once encryption starts.

The Media Access Project and Public Knowledge agreed with operators about the encryption ban being a relic. “The technology has changed and the rule no longer serves its purpose. The Commission should move as swiftly as possible to bring its rules into alignment with developments in digital technology,” the groups (http://xrl.us/bmjso6) said: “The Commission should move with similar speed to adopt” a NPRM “in the pending AllVid proceeding so that consumers can have access to competing devices and services in the manner Congress intended. The Commission’s lack of action in AllVid, however, should not delay the deployment of all digital systems.”

The agency should ensure “consumers remain whole,” so low-income cable customers can get free set-tops or CableCARDs for five years, and other subscribers free for a year and some for two, so they can view the encrypted programming, the two nonprofits said. That’s not long enough for various municipalities which oversee cable operators, including Montgomery County, Md. (http://xrl.us/bmjspx). Localities want the free set-tops to last for as long as encryption continues. “The Commission should require any operator encrypting the basic service to unequivocally commit to protect consumers for as long as the cable operator benefits from this change,” said Boston (http://xrl.us/bmjs3n). “Unfortunately, the NPRM tentatively concludes that cable operators should receive these benefits subject only to the duty ’to ameliorate any potential harm to consumers in the short run.’ This is unacceptable.” Boston and the Alliance for Community Media (http://xrl.us/bmjspv), representing public, educational and governmental channels, also said the NPRM doesn’t consider the impact of encryption on PEG channels.