DRAFT DTV Primer I.

Background

January 2005

Section 309(j)(14) of the Telecommunications Act of 1996 (Act) prohibits a broadcast license that authorizes analog television from being renewed to authorize such service beyond December 31, 2006, unless one of several reasons for extending such analog service applies.1 One notable exception is discussed in more detail below. The Media Bureau of the Federal Communications Commission (FCC) has proposed an alternative hard deadline of January 1, 2009. TIA believes that this deadline is realistic for the following reasons. Broadcasters elect whether to have their analog signal carried by cable operators pursuant to must carry rights or retransmission consent.2 This election takes pace every three (3) years, with the next election scheduled to take place on October 1, 2005, and then again in 2008. The hard deadline that is proposed can be met because broadcasters are given several years to prepare their facilities and switch their must-carry rights from their analog signal to mandatory carriage of their digital signal. In addition, most broadcasters elect retransmission consent, which will also ensure that HDTV and carriage of multiple streams can be negotiated without hindering the emergence of such programming to viewers.3 Cable operators would be required to down-convert or pass through via set-top boxes the digital must-carry signal, as they now do with analog. Satellite operators would have similar obligations in passing through at least one stream of each broadcasters digital signal and down-convert it from HDTV, if necessary. Dual carriage a cable operators ability to carry both the analog and digital signal before the transition raises constitutional implications and is not being mandated at this time. However, mandatory multicasting will likely be reexamined in dealing with multiple streams of digital signals for after the transition, which will give broadcasters an additional incentive to cooperate with the proposed framework.
1

47 U.S.C. 309(j)(14).

Under the Cable Television Consumer Protection and Competition Act of 1992 (47 U.S.C. 614 and 615) cable operators must carry commercial and noncommercial television broadcasting in proportion to how many stations it operates. Retransmission consent (47 USC Sec. 325(b)) provides that no cable system or other multichannel video programming distributor shall retransmit the signal of a broadcasting station, unless permission, under Sec. 614, or another authority. In other words, a television station must either elect to be carried by a cable operator via must carry or retransmission consent (private contract with terms determined by the parties).
3

As of March 2004, cable companies had launched high definition television service on systems passing 84 million homes. At least one cable operator in 99 of the top 100 markets now offers HDTV, and HD over cable is available in 155 of the 210 U.S. television markets. Cable programmers are also leading the way in creating compelling high definition content that will drive the sale of digital television sets. See http://www.ncta.com/pdf_files/IssueBriefs/MustCarry.pdf.

DRAFT

January 2005

In reference to the aforementioned exception for which a broadcaster can extend its license to broadcast an analog signal where fifteen percent (15%) or more of television households in a market is without means of obtaining a digital signal an eighty-five percent (85%) statutory threshold is created. The FCC and industry efforts have made it possible to meet this threshold. For example, the following will all count towards the 85%: cable and satellite subscribers,4 owners of televisions compliant with the FCCs DTV tuner mandate,5 and owners of plug-and-play televisions.6 And even after meeting the statutory threshold, the FCC is willing to work with Congress to determine whether and how to assist the few remaining persons who still lack digital access. At this point, Congress should be encouraged to support the hard deadline and the FCC should be encouraged to continue interpreting the Act and determine what defines a digital household for purposes of satisfying the 85% threshold. The hard deadline of January 1, 2009 is realistic and workable based on the foregoing reasons, and such a deadline would be beneficial to the communications industry, public safety, and economy for the reasons outlined below. II. Benefits 1. Industry a. Certainty in the marketplace. b. Manufacturer and retailer planning for the production and distribution of equipment. (i) Broadband deployment. (ii) Job creation. 1. Public Safety c. Public safety operation in the 700 MHz band. d. 24 MHz of the 108 MHz recovered will be used for public safety needs. 2. Economy e. 84 MHz of the 108 MHz recovered will be auctioned off for advanced wireless services- value increased by certainty in a hard deadline. f. Increased jobs (see above) and international competitiveness.

DirecTV and Echostar HD set-top boxes contain an over-the-air DTV tuner.

A television with a built in DTV tuner, as opposed to an analog tuner, allows the viewer to receive overthe-air digital signals without the need for an additional device (i.e., set-top box). The DTV tuner mandate requires (1) receivers with screens 36 inches and above, 50% must include DTV tuners by July 1, 2004 and 100% as of July 1, 2005 (2) receivers with screens 25-35 inches, 50% must include DTV tuners as of July 1, 2005 and 100% as of July 1, 2006; (3) receivers with screens 13-24 inches, 100% must include DTV tuners as of July 1, 2007; and (4) TV Interface Devices, VCRs, and DVD players/recorders, etc. that receive broadcast television, 100% must include DTV tuners as of July 1, 2007.
6

A plug-and-play digital television is a television that you can plug directly into your cable system and receive analog and most digital cable services without the need for a set-top box. More and more cable services are being provided in digital format, and broadcast stations are in the midst of the transition from analog to an all-digital service. See http://www.fcc.gov/cgb/consumerfacts/plugandplaytv.html.