CEA Files Opposition to Mandatory DTV Receiver Standards with FCC, Citing Lack of Authority and Market Benefits
Summary
The Consumer Electronics Association filed a brief with the FCC opposing a broadcaster petition to reinstate mandatory performance standards for digital television receivers. CEA argued the FCC lacks statutory authority to impose such standards and that market competition is already driving significant improvements in DTV receiver technology.
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CEA Files Opposition to Mandatory DTV Receiver Standards with FCC
Association States Lack of Commission Authority, Benefits of Marketplace Competition in Justification Arlington, Va., April 12, 2001 - In a brief filed today with the Federal Communications Commission (FCC), the Consumer Electronics Association (CEA) stated its vehement opposition to a petition requesting that the FCC reconsider its ruling pertaining to performance standards for digital television (DTV) receivers. "CEA and its members strongly oppose broadcasters' continued calls for government-imposed performance standards for digital television receivers," the brief states. "As the Commission recognizes, 'DTV receiver manufacturers, driven by market forces, are continuing to make significant improvements in their products, particularly in the area of indoor reception and multipath signal handling capabilities.' The Commission correctly concluded that government mandated performance standards would impede innovation and lead to lowest common denominator solutions." The brief was filed in response to a petition by a group of broadcasting organizations, who have  asked the FCC to reconsider its ruling in the DTV Biennial Review Order, which declined to adopt mandatory performance standards for DTV receivers.CEA's arguments focus on two distinct points: (1) that the FCC lacks the requisite statutory authority to impose such standards upon manufacturers, and (2) that mandatory receiver standards are a poor policy decision, due to the thriving consumer marketplace for DTV products. With regard to the FCC's authority in the matter, CEA argues that "While drafting the All-Channel Receiver Act, the 87th Congress explicitly considered and rejected the possibility of granting the Commission the general authority to set receiver performance standards. As discussed in previous pleadings submitted before the Commission, the legislative history of the statute clearly bears out this fact." In terms of the policy implications, CEA cites previous decisions by the FCC to rely on market forces to govern DTV receiver design, "Throughout its DTV proceedings, the Commission has recognized the inherent difficulties of predicting consumer demand... The Commission was properly reticent about predicting market demand. Equipment manufacturers, motivated by market demands, are in the best position to respond quickly to marketplace changes." CEA President and CEO Gary Shapiro commented, "The Commission made the proper decision in its original ruling on receiver standards. We now urge the Commission to turn its focus toward content, and ensure that broadcasters meet their obligation to provide viewers with ample, high-quality digital programming." CEA represents more than 625 U.S. companies involved in the design, development, manufacturing and distribution of audio, video, mobile electronics, communications, information technology, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, these companies account for more than $70 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry. CEA represents the consumer electronics industry in association with the Electronic Industries Alliance (EIA). CEA also sponsors and manages the International CES - Your Source for Workstyle and Lifestyle Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy. UPCOMING EVENTS EIA and CEA Spring Conference May 6-9, 2001, Washington, DC CEO Summit (invitation only) June 20-22, 2001, Olympic Valley, CA CEA Fall Conference and Industry Forum October 14-17, 2001, La Quinta CA Digital Car Conference and Exhibition October 16-18, 2001, Detroit, MI 2002 International CES - Your Source for Workstyle and Lifestyle Technology January 8-11, 2002, Las Vegas, NV |
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