Summary

FCC Commissioner Michael Powell joined CEA President Gary Shapiro at a CES 2001 Supersession to discuss digital television, copyright protection, and cable must-carry. Powell expressed skepticism about reaching the 2006 DTV transition deadline while affirming the transition itself was inevitable, and argued the FCC's role in copy protection matters was extremely limited.

Source document circa 2001 preserved as-is

Sunday, January 7, 2001

Informal Session has Government Official Field Questions on Issues of Importance to Manufacturers

Las Vegas, Nev., January 7, 2001 - In a special Supersession yesterday at the 2001 International CES - Your Source for Workstyle and Lifestyle Technology, Consumer Electronics Association (CEA) President and CEO Gary Shapiro hosted a one-on-one discussion with Federal Communications Commissioner (FCC) Michael Powell to discuss the FCC and its involvement in many of the major issues facing the consumer electronics industry. The hour-long wide-ranging discussion hit topics including digital television (DTV), copyright protection and the retail availability of digital set-top boxes. The session also addressed Powell's philosophy on regulation and the Commission's role in public policy debates.

Powell said that he views his role as being, "an advocate for consumers" and argued that the free market is often best left alone to resolve disputes, stating that in his opinion, "the burden is always against regulatory intervention, and the bar is high." He also spoke of the opportunities for the FCC under the new Administration and Congress, describing a philosophy of the FCC as not solely a regulator, but also an expert that should serve as a partner and an advisor to the Congress.

On the issue of digital television, Powell supported efforts to build consensus among the vested parties - manufacturers, government, broadcasters, the cable industry and content providers. He added that the marketplace should determine the success of DTV and expressed skepticism about achieving an 85 percent penetration rate by the 2006 goal as mandated by Congress. However, he did state that he thought the DTV transition was inevitable, whether it be in the form of HDTV or some other, lower quality option.

Shapiro questioned Powell about the Commission's lack of action on the issue of cable must-carry. Powell stated that he thinks little has been done because the issue is "not ripe yet," but he believes the Commission will act on the issue in the near future, joking with Shapiro by adding "one way or another." When asked about the FCC and its role with regard to copy protection and home recording rights, Powell stated that he thought the Commission's role was "extremely limited, if existent at all," and preferred to leave the issue to Congress and the judicial system.

This year's International CES has a strong government presence, with more than 40 key public officials representing the U.S. federal and state governments in attendance. Government attendees include elected and appointed officials along with key staff members from Capitol Hill, the FCC, the Federal Trade Commission (FTC) and several state governmental bodies. Numerous government attendees also are participating in conference sessions specifically designed to educate the industry on the ways in which business and government can work together.