Washington - The FCC today issued a Report and Order and a Further Notice of Proposed Rulemaking (FNRPM) in its first periodic review of the digital television (DTV) transition to resolve issues crucial to the rapid conversion of the nation's broadcast television system from analog to digital.
The Commission:
* Affirmed the 8-VSB modulation system of the DTV transmission standard, concluding that there is no reason to revisit its decision denying a request to allow use of an alternative DTV modulation standard.
* Set dates for stations with both analog and digital channel assignments within the DTV core (channels 2-51) to elect which channel they will use for their post-transition digital channel. (December 31, 2003, for commercial stations; December 31, 2004 for non-commercial broadcasters). Election dates for broadcasters with one or both channels outside the DTV core will be set in a future periodic review proceeding.
* Determined that broadcasters need not replicate with their digital signal the entire Grade B service area of their analog station. However, the Commission said that commercial stations will lose interference protection to those portions of their existing NTSC service area that they do not replicate with their DTV signal by December 31, 2004; noncommercial DTV stations will not lose such protection until December 31, 2005.
* Ordered that by December 31, 2004, commercial DTV stations must provide a stronger signal to their communities of license than the DTV service contour they were initially required to provide. Noncommercial DTV stations must provide the enhanced signal strength to their communities by December 31, 2005.
* Denied requests to set performance standards for digital receivers, expressing concern that the effect of setting such standards at this point would be to stifle innovation and limit performance to current capabilities. The Commission said it would continue to monitor receiver issues;
* Instituted procedures for processing mutually exclusive DTV expansion applications and set the date of adoption of today's order as a cut-off date so that all pending DTV "area expansion" applications will be protected against later-filed applications.
- more -
The Commission also issued a Further Notice of Proposed Rulemaking to consider whether to require some TV sets to have the capability to demodulate and decode over-the-air DTV signals in addition to displaying the existing analog TV signals.
In raising this issue, the Commission recognized broadcasters' concerns that DTV receivers are not yet available in sufficient volume to support a rapid transition to an all-digital broadcast television service. It asked whether a requirement to include DTV reception capability in certain television sets could help to develop the production volumes needed to bring DTV receiver prices down quickly to where they are more attractive to consumers and could help to promote a more rapid development of high DTV set penetration.
The Commission asked for comments on how best to implement DTV reception capability requirements, if it were to decide to adopt them. It said it recognized the cost considerations associated with such requirements. The Commission suggested that one approach for minimizing the impact on both consumers and manufacturers would be to impose any requirement first on a percentage of large screen televisions, such as 32 inches and larger, because these are typically higher priced units where the cost of DTV components would be a smaller percentage of the cost of the receiver. In addition, it asked whether any requirement should be phased in over time such that manufacturers would increase each year the percentage of units of a designated screen size or larger that are manufactured each year that would have DTV receive capability. It noted that separate set-top DTV receivers could also be included in meeting the reception capability requirements.
The Commission additionally requested comment on whether it should require any digital television receivers that cannot receive off-the-air digital broadcast signals to carry a label informing consumers of this limitation on the receivers' functionality. This issue concerns receivers that are intended for use only with cable television or broadcast satellite service. The Commission indicated that while it expects that consumers will continue to expect all digital television receivers to be able to receive over-the-air broadcast signals, it suggested that where receivers not able to receive such signals are marketed, consumers should be so notified prior to purchase.
The FCC noted that the Report and Order and the Further Notice of Proposed Rulemaking were designed to expedite the DTV transition and to provide licensees with a measure of certainty that will enhance their ability to plan facilities, order equipment and arrange for construction of their facilities, all of which will speech the transition to digital service.
Action by the Commission by Report and Order and Further Notice of Proposed Rulemaking (FCC 01-24).
MM Docket #00-39
Mass Media Bureau Contacts: Roger Holberg and Mania Baghdadi (202)-418-2120
Office of Engineering & Technology Contacts: Bruce Franca and Alan Stillwell (202) 418-2470
Statement of Chairman Kennard:
STATEMENT OF CHAIRMAN WILLIAM E. KENNARD
Re: Biennial Review - Review of the Commission's Rules and Policies Affecting the Conversion to Digital Television
The transition to digital television will bring tremendous benefits to the public, both in enhanced broadcast services and in the return of valuable spectrum for auction. Our actions today go a long way toward moving that transition forward.
Today's decision provides broadcasters with the clarity and flexibility necessary to accelerate the build out of their DTV operations, while ensuring that all Americans will participate in the digital television future. We also reaffirm our selection of the 8-VSB ATSC transmission standard and finally put this lingering debate to rest. I appreciate the efforts of the broadcast industry to confirm that 8-VSB will serve the needs of American consumers in the digital age. I am pleased that after extensive testing of 8-VSB, including tests that compared 8-VSB with alternate transmission standards, the broadcast industry overwhelmingly supports the 8-VSB standard. Now, I encourage broadcasters and manufacturers to come together to refine and improve 8-VSB as necessary.
Finally, I believe that reception capability is a critical part of the transition puzzle. I fully support the decision to seek comment on a requirement that all DTV sets be able receive DTV programming over the air.
Statement of Commissioner Ness:
SEPARATE STATEMENT OF COMMISSIONER SUSAN NESS
Re: Biennial Review - Review of the Commission?s Rules and Policies Affecting the Conversion to Digital Television
Today's action is good news for industry and consumers.
I am pleased that the Commission has completed the first periodic review of the digital television transition. The issuance of this Order and Further Notice puts to rest some lingering issues that required resolution to assure a smooth transition. The broadcasting industry, together with the consumer electronics, cable television, and content industries, should now set aside division and delay, and forge ahead with the digital transition. I firmly believe that the transition from an analog terrestrial broadcast system to a digital broadcast system is in the public interest, but it must be executed in a manner least disruptive and most beneficial to consumers.
Digital Transmission Standard
I am pleased that on the basis of industry and Commission testing, the Report and Order concludes that the 8-VSB transmission standard should not be revisited. Under the leadership of MSTV and NAB, the broadcast industry conducted comparative tests of 8-VSB and COFDM. While it found that neither system worked perfectly in all settings, the broadcast industry, with few dissents, elected to continue to embrace the industry-designed and Commission-adopted 8-VSB standard. The industry also decided to devote significant resources to improve signal reception quality.
Broadcasters deserve much credit for resolving this issue. Its decision enables he Commission to conclude with greater confidence that 8-VSB should remain the digital television transmission standard. This important decision should now spur additional research in receiver design to ensure that consumers are able to enjoy indoor reception of digital television signals.
Digital Receiver Requirements
While the item does not mandate receiver performance standards, we will continue to monitor receiver quality during the transition and will take appropriate action on receiver standards as necessary. I urge consumer electronics manufacturers to make the necessary investment to improve receiver performance. This is a critical component of a terrestrial broadcast regime.
I am also pleased that we ask questions, but draw no firm conclusions in the Further Notice, regarding our authority and the desirability of requiring digital broadcast reception capability in a subset of future receivers sold in the United States. We need to weigh very carefully the cost to the consumer of such a requirement, as well as its impact on the digital transition. I am also interested in submissions regarding the availability and retail cost of simple decoders that will enable consumers to display digital programs on their analog sets.
In just 17 months, all commercial television broadcast licensees are supposed to have their digital systems up and operating. Is there adequate reception capability -- through digital receivers, decoders attached to analog sets, and cable television connectivity and program carriage * to reap the benefit of these new digital signals and to spur the production of original digital programming?
Today, the retail cost of digital receivers is prohibitively expensive for all but the most enthusiastic early adopters. Moreover, many of the sets sold today are incapable of receiving an over-the-air digital signal. Will the marketplace address this situation?
I am pleased that our Further Notice poses the question of whether digital television sets designed for cable connection should have a warning label if they are incapable of receiving and displaying a digital broadcast signal. Consumers have a right to know that information.
Next Steps
Now that the uncertainty over the transmission standard is resolved, is time for all industries involved in the digital broadcast food chain to come together and redouble efforts to achieve a speedy transition that works for the American consumer. Broadcasters must increase the amount of unique digital programming to whet the appetite of consumers and to make the case for cable carriage. Equipment manufacturers must improve receivers and lower prices dramatically. The cable, broadcast, and programming industries must work together with the consumer electronics manufacturers to ensure that viewers are able to receive all available digital programming, including top-quality productions. Finally, broadcasters and cable operators must negotiate in good faith for the carriage of digital signals on systems that have been expanded.
I intend to do my part to ensure that the Commission processes applications expeditiously and resolves issues necessary to the transition.
Statement of Commissioner Furchtgott-Roth:
In re Review of the Commission?s Rules and Policies Affecting the Conversion to Digital Television
Statement of Commissioner Harold W. Furchtgott-Roth Concurring in Part and Dissenting in Part
I concur on the matters presented in the Report and Order because I believe the Commission has taken reasonable and appropriate steps to move the digital television transition forward. The decisions set forth in the Report and Order, such as affirming the 8 VSB standard, provide a modicum of certainty that will enable television stations to plan, build, and operate digital facilities in a timely fashion.
I do, however, dissent on the DTV tuner matters raised in the Further Notice of Proposed Rulemaking. In general, I have concerns about the government forcing technology on the public rather than letting the marketplace take the lead. More specifically, I am apprehensive about requiring DTV tuners to be built into all television sets because of the costs such a policy may impose upon set manufacturers and consumers. I find that government manufacturing standards rarely benefit the public. I also call into question whether the 1962 All Channel Receiver Act, as codified in Section 303(s) of the Act, provides the Commission with the authority to require DTV tuners to be built in all television sets. This particular statute was conceived at a time when digital television was mere science fiction--Congress could not have had DTV technology in mind when it was considering this law.
Statement of Commissioner Tristani:
FOR IMMEDIATE RELEASE NEWS MEDIA CONTACT
January 19, 2001 William J. Friedman (202) 418-2300
PRESS STATEMENT OF COMMISSIONER GLORIA TRISTANI
In the Matter of the Periodic Review of Digital Television
I write separately to set forth my objection to imposition of mandatory DTV reception capabilities for new television sets. As consumer advocates have repeatedly noted, any mandate that increases the cost of television sets to facilitate the transition to the digital broadcast era, unfairly burdens consumers. A mandate also reduces the likelihood that less expensive options like digital converters will be developed and deployed. The Further Notice of Proposed Rulemaking seeks information from consumers and consumer groups regarding the harm that may arise from imposition of mandatory DTV reception capabilities. I believe a well-developed record may demonstrate such a requirement is contrary to the best interests of consumers and may do little to advance the transition to digital broadcast television.
