FCC Issues DTV Order

Washington, DC-The FCC has 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.

This week also saw the announcement that Michael Powell, son of
Secretary Of State Colin Powell, was tapped by President George
W. Bush to head the Federal Communications Commission,
where he will oversee the telecommunications and cable
industries. Powell has been a commissioner at the FCC since
November 1997 and takes over the reins of the Commission at a
key time when regulators are trying to figure out how to best
ensure competition in the communications marketplace as the
Internet, telecommunications and cable industries all converge.

Powell drew high praise for his tenure at the FCC and positions
from top lawmakers all different companies and industry
associations who often are lobbying opposing positions.

"He understands the benefits to consumers of aggressive
competition in the marketplace and I believe he will work with
Congress to complete the task of deregulating the
telecommunications industry," said Rep. Billy Tauzin, chairman of
the U.S. House Commerce Committee which has jurisdiction over
the agency.

As for the DTV FNRPM, 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 are December 31, 2003 for commercial stations,
and 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.

The Commission also 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.

It was also 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.

Additionally, the FCC 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. Procedures for
processing mutually exclusive DTV expansion applications were
also instituted, and the Commission also 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. 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 arapid transition to an all-digital broadcast
television service. It asked whethe r 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.