FCC REPORT LACKS RURAL REQUIREMENT FOR LOCAL SIGNALS
FCC told Congress in report Tues. it wouldn’t make recommendations on specific measures to facilitate provision of local signals to subscribers in rural markets by direct-to-home (DTH) satellite and multichannel video programming operators because licensing process hadn’t been completed and it would be premature to make recommendations before licensing. Under requirement of Rural Local Broadcast Signal Act, Commission must inform Congress of ways its licensing and authorizations have helped provide local signals to satellite TV subscribers in remote areas.
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In report, FCC said it had made “major threshold” decision to authorize MVDDS service in 12.2-12.7 GHz band that would help subscribers in remote areas receive local broadcast signals after determining new service could co-exist with incumbent DBS operators and newly authorized nongeostationary satellite orbit (NGSO) Fixed Satellite Services (FSS) operators in band. Final rules will be adopted this year, with licensing assignment process to begin shortly thereafter, Commission said.
Cable TV remains dominant technology for delivery of video programming to consumers in Multivideo Programming Distribution (MVPD) market despite loss of market share, FCC said. As of June 2000, cable had 80% of MVPD market, down from 82% in 1999. In addition, Commission found 84.4 million households subscribed to MVPDs, up from 80.4 million. It attributed much of growth to DBS, which has 15.4% of all MVPD subscribers.
Technical issues facing cable industry include resolution of outstanding technical issues on compatibility with digital consumer TV receiving equipment, availability of component digital descramblers, known as point of deployment (POD) modules for use with set-top digital cable receiving devices, FCC report said. Introduction of cable digital services also could be delayed by current difficulties in developing agreements on copy protection technology and policy for digital video programming carried on cable systems, it said, and similar difficulties affect other digital MVPDs.
DBS still is cable’s largest competitor and continues to show growth, FCC said. Surveys of DBS subscribers found primary advantages of DBS to be superior channel capacity, digital quality picture, CD-quality sound, specialized programming such as exclusive sports packages. Barriers to expansion still exist, FCC said. Access to vertically integrated programming remains issue, it said. In many areas, Commission said MMDS provides only local- non-DBS competition to cable operators. One problem for continued and improved video service in those areas is that MMDS industry is transitioning from offering video programming to offering data service.