THOMSON BACKS DTV TUNER MANDATE, MITSUBISHI OPPOSES IT
Thomson and Mitsubishi are squaring off in DTV debate, with former backing proposed FCC mandate requiring tuners gradually be included in analog sets, while latter opposes requirement. In separate ex parte filings with FCC, Thomson proposed extending deadline for fully integrating DTV tuners in sub-35” TVs 1-2 years to 2007-2008, while Mitsubishi Mktg. Vp Robert Perry said proposed mandate “should not be the next step in DTV transition” since it would result in “fundamental resource misallocation.” Earlier in week, Zenith weighed in, arguing that phased integration of tuners would be best means for providing “consumers with cost-effective products while achieving the national policy objectives” (CD July 31 p9).
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However, Perry said DTV tuner requirement would impose “tangible and very significant costs for additional hardware” and while FCC Chmn. Powell had argued for phased-in strategy starting with 35"-and-up screen sizes, “in terms of equity to the consumer, however, this approach is least fair.” Consumers buying large-screen TVs generally already are cable or satellite subscribers and are “least likely to make use of ATSC tuner.” Perry also took aim at FCC proposal that 50% of 36"-and-larger TVs contain DTV by 2004, with rest to follow year later. All sets, regardless of size, would be required to have DTV tuner by 2006. Price differential between sets with tuner and those without it would be “so substantial” that most consumers wouldn’t be willing to pay more for integrated models, Perry said.
Thomson Worldwide Public & Trade Relations Dir. David Arland said company backed phased-in approach, but only if voluntary schedule were followed by entire industry since “we cannot act on our own in this highly competitive market.” Zenith Senior Vp Richard Lewis also said mandate was necessary to allow sets that included DTV tuners to compete with low-cost set manufacturers: “The extremely price- competitive consumer electronics market demands a level playing field, Lewis said.”
Thomson and Mitsubishi also urged FCC to push cable industry to take aggressive approach in deploying digital services. Arland said unless national standard were “adopted and deployed” by cable operators and then built into TVs, “consumers will be forced to pay twice” for DTV decoding. Consumer first would have to pay for ATSC circuitry in TV, then lease or buy cable set-top box with same technology, Arland said. “We urge you to consider an approach involving the integration of both digital terrestrial broadcast and digital cable TV capabilities inside future TV sets within roughly the same time frame,” he said. Perry, in similar comments, said cable providers’ “monopoly on reception devices” forced subscribers to rent 2nd box with “redundant” tuner to receive digital programming. “A DTV mandate will not change this, it will only force the consumer to pay for yet another tuner that cannot be conveniently used,” Perry said.