When consumer confidence in the CableCARD interface ‘hangs in the...

disclosed an ex parte filing at the Commission. CEA and the companies represented -- including Microsoft, Pioneer, Sharp and Sony -- reaffirmed arguments in CE’s campaign urging the FCC to resist cable industry pressure and keep intact the July 1, 2006, ban on MSO set-top devices with integrated security. Most consumers will receive DTV through cable, and as they choose their next DTV displays, they'll be more willing to pay the premium for a set with an integrated tuner if that set is CableCARD-ready, the CE group said. “Conversely, if consumers believe CableCARDs are unreliable, they may be motivated to buy monitors lacking a digital tuner on the assumption that they will use a cable operator-supplied set-top box and therefore will not need the integrated tuner,” the group said. “This threat to the DTV transition will be eliminated when the cable operator’s set-top boxes also use CableCARDs. Only common reliance on separable security will assure the development of a competitive market for value-added consumer electronics products with integrated DTV tuners.” The Commission’s existing rule “will serve its intended purpose only if it is left undisturbed,” the CE group said; no further action by the Commission is necessary. By contrast, it said, any delay in the July 2006 date “would be tantamount to repeal of this regulation -- with its never having had any chance to serve the Commission’s intended purpose.” But Comcast, meeting with many of the same FCC officials the same day, urged the Commission to delay its integration ban “a minimum of 18 months if it is not persuaded of the need to eliminate the integration ban altogether,” it disclosed in a separate ex parte filing. Reaffirming cable’s arguments for lifting or delaying the integration ban, Comcast told the FCC it believes “the statutory objective of ensuring the competitive availability of navigation devices can be and is being achieved” through the free marketplace. Cable “is fully honoring its commitment to support CableCARDs and to work assiduously on negotiation of a 2-way plug-&-play agreement,” Comcast said. Imposing the July 2006 integration ban “would increase costs to consumers and restrict the choices available to them,” Comcast said. Contrary to CE’s claim that leaving the ban intact was critical to a successful DTV transition, Comcast argued the ban would “impede development of a low-cost digital set-top box” and delay the transition.