CEA Silent on Comcast’s CableCARD Waiver Request

Comcast filed its waiver request at the FCC July 19 but it hasn’t been published for comment at the Commission. The request was filed as the U.S. Appeals Court, D.C., prepares to hear May 11 oral arguments on cable’s petition to vacate the Commission integration ban order. NCTA has joined petitioners Advance Cable and Charter in asking to void the order, while CEA has intervened on behalf of the FCC to keep it intact.

An NCTA spokesman said his group also backs Comcast’s waiver request on the ground that the Commission specifically indicated in a March 17, 2005, order delaying the integration ban that it would entertain waiver requests for low-cost, limited-capability set-tops. NCTA has no knowledge whether other cable operators are preparing similar waiver requests for imminent filing, the spokesman said. But FCC rules say if a waiver is granted for a particular box, it applies to anyone deploying the same box, the spokesman said.

Comcast’s waiver request seeks CableCARD exemptions for 3 specific boxes -- the Motorola DCT-700, the Scientific- Atlanta (S-A) Explorer-940 and the Pace Chicago set-top. All lack HD output, DVR playback, broadband Internet capability and other such functionality, but do enable features such as VoD or electronic program guides not found on unidirectional CableCARDs.

Of the 3 models cited, Comcast describes the DCT-700 as its workhorse in the 75% of its cable systems where digital- analog simulcast service is supported. Comcast said it as bought a million DCT-700s and plans to buy up to 1.5 million more this year. Meanwhile, the Explorer-940, in development, will be deployed later this year, Comcast said. There are 2 versions of the Pace Chicago set-top for the U.S. market, Comcast said. The DC-501P, for cable systems using S-A headends, is available now; the DC-505D for Motorola headends is in development and could be deployed later this year.

Comcast said the waiver it seeks would be limited to the 3 devices, but the waiver’s scope could be far more sweeping. Besides rules letting other cable operators claim an exemption when using the same boxes, Comcast asked that the waiver “encompass any other digital set-top boxes that share the same characteristics” as the DCT-700, Explorer-940 or Pace Chicago models. Doing so “would avoid the time, expense and uncertainty for Comcast, and the corresponding burden on the Commission, that would result if separate waivers were needed for every comparable individual device placed in service by Comcast,” the filing said.

With the integration ban taking effect in less than 15 months, Comcast urged the Commission to “act promptly” on its waiver request. Approving the waiver “will advance important public interest benefits,” including easing the DTV transition by putting digital set-tops in analog households otherwise bound to go dark with the Feb. 2009 analog cutoff, it said: “Deployment of these low-cost, limited capability devices will significantly increase customer use and enjoyment of digital services.” It estimated it has 9.5 million digital customers -- 45.6% of its total subscribers - - and “is aiming to push that penetration figure to over 75% by the end of the decade.”

Waiver “will have no adverse effects on CE manufacturers or retailers,” Comcast said. Cable systems where Comcast has or will deploy the low-cost, limited boxes “support CableCARD-enabled equipment,” it said: “Consequently, subscribers are free to purchase such cable-ready equipment at retail, and Comcast is required to provide them with CableCARDs.” It said CE industry interest in set-tops for aftermarket retail “has focused exclusively” on boxes with DVR capability, not the limited-function low-cost boxes for which it seeks the waiver. “There is no basis for concern that grant of the waiver would harm the marketplace for CableCARD-enabled devices or other CE products,” Comcast said.