Allowing pay-TV distributors to encrypt their basic service tier would...

add-on to its box that allows customers to watch live TV through an ATSC and QAM tuner. “We expect that many of our users will choose to connect the product to QAM, as reception via antennas may be inconsistent or unavailable in some areas,” the notice said. “The market for our product will therefore be significantly reduced if cable providers are permitted to encrypt basic tier cable programming,” it said. And the interim relief proposed in the rulemaking notice is inadequate “because it provides for relief only to a group of consumers that is far more narrowly defined than Boxee’s target market,” the notice said. Consumers will be less likely to buy Boxee’s product if they also need to pay for a converter box to access their cable operator’s encrypted basic service tier, it said. “Boxee’s competitiveness in the market will be hurt unless these consumers are guaranteed free access to a device that will decrypt basic tier cable and provide a QAM output,” it said.