A cable box is seen on top of a television on May 30, 2007.
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Operators must also furnish “content delivery” – in other words, the video programming itself. If the commission gets its way, its proposal will save consumers money now spent on leasing boxes from providers, and will open the doors for more consumer options.
Wheeler’s proposal will be voted on by the full FCC on February 18.
In 2007, the FCC opened wireless networks to non-carrier-provided devices.
FCC Chairman Tom Wheeler agrees with these concerns, and is expected to release a proposal in the coming days that will force telecoms to give customers a choice when it comes to their set-top box provider.
“Lack of competition has meant few choices and high prices for consumers – on average, $231 in rental fees annually for the average American household”, Wheeler said in a statement distributed Wednesday.
Consumer advocates cheered the move, but one former FCC official questioned the wisdom of creating a framework with regulations for device makers.
Operators must share their “entitlement” information – that is information about what the device is allowed to do with the content. This is where channel lineup considerations come in. “Once the information is available in a standard way people who build systems and apps can do what they do best”, he added.
This could mark just the beginning of a huge back-and-forth between the FCC and cable companies.
No matter what, cable companies are going to put up a fight, as they stand to lose billions of dollars in revenue over set-top rentals. Since there was no mandate that Wheeler act on DSTAC’s proposals, pay-TV companies and groups representing them, including the National Cable Telecommunications Association, hoped the chairman would take no action at all.
Wheeler’s proposal requires copyright protection and distribution agreements to be honored regardless of which device content is viewed on.
“It’s time to unlock the set top box and let competition stream in”. That’s “an increase of 185 percent since 1994 and more than three times the increase in the Consumer Price Index in the same period”.
Wheeler’s proposal will face opposition from cable companies and advocacy groups that are sympathetic to the industry. “This… would be a tremendous boon for viewers wanting to find the diverse programming that speaks to the needs of their communities and, potentially, allow many content creators a clear path around cable company gatekeepers and into consumers’ homes”, said coalition vice president Michael Scurato.
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If the proposal succeeds, it would be a boon to makers of over-the-top video boxes such as Apple, Roku and others.
