FCC grants set-top box waivers for Verizon and company

July 3, 2007 - The US Federal Communications Commission (FCC) has approved last-minute waivers for Verizon Communications and a few other cable operators, reprieving them from a mandate requiring all new set-top boxes to have removable security from 1 July.

Verizon will now be able to continue to signing up customers to its fast-growing FiOS television service, rather than risk enforcement action, but others were not so lucky.  The FCC denied a blanket request made by the National Cable & Telecommunications Association (NCTA) for all cable operators, and also denied waivers requested from nearly a dozen other small- and medium-sized multi-service operators (MSOs) for entry-level set-top boxes.  To ease the transition however, the FCC deferred enforcement for this latter group, which includes Armstrong Utilities, Cable & Communications and Mid-Rivers Telephone Cooperative, Massillon Cable TV, Atlantic Broadband, Suddenlink Communications and Knology, until 1 September 2007. 

The President of the American Cable Association (ACA), Matthew Polka, commented: “At a time when consumer prices are rising, it is inexplicable that the FCC Media Bureau would deny small cable operators’ waiver requests and force their subscribers to pay $2 to $3 or more per month for new cable boxes.”  Mr. Polka continued: “Policymakers at the FCC appear out of touch with consumers in underserved areas whose cable companies are already trying to manage the costs of upgrading their facilities to provide advanced voice, video and data services.”

The FCC mandate is intended to create a more competitive retail environment for set-top boxes, currently dominated by Scientific Atlanta, Motorola and Pace Micro Technology.  In a statement released on 29 June, FCC chairman Kevin Martin stated: “Congress and the Commission envisioned consumers being able to walk into their local retail store and buy televisions and set-top boxes from any manufacturer that would work on any cable system.  This is a goal that I share and believe we are a big step closer with today’s rulings.” 

One large operator which did not get its waiver request approved before the deadline was Comcast, which has sought to continue acquiring and deploying entry-level set-top boxes with integrated security, and has requested a full a FCC review into the matter.