The cable industry prepares for war over a watered-down set-top box reform proposal many companies initially supported.
You can’t please cable companies any of the time.
After months of an intense lobbying effort to kill Federal Communications Commission Chairman Thomas Wheeler’s set-top box reform proposal that would have created an open standard allowing manufacturers to compete for your box needs, the cable industry has declared war on the watered-down compromise released last week that many cable operators lobbied for as a suitable alternative.
“While we appreciate that Chairman Wheeler has abandoned his discredited proposal to break apart cable and satellite services, his latest tortured approach is equally flawed,” said Comcast’s vice president of government communications Sena Fitzmaurice in a statement. “He claims that his new proposal builds on the marketplace success of apps, but in reality, it would stop the apps revolution dead in its tracks by imposing an overly complicated government licensing regime and heavy-handed regulation in a fast-moving technological space. The Chairman’s new proposal also violates the Communications Act and exceeds the FCC’s authority.”
That’s a veiled threat Comcast may take the FCC to court if they proceed with the watered down reform policy now advocated by Chairman Wheeler.
Charter Communications, newly enlarged with Time Warner Cable and Bright House Networks in its family, also issued a statement claiming the FCC will ruin everything:
“Enabling consumers to use apps instead of set-top boxes may be a valid goal, but the marketplace is already delivering on the goal without overreaching government intervention. The FCC’s mandate threatens to bog down with regulations and bureaucracy the entire TV app market that consumers are increasingly looking to for innovation, choice and competition.”
Sensing blood in the regulatory waters, the pile on from Congress and programmers that depend on their relationships with large cable operators was inevitable and quick:
The top Democrat on the House Energy and Commerce Committee said Monday that he is doubtful.
Pallone
“While I commend Chairman Wheeler for working to solve this difficult issue, I’m concerned that this latest proposal will not work, particularly when it comes to licensing,” Rep. Frank Pallone (N.J.) said in a statement. “Ultimately, I’m skeptical that the revised plan will benefit consumers.”
Representatives of Disney, Time Warner, A&E, Scripps, CBS, Viacom, 21st Century Fox and Univision took their complaints to wavering Commissioner Jessica Rosenworcel, who has expressed some unease about the reform proposal. The programmers expressed their own strong opposition to any proposal that would allow the FCC to have any authority over the terms and conditions included in programming licensing deals. Programmers may want to retain restrictions on access, the ability to record programming, or other security matters to ensure copyright compliance on their terms, not those imposed by the FCC.
Republican FCC Commissioner Michael O’Rielly was also unimpressed.
“I will review this proposal carefully over the coming days and weeks, but at the outset it appears to exist within a fantasy world of unlimited commission authority,” O’Rielly said in a statement. “The commission is and must remain in the business of licensing spectrum and infrastructure, not content.”