Post by dkennedy on Jul 12, 2006 4:54:53 GMT -5
Cable, CE Firms Stage New Feuds Over CableCARDs
Rival Industries Clash Over Card Failures, Comcast Waiver Request
July 11, 2006
By Alan Breznick, Cable Digital News
Opening up a new front in the regulatory wars between the cable and consumer electronics industries, each side is heatedly blaming the other for numerous faulty installations of removable security modules in digital cable-ready TV sets and set-top boxes.
In their latest joint filing with the Federal Communications Commission (FCC), the nation's six biggest cable operators charge that consumer electronics devices now account for the lion's share of installation problems with the security modules, known as CableCARDS. Several of the large MSOs, while conceding past problems with faulty CableCARDS, pin the blame on uncooperative digital TV sets in 90% or more of the cases today.
For example, Charter Communications claims that "problems with the manufacture of digital televisions are responsible for virtually all reported CableCARD issues" that the company encountered in March, April and May. The nation's third biggest MSO chalks up at least 94% of its installation problems to "faulty host digital televisions."
Consumer electronics makers counter that cable operators and their vendors are the ones largely to blame for the malfunctioning CableCARDS. Citing "an increasing level of customer frustration with CableCARDS," electronics manufacturers argue that many cable systems don't offer enough technical support and employee training to make the system work.
In one such filing with the FCC, JVC Americas Corp. relates that it launched 16 CableCARD-ready digital TV models last year, only to run into thousands of customer complaints. With its service centers "overwhelmed with complaints and requests for service on sets that are unable to interoperate with cable headends" and its dealers "upset by customer returns of CableCARD sets," JVC has responded by slashing the number of CableCARD-ready models to nine.
The FCC requires CableCARDS to make it easier for all consumer electronic manufacturers to sell "plug-and-play" cable-ready equipment in retail stores. The idea is to promote competition against such set-top giants as Motorola and Scientific-Atlanta, which have long dominated the cable market by supplying the set-tops that MSOs lease to their customers. By separating conditional access technology from the rest of the set-top or cable-ready TV set, the FCC seeks to enable cable subscribers to use any TV set or set-top they want, simply by inserting a CableCARD module from their cable operator.
But, due to both competitive and technological reasons, CableCARDs have proven to be a market flop so far. Cable operators report that they have handed out just 170,000 modules to digital cable customers over the past couple of years, even though more than 450 different TV set and set-top models can support the modules.
In their latest filings at the FCC, the CE firms suggest that cable operators are deliberately discouraging CableCARD use so they can put more of their proprietary digital set-top boxes in subscribers' homes. The TV equipment makers note that while they have sold more than 1 million CableCARD-ready digital TVs over the last few years, cable operators have distributed CableCARDS to less than 20% of these set buyers.
But the cable guys dismiss this accusation. Contending that cable operators are "not obliged to become marketers for particular types of television sets," the National Cable and Telecommunications Association (NCTA) asserts that MSOs "have provided their customers with CableCARDS whenever the customer so requests."
Both industries gripe that their TV technicians and customer service reps are spending far too much time and money trying to get digital sets and CableCARDS to work together. They largely blame each other, however, for not putting in the necessary effort.
The latest salvos come as the two industries also grapple over a recent Comcast Corp. request for a waiver of the FCC's CableCARD mandate for three new, low-cost digital cable set-tops. Comcast, NCTA, Motorola, Scientific-Atlanta and other cable interests say the waiver would help speed the nation's transition to digital TV. But the Consumer Electronics Association (CEA) and several leading electronics makers say the waiver would further undercut support for CableCARDs.
Due to this battle, consumers will still find it tough to buy a cable-ready set or set-top box in a store and hook it up to their cable system, more than two years after the FCC put the new removable security rules into effect. Plus, the fresh regulatory fight casts a large shadow over the cable industry's efforts to shift to a more advanced downloadable security method that would feed conditional access software directly to TV sets, set-top boxes and other home entertainment gear.
The two industries are also battling over cable's plans to introduce "multi-stream CableCARDs" (M-CARDs) for two-way digital cable-ready TV sets and set-top boxes later this year. Cable operators say the M-CARDs will support any certified electronics devices while CE makers say the modules will favor MSO-backed set-tops.
Rival Industries Clash Over Card Failures, Comcast Waiver Request
July 11, 2006
By Alan Breznick, Cable Digital News
Opening up a new front in the regulatory wars between the cable and consumer electronics industries, each side is heatedly blaming the other for numerous faulty installations of removable security modules in digital cable-ready TV sets and set-top boxes.
In their latest joint filing with the Federal Communications Commission (FCC), the nation's six biggest cable operators charge that consumer electronics devices now account for the lion's share of installation problems with the security modules, known as CableCARDS. Several of the large MSOs, while conceding past problems with faulty CableCARDS, pin the blame on uncooperative digital TV sets in 90% or more of the cases today.
For example, Charter Communications claims that "problems with the manufacture of digital televisions are responsible for virtually all reported CableCARD issues" that the company encountered in March, April and May. The nation's third biggest MSO chalks up at least 94% of its installation problems to "faulty host digital televisions."
Consumer electronics makers counter that cable operators and their vendors are the ones largely to blame for the malfunctioning CableCARDS. Citing "an increasing level of customer frustration with CableCARDS," electronics manufacturers argue that many cable systems don't offer enough technical support and employee training to make the system work.
In one such filing with the FCC, JVC Americas Corp. relates that it launched 16 CableCARD-ready digital TV models last year, only to run into thousands of customer complaints. With its service centers "overwhelmed with complaints and requests for service on sets that are unable to interoperate with cable headends" and its dealers "upset by customer returns of CableCARD sets," JVC has responded by slashing the number of CableCARD-ready models to nine.
The FCC requires CableCARDS to make it easier for all consumer electronic manufacturers to sell "plug-and-play" cable-ready equipment in retail stores. The idea is to promote competition against such set-top giants as Motorola and Scientific-Atlanta, which have long dominated the cable market by supplying the set-tops that MSOs lease to their customers. By separating conditional access technology from the rest of the set-top or cable-ready TV set, the FCC seeks to enable cable subscribers to use any TV set or set-top they want, simply by inserting a CableCARD module from their cable operator.
But, due to both competitive and technological reasons, CableCARDs have proven to be a market flop so far. Cable operators report that they have handed out just 170,000 modules to digital cable customers over the past couple of years, even though more than 450 different TV set and set-top models can support the modules.
In their latest filings at the FCC, the CE firms suggest that cable operators are deliberately discouraging CableCARD use so they can put more of their proprietary digital set-top boxes in subscribers' homes. The TV equipment makers note that while they have sold more than 1 million CableCARD-ready digital TVs over the last few years, cable operators have distributed CableCARDS to less than 20% of these set buyers.
But the cable guys dismiss this accusation. Contending that cable operators are "not obliged to become marketers for particular types of television sets," the National Cable and Telecommunications Association (NCTA) asserts that MSOs "have provided their customers with CableCARDS whenever the customer so requests."
Both industries gripe that their TV technicians and customer service reps are spending far too much time and money trying to get digital sets and CableCARDS to work together. They largely blame each other, however, for not putting in the necessary effort.
The latest salvos come as the two industries also grapple over a recent Comcast Corp. request for a waiver of the FCC's CableCARD mandate for three new, low-cost digital cable set-tops. Comcast, NCTA, Motorola, Scientific-Atlanta and other cable interests say the waiver would help speed the nation's transition to digital TV. But the Consumer Electronics Association (CEA) and several leading electronics makers say the waiver would further undercut support for CableCARDs.
Due to this battle, consumers will still find it tough to buy a cable-ready set or set-top box in a store and hook it up to their cable system, more than two years after the FCC put the new removable security rules into effect. Plus, the fresh regulatory fight casts a large shadow over the cable industry's efforts to shift to a more advanced downloadable security method that would feed conditional access software directly to TV sets, set-top boxes and other home entertainment gear.
The two industries are also battling over cable's plans to introduce "multi-stream CableCARDs" (M-CARDs) for two-way digital cable-ready TV sets and set-top boxes later this year. Cable operators say the M-CARDs will support any certified electronics devices while CE makers say the modules will favor MSO-backed set-tops.