Most people don’t think of TV when the subject of broadband internet comes up. That may change if the FCC gets its way. The commission is currently reviewing some of its TV policies as part of its National Broadband Plan to encourage nationwide adoption. Last month, an FCC task force identified several current hurdles to overcome, including what it calls the “Television Set-Top Box Innovation Gap.” The focus on television comes from a task force finding that 99% of American households have television sets, while only 76% have computers. Despite the relative ubiquity however, the task force notes that current innovation is limited with regard to the convergence of video, TV, and internet-based services.
This may be due to the fact that cableCARD has yet to meet its goals under the Telecommunications Act of 1996. Under the act, the FCC has authority to ensure that cable and satellite television networks are open to third-party devices. Similar to the earlier Carterfone decision (allowing customers to connect third-party phones to the AT&T network), the goal is to foster innovation through competition. Roughly the same size and shape to a laptop PCMCIA card, a cableCARD can be inserted into a compatible device, like a TiVo, and allows it to access encrypted video content such as video on demand or HD channels without requiring a separate cable box. Since the TiVo could also be connected to the internet, the ability to combine the two sources has potential for a number of interactive applications. Despite this, adoption has been slow and cableCARD devices have not yet achieved significant market share.
As a result, the FCC announced earlier this month that it is seeking public comment on methods to bridge the set-top box gap. Specifically, it stated that cableCARD “has not achieved its intended result” and therefore the commission is considering other options. This might result in a modification of the current standard, or may involve scrapping cableCARD in favor of a whole new standard. The FCC has already received numerous suggestions, ranging from complete overhauls to tweaks of the existing standard. It will be very interesting to see what direction the commission decides to take when they submit the final plan to Congress in February.