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Technology Stocks : C-Cube
CUBE 36.64-0.5%Dec 5 9:30 AM EST

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To: John Rieman who wrote (48676)2/24/2000 10:17:00 AM
From: BillyG   of 50808
 
Partial cable, DTV agreement reached
eetimes.com

By George Leopold
EE Times
(02/23/00, 6:39 p.m. EST)

WASHINGTON—The cable industry and TV manufacturers have settled
a lengthy dispute over digital TV-cable compatibility but must still
resolve copy-protection issues or face a government review.

The National Cable Television Association (NCTA), based here, and
the Consumer Electronics Association (CEA, Arlington, Va.) said
Wednesday (Feb. 23) they have reached agreement on two of four
issues holding up cable reception over digital TVs: technical standards
for direct connection of digital TVs to cable systems and on-screen
program guides.

Unresolved are disputes over licensing terms for copy protection
technology and labeling of TV sets without two-way digital
connections to other consumer devices. The Federal Communications
Commission, which has been pressing both sides for months to resolve
the DTV-cable compatibility dispute, praised the partial agreement but
warned that it would still consider proposed rules for technical
standards.

FCC Chairman William Kennard said the agreement resolves "the issues
that were holding up DTV set production. Taking into account the
lead-time required for TV set manufacturing, this will allow consumers
to buy digital cable-ready sets by Christmas-time next year."

Kennard said he will pull a proposal off the FCC's agenda on the
technical standards and program guide but would recommend
continued review of the copy protection and labeling issues.

"We can't declare victory when the game's only at halftime," agreed
FCC member Susan Ness. She also backed a regulatory review of the
copy protection and labeling issues if the two industries fail to reach
agreement soon. However, neither official mentioned a deadline for an
industry deal on the outstanding DTV-cable issues.

Copy-protection problem lingers
Both industries pledged to resolve the remaining issues in time to
avoid federal intervention, but observers said the two sides remain far
apart. The copy-protection issue involves the licensing terms applied
to copy-protection technology and the equipment used to implement
it. The labeling issue will determine how consumers are notified about
whether their digital TV set connects to other digital appliances, such
as an advanced set-top box or a digital VCR.

The two sides put the best face on the deal and vowed to continue
talks on the remaining compatibility issues. "The cable and consumer
electronics industries now have specifications that ensure that signals
transmitted on cable will be easily viewed on digital sets," said NCTA
President Robert Sachs.

"With these agreements, many more consumers will soon be able to
access the wonders of digital television through cable," added CEA
head Gary Shapiro. "This is yet another giant step forward in the
transition to DTV."

The agreement on direct connection specifies signal levels and quality
as well as video formats, the parties said. The agreement also
provides for carriage of "Program and System Information Protocol"
data on cable systems to support on-screen guide functions in digital
receivers.

The FCC has yet to act on a separate dispute about whether the
cable industry must carry digital broadcasts. The cable industry
opposes broadcasters' efforts to impose "must carry" rules for digital
broadcasts as an unconstitutional "taking" of its property.
Broadcasters argue that digital TV will not take off without mandatory
cable carriage.
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