Kennard Issues Ultimatum To Speed Rollout Of Digital TV
Dow Jones Newswires
LAS VEGAS -- The chairman of the Federal Communications Commission
Friday delivered an ultimatum to broadcasters and manufacturers struggling to
deliver interactive digital television to consumers: Come up with a solution by
April or face regulation.
FCC chairman William Kennard, in his clearest statement to date on the
government's role in guiding the future of digital television, chided the industry
for creating bottlenecks that have slowed the rollout of the crystal-clear
television for more than five years, the Associated Press reported.
In a speech at the giant Consumer Electronics Show, Kennard noted that many
companies were showcasing models of high-definition television -- some at
prices analysts say will prove attractive this year to consumers --with the
promise of delivering not only programming but exchanging data through
Internet connections and home networks.
But none of those televisions can be plugged into cable, the medium through
which most Americans still get their programming, because of wrangling over
technology compatibility standards for the various equipment and piracy issues,
he said.
"Your time and our patience are running out," Kennard said. "The commission
has tried to let you solve this problem. We have been goading and nagging. But
so far you have not finished the job.
"The American public will not let the commission wait much longer for you to
agree on standards, and the law gives the commission clear responsibility to act
if you do not," he said.
The first high-definition televisions began selling in late 1998, and more than 100
TV stations reaching 50% of the American people now offer the option of
receiving high-quality digital TV signals. But the pictures are eroded through
cable converters to quality not much better than traditional analog TVs, Kennard
said.
"The consumer has to be an informed buyer, with all the technologies out there,"
said technology consultant William Doolittle. "But those technologies are so
complicated, most people don't go through that process, and they're largely
driven to buy from the price. But that may give them a product that may not
necessarily be the right product when a standard is produced."
To address the problem, the chairman said he had directed to FCC to draft
proposed rules on compatibility standards and would move toward making those
rules law if interactive digital television isn't moving forward by April.
Digital technology lets broadcasters squeeze more video and data into existing
channel space, giving them numerous options. They could use it to provide high
definition TV, which offers sharper pictures then standard digital. They could
also offer additional TV channels for sports or movies, or stock quotes and
other data transmitted to home computers -- or a combination.
The technology, for example, could let people watching a favorite show click an
icon on digital TV sets and obtain information on the actors, writers and past
episodes.
And, it offers new opportunities to make money. For instance, a viewer
watching a music video could click on an on-screen icon and buy the CD.
Stations would get a piece of the money from these sales, experts say. Or
stations could share the revenues from ads that accompany online services.
But many industries involved in the interactive television effort have been more
concerned about losing money, Kennard said.
Instead of working to solve the problem quickly, cable operators are battling
with other media providers over standards that would unleash the full promise of
interactive TV because of concern about the loss of market share and
programming control, Kennard said.
Lynn Claudy, senior vice president for science and technology at the National
Association of Broadcasters, applauded Kennard for his move.
"It's really the logical conclusion to a long debate," he said. "We've gotten to this
point after about 10 years, with everyone frustrated. Maybe this will finally bring
a resolution." |
