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Technology Stocks : HDTV: Television of the future here now

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To: Dennis Roth who wrote (48)8/5/2002 9:49:31 PM
From: Ron   of 152
 
A Decision on Digital Television Expected this Week
By AMY HARMON New York Times
The federal government's languishing effort to provide the nation's couch potatoes with digital TV signals is
expected to lurch forward this week, as the Federal Communications Commission prepares to vote on two
contentious issues that are seen as crucial to igniting a market for digital broadcasts and the TV sets to watch
them on.

At the urging of several members of Congress, the F.C.C. is set to decide on Thursday on a regulation proposed
in January 2001 that would require consumer electronics makers to include digital tuners in all new TV sets by
2006. The idea is that if enough sets are sold with the proper receivers, broadcasters will have more incentive to
provide programs to watch on them — giving people more reason to buy the televisions.

But the measure is opposed by the Consumer Electronics Association, which argues that the rule would add as
much as $250 to the average price of a TV set. Besides, opponents argue, the ruling would be meaningful only
for the approximately 15 percent of Americans who receive their TV signal via over-the-air broadcasts, rather
than through cable or satellite providers.

Many consumer electronics executives instead favor a regulation that would require cable companies to carry all
local digital TV broadcast signals on their systems. But cable companies complain that such a rule would unfairly
restrict their capacity to carry more varied programming.

The F.C.C. also plans to address the explanation that major Hollywood studios give for why they have declined to
release their most valuable movies and television shows in digital broadcast format: the lack of technology to
prevent viewers from recording and copying the material onto the Internet. The agency will open a debate over
whether manufacturers should be required to embed antipiracy technology into their products.

Representatives from Hollywood, Silicon Valley and the consumer electronics industry failed to reach consensus
on that question during negotiations held over the last year. Technology executives argue that any such protective
technology measure could be easily broken by pirates, and therefore is not worth the added expense that
manufacturers would presumably pass on to consumers.
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