FCC Orders Switch to Digital TV
Thu Aug 8,11:06 AM ET
By CONNIE CASS, Associated Press Writer
WASHINGTON (AP) - Dissatisfied with the speed at which the industry is going digital, the Federal Communications Commission ( news - web sites) voted Thursday to require television manufacturers to have digital tuners on all sets by July 2007.
Commissioners voted 3-1 to require manufacturers to add the tuners to all TV sets with screens of 36 inches and larger by July 2004, while the requirement for smaller sets would be phased in over the following three years.
Congress has mandated that the nation switch to digital TV, which offers clearer pictures and better sound. But the transition to this new technology has been delayed by reluctance within the industry to make the switch before most households can receive digital signals.
"This action will take these electronic appliances from being HDTV (High Definition Television) ready to HDTV reality," said Michael Powell, the commission's chairman.
Powell rejected industry complaints that the action would force consumers to pay more for television sets, saying the price of digital tuners would drop quickly as they are mass produced.
The dissenting vote came from Commissioner Kevin Martin, who noted that most TV viewers no longer receive their signals over the air and therefore do not need digital tuners.
"I believe the cost of this particular proposal outweighs the benefits," Martin said.
Commissioner Kathleen Abernathy said the requirement was necessary to move the switch to digital TV forward.
Without this requirement, "the transition remains stalled," she said. "There's no question in my mind."
In advance of Thursday's decision, Jenny Miller, a spokeswoman for the Consumer Electronics Association, had said, "We believe there's going to be a mandate for the inclusion of a digital broadcast television tuner in all television sets."
But she also said she felt the manufacturers might challenge such a ruling in court, if necessary.
Miller said the requirement would cost $250 for each set, amounting to an annual "TV tax" on the industry and consumers of about $7 billion. She said that with most consumers receiving television signals by cable or satellite, putting the tuner in all TVs would make people pay for a device most won't use.
Broadcasters, who need consumers to be able to receive their digital signals, support a requirement for the tuners. They call the manufacturers' cost estimates "outlandish and ridiculous."
"We don't think consumers will see any cost increase," said Dennis Wharton, a spokesman for the National Association of Broadcasters. "The simpler you make it for consumers — you build the features into the set — the faster you get to consumer acceptance of this new technology."
He said digital tuners are especially important to give people access to digital broadcasts from local stations not carried by cable or satellite.
The broadcast industry says 455 television stations are now broadcasting digital signals in markets that include nearly 90 percent of the nation's TV households. But they say less than 1 percent of the 25 million sets sold each year have digital tuners.
Congress is requiring most broadcasters to convert by 2006 from existing analog technology to more efficient digital television, which allows much more programming and data to be transmitted over one channel. Broadcasters were given second TV channels for free to do so.
When the switch is complete, broadcasters must return their analog channels to the government for other uses.
Digital TV development has stalled over a number of issues, including the limited availability of high-definition programming and the pricey equipment needed for viewers to see it.
Cable and satellite service providers also have balked at allocating additional space for digital programming, while local TV stations struggle with the cost of converting to digital signals.
WGNR Nasdaq .98...is a LOCK here...growing rev and profits and smack in the middle of HDTV:
B: WEGENER Reports Third Quarter Growth and Positive Earnings
B: WEGENER Reports Third Quarter Growth and Positive Earnings
DULUTH, Ga., Jun 24, 2002 /PRNewswire-FirstCall via COMTEX/ -- WEGENER
Corporation (Nasdaq: WGNR) today announced results for the third quarter ended
May 31, 2002. WEGENER's revenues for the third quarter of fiscal 2002 were $6.3
million, with net earnings of $379,000, or $0.03 per share, compared to revenues
of $5.4 million, with a net loss of $436,000, or $(0.04) per share, for the
third quarter of fiscal year 2001. The Company's eighteen-month order backlog
was $13.0 million at May 31, 2002.
Results for the first nine months of fiscal year 2002 showed revenue growth of
29% compared with fiscal year 2001. Actual revenues were $18.2 million with net
earnings of $768,000, or $0.06 per share, compared to revenues of $14.1 million
and a net loss of $2.2 million, or $(0.19) per share, for the first nine months
of fiscal year 2001.
"This was a great quarter both for revenue growth and earnings," stated WEGENER
President and CEO, Robert A. Placek. "While quarterly results in our business
can be uneven, our efforts to improve operational efficiency are more
consistently creating positive operating results. Improvements were seen in
gross profit margins and free cash flow compared to the same period in fiscal
year 2001. We have a strong cash position and balance sheet."
Mr. Placek continued, "The FCC's commitment to make HDTV a standard is creating
great interest in our new DTV700 digital television processor. During this
quarter we received initial orders for this new product -- the DTV700 is on
track to be both a success for the Company and an important product for the
cable industry. The Company enjoyed ongoing success in the third quarter in
private network activity. Shipments continued for Roberts Communications
Network, an industry leader in the distribution of horse racing video via
satellite. We are pursuing several customers that would give the Company
opportunities for sustained growth in the private network sector."
WEGENER Communications is an international provider of digital solutions for IP
data, video and audio networks. Applications include IP data delivery, broadcast
television, cable television, radio networks, business television, distance
education, business music, satellite paging and financial information
distribution. COMPEL, WEGENER's patented network control system provides
networks with unparalleled ability to regionalize programming and commercials
through total receiver control. COMPEL network control capability is integrated
into WEGENER digital satellite receivers. WEGENER Communications can be reached
at +1.770.814.4000 or on the World Wide Web at www.wegener.com . |
