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Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: Robert Utne who wrote (6521)	1/27/2000 11:51:00 PM
From: Robert Utne	Read Replies (1) \| Respond to of 6570

As you know, LGE now owns 100% of the rights (and future royalties) to Zenith's patented 8-VSB technology. 8-VSB is the terrestrial DTV transmission standard that the FCC has mandated for the US. The trouble is, it doesn't work as well as the competing COFDM standard. Over 400 US broadcasters have petitioned the FCC to include COFDM as a transmission standard. As a former member of ATSC, I have contacted FCC Commissioner Kennard recommending that the US also include COFDM. Below is a letter that describes the situation. You may wish to contact the FCC, too. January 25, 2000 The Honorable William E. Kennard Chairman, Federal Communications Commission The Portals 445 12th Street, SW Washington, DC 20554 Dear Chairman Kennard: I am writing to you in regards to U.S. digital television (DTV). Pace Micro Technology plc, is the world's largest dedicated manufacturer of digital set-top boxes. We have recently completed agreements with Time Warner Cable to provide 750,000 digital cable STBs over the next three years. We have had a large involvement in the initial launch and success of the ONdigital service in the UK which utilizes the COFDM/DVB-T standard. ONdigital official numbers as of Dec 1999 were 520K (this is in just a little over 12 months). This number is 1000 times more than the most generous estimates of terrestrial receivers sold in the U.S. in the same time period. It is our opinion that the ease of reception and low-cost STBs have been responsible for the incredible success of DTV in the UK. Pace has elected not to introduce a DTV receiver/STB for the U.S. market. The main reason for our reluctance has been the adoption of the 8VSB standard in the U.S. Given the recent petition submitted by the Sinclair Broadcast Group, and endorsed by several hundred television stations and other interested parties, we now believe it is time that Pace discusses the modulation standard with the Commission. Pace offers proven global experience in DTV receiver/STB development and sales. Moreover, if a U.S. COFDM standard were announced today, our belief is we could have DTV receivers/STBs on the retail shelves by the Christmas shopping season this year. It is also felt that the retail price of such an STB could be as low as $300 - $400. This is @ 50% less than the lowest U.S. DTV receiver price currently available. This low retail price point could stimulate significantly increased consumer demand for DTV and also make DTV available for middle- and lower-income families, particularly minorities, thereby helping close the digital divide, and increasing the overall rate and success of DTV adoption. Please have your staff contact me at your earliest convenience so that we may schedule a time to meet with you, your fellow Commissioners and your engineering staff. My telephone number is (561) 995-6009. Sincerely, David L. Novak Marketing Manager Pace Micro Technology - Americas 2700 North Military Trail Suite 300 Boca Raton, Florida 33431 cc: Commissioner Susan Ness Commissioner Gloria Tristani Commissioner Harold Furchtgott-Roth Commissioner Michael Powell Dale Hatfield, Office of Engineering Technology