FCC Postpones Vote on TV Set-Top Box Plan -- Update
September 29 2016 - 5:11PM
Dow Jones News
By John D. McKinnon
Federal regulators Thursday delayed a vote on a proposal to
overhaul the market for TV set-top boxes, dealing a setback to
Federal Communications Commission Chairman Tom Wheeler on one of
his top priorities for the year.
The delay, coming so close to a presidential election that will
usher in a new administration, represents a major blow to the
proposal. But FCC members pledged to keep trying, and there were
indications an agreement remained possible, if less likely.
In a joint statement, Mr. Wheeler and fellow Democratic
Commissioners Jessica Rosenworcel and Mignon Clyburn said they had
made "tremendous progress" on the issue and are still working
toward an agreement.
Mr. Wheeler's planned overhaul is aimed at opening up the market
for set-top boxes, dominated for years by cable TV companies. He
would require the companies to make their television feeds
available as apps to other potential device manufacturers, such as
Apple Inc. and Alphabet Inc.'s Google, as well as smart-TV
makers.
Supporters say the plan could save consumers hundreds of dollars
a year in rental fees. It also could give a boost to internet-based
video alternatives to cable by allowing consumers to easily search
and access both at once.
Cable TV companies, as well as media companies, have waged a
major campaign to defeat the plan or scale it back significantly.
Many of their objections have been narrow and technical. But often
underlying those concerns has been a broad fear that Mr. Wheeler's
proposal could disrupt their longstanding, lucrative pay-TV
business model.
Worse for Mr. Wheeler, he has so far failed to win the support
of Ms. Rosenworcel, a fellow Democrat. That made it impossible for
him to secure a majority on the five-member FCC, given Republicans'
opposition.
Some public-interest groups say a compromise can still be
struck. But in practice, the delay could signal that approval will
be held up until after the November election, when the transition
to a new administration could further sap momentum for Mr.
Wheeler's plan.
Several big industry players called for a more deliberate
approach to the complex rule-making.
"We share the goal of providing consumers more options to access
their video services without the need for a set-top box," said
David Cohen, senior executive vice president of Comcast Corp. "But
heavy-handed government regulation, based on questionable legal
authority in a fast-moving marketplace, will stop the apps
revolution dead in its tracks and delay consumer choice."
In effect, Thursday's standoff underscores the difficulty of
merging the old cable-TV realm with the new online streaming
world.
Cable companies worry about having to share their customers'
subscription information and other data with other set-top box or
device makers. They also object to the potential of new FCC
oversight of their deals with media companies and the new device
makers.
Media companies such as The Walt Disney Co., Time Warner Inc.,
CBS Corp. and 21st Century Fox Inc. also worry about the FCC's
potential meddling in their deals, saying the commission lacks
legal authority to force licensing terms.
Mr. Wheeler and his aides appeared to take several steps toward
the media and cable firms in recent weeks by, for example, scaling
back their plans for government oversight of licensing deals.
The FCC also has struggled to configure a standards-setting body
for building the cable apps.
A leading congressional critic of the current set-top box
market, Sen. Edward Markey (D., Mass.), said he was "extremely
disappointed" by the delay.
"Consumers have waited for more than two decades for the promise
of a robust set-top box marketplace to be fulfilled; they should
not have to wait one more billing cycle," he said.
Write to John D. McKinnon at john.mckinnon@wsj.com
(END) Dow Jones Newswires
September 29, 2016 16:56 ET (20:56 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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