Subject: [NEXTEL-1] Another episode of the "FCC Knows Best"

From: Marcel <[email-masked]>
Date: Mon, 31 Mar 2003 13:45:24 -0500

Totally Unplugged:
Another episode
of 'FCC Knows Best'

By Ira Brodsky
Network World, 03/31/03

You would think a Bush administration FCC would take a more
market-based approach. But like its predecessor, Michael Powell's
FCC believes market forces are no substitute for the wisdom of
government officials. A case in point is the FCC's digital TV
initiative.

The FCC has sent the television industry on a forced march to the
digital future. One worthy objective is to free some of the wasted
prime spectrum for other uses. But mandating new technology is
likely to drive some vendors out of business while denying
low-income consumers access to affordable products and services.

The problem with this type of initiative is that affected parties
talk about the public's interests while acting to further their
own. TV set manufacturers would love to see mandatory digital
broadcasts because that would create a market for digital TVs.
Broadcasters would love to see TV set manufacturers forced to
produce digital TVs, ensuring audiences for digital content.

We should have learned from past technology mandates that there is
no fair way to enforce them. The result is endless tweaking in
response to objections, followed by waivers for those who can't or
won't comply.

According to a plan announced last August, manufacturers must
start incorporating digital tuners in TV sets by 2004. Virtually
all new sets must include them by 2007. VCRs and DVD recorders
must also include digital tuners by the end of the transition
period.

"Free TV" stations (unlike satellite and cable stations) are being
forced to roll out digital service. In the process, many of the
low-power TV stations that have sprung up will be displaced. While
cable operators are not required to convert, controversy swirls
around whether they must carry dual analog/digital broadcasts of
their free TV stations - a move that could knock some cable TV
channels off crowded systems.

All this is predicated on two dubious assumptions. One is that the
transition to digital TV presents a chicken-and-egg dilemma only
government can solve. The other is that nothing short of a mandate
would facilitate a robust digital TV industry.

The chicken-and-egg argument says manufacturers won't produce
plentiful digital TVs until there are abundant digital broadcasts,
and broadcasters won't offer copious digital programming until
there are ample digital TVs. But many technologies, such as CDs
and DVDs, that faced the same dilemma succeeded without government
intervention.

The idea that nothing short of a mandate provides sufficient
incentive also is misguided. Tax breaks, first dibs on new
spectrum and other enticements could be used to encourage digital
TV development without harming businesses or consumers.

The attitude of Powell's FCC boils down to this: Industry won't
move forward unless pushed, and consumers can't be trusted to make
the right purchasing decisions. This FCC-knows-best philosophy, if
applied to the 'Net, could lead to a cyberspace version of Ma
Bell.

http://www.nwfusion.com/columnists/2003/0331brodsky.html

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