FCC Sets Deadline for Digital TV

The Federal Communications Commission announced their ruling Thursday, mandating that all big-size television sets — those 36 inches and larger — include digital tuners by July 2004 and all smaller TV sets be equipped with the tuners between 2004 and 2007.

Digital television, also known as High Definition Television (HDTV), provides a clearer picture and improved sound quality, but only a small fraction of Americans actually use digital sets.

“This action will take these electronic appliances from being HDTV-ready to HDTV reality,” said FCC Chairman Michael Powell.

Broadcasters applauded the FCC’s decision today, since the broadcast industry needs all of its consumers to be able to receive digital signals.

Edward O. Fritts, president and chief executive officer of the National Association of Broadcasters, praised the ruling.

“The networks are moving very rapidly toward more and more schedules of digital programming,” Fritts said. “Broadcasters are doing our part. The TV manufacturers will now be doing their part.”

In 1997, the FCC had moved to require the conversion to the more efficient digital television — which can transmit more programming and data over one channel — be completed by 2006. In order to expedite the expensive transition, the FCC gave broadcasters a second television channel for free. Once the switch is complete, broadcasters must return their analog channels to the government.

Not all praised the FCC move. Many electronics manufacturers and consumer groups opposed the decision accusing the government of giving away free digital spectrum to broadcasters.

The Consumer Electronics Association, a group representing over 1,000 electronics companies, said they would appeal the ruling.

“The FCC has proven the old saying wrong that there is no such thing as a free lunch. Broadcasters are sitting on a $70 billion spectrum grant from the government,” a CEA press release stated.

“We’ll be challenging this in court, we think it’s a bad policy and we don’t think the FCC has the authority to rule in this area,” Consumer Electronics Association President Gary Shapiro said, following the open meeting in which the FCC announced its vote.

The association said the mandate would inflate consumer television prices more than $250 per set, amounting to a $7 billion “television tax” each year for consumers and the electronics industry. These figures have not been verified; other associations have calculated much lower production costs for digitally-equipped sets.

Powell rejected manufacturer complaints, saying consumer prices would drop quickly as soon as HDTV sets were mass produced and used by more Americans.

The broadcast industry says that more than 455 television stations broadcast digital signals to roughly 90 percent of the nation’s TV households, even though less than one percent of the 25 million sets sold last year actually included digital tuners. Broadcasters therefore have pushed for all TV sets include the tuners for over-the-air digital transmission.