10/19. Sen. Jon Kyl (R-AZ), Sen. Joe Lieberman (D-CT), Sen. Susan Collins (R-ME), and Rep. Sue Myrick (R-NC) sent a letter to Julius Genachowski (FCC Chairman), Janet Napolitano (Secretary of Homeland Security), Ron Kirk (U.S. Trade Representative), and Robert Mueller (FBI Director) regarding U.S. companies' purchase of telecommunications equipment from People's Republic of China companies.

If PRC companies were to seek to acquire a U.S. telecommunications company, that would be subject to review by the Department of the Treasury's (DOT) Committee on Foreign Investment in the United States (CFIUS). However, there is no such proposed transaction.

The three Senators and one Representative wrote "to request information concerning the FCC's plans for ensuring the security of our nation’s telecommunications networks".

They elaborated that "two Chinese companies, Huawei Technologies Co., Ltd. and ZTE Corporation, are aggressively seeking to supply sensitive equipment for U.S. telecommunications infrastructure and/or serve as operator and administrator of U.S. networks, and increase their role in the U.S. telecommunications sector through acquisition and merger. We understand they are in active discussions with two U.S. companies -- Sprint and Cricket -- and other prospective deals may be on the horizon."

They argued in this letter that "The sensitivity of information transmitted in communications systems, as well as the potential for foreign espionage, requires that the U.S. government take decisive action to ensure the security of our telecommunications networks."

They added that "when telecommunications carriers purchase equipment from Huawei, the result is that U.S. communications will travel over switches, routers, and other equipment that was manufactured and designed in China and may be remotely accessed and programmed from that country".

They asked, "Does the FCC have the legal authority to review (in consultation and coordination with other agencies) foreign technologies, including equipment and software, to determine the risk posed to U.S. telecommunication networks? Is it doing so? How?" (Parentheses in original.)

They also asked, "Does the FCC believe there are risks to U.S. telecommunications carriers buying foreign technology that may subject U.S. telecommunications networks to increased risk of espionage or interference with operations? What are those risks?"

They also asked about the impact of purchases from Huawei and ZTE on "effective implementation" of the Communications Assistance for Law Enforcement Act (CALEA).

10/19. The Federal Communications Commission (FCC) released a Memorandum Opinion and Order (MOO) [25 pages in PDF] in its XM Sirius satellite radio antitrust merger review proceeding.

This MOO relates to the FCC's mandate (which the FCC describes as the companies' "voluntary commitment") that it imposed as a condition for approval of the merger years ago, that XM and Sirius lease a portion of their channel capacity to "Qualified Entities".

XM and Sirius announced their merger plans on February 19, 2007. See, story titled "XM and Sirius Announce Plans to Merge" in TLJ Daily E-Mail Alert No. 1,540, February 20, 2007. On March 24, 2008, the Department of Justice's (DOJ) Antitrust Division announced that it would not challenge the merger. It imposed no conditions. See, story titled "DOJ Won't Challenge XM Sirius Merger" in TLJ Daily E-Mail Alert No. 1,736, March 25, 2008.

The FCC delayed its approval, with conditions, until July of 2008. See, story titled "FCC Approves XM Sirius Merger" in TLJ Daily E-Mail Alert No. 1,800, July 25, 2008. It required, among many other things, that the merged entity set aside channels for noncommercial, educational and informational programming.

Commissioner Michael Copps (at right) wrote in his statement that this MOO "attempts to make sense out of one of those voluntary commitments -- for Sirius-XM to lease a portion of its channel capacity to Qualified Entities. Following approval of the merger, it quickly became apparent that this particular condition -- perhaps well-intentioned, but hastily and inartfully drawn -- was going to cause problems. It did, and it has taken more than two years to get to today's solution."

FCC Chairman Julius Genachowski wrote in his statement that this MOO will "foster the availability of diverse programming to satellite radio subscribers and to promote access to the satellite radio platform for independent programmers and new entrants, including small businesses, women, and minorities. This Order ensures that Sirius XM will reserve channels for programmers truly independent of Sirius XM, who will be new voices on the satellite radio platform, providing original programming of a type not already available, or service to historically underserved audiences."

This MOO is FCC 10-184 in MB Docket No. 07-57. The FCC adopted it on October 18, 2010, and released it on October 19.

10/19. Sen. Frank Lautenberg (D-NJ) and Sen. Robert Menendez (D-NJ) sent a letter to Federal Communications Commission (FCC) Chairman Julius Genachowski on October 18, 2010, regarding the Fox Cablevision retransmission consent negotiations.

They wrote that "News Corp. (FOX) and Cablevision recently failed to reach an agreement for the retransmission of WNYW (NY channel 5), WWOR (NJ channel 9) and WTXF (Philadelphia channel 29). Because FOX has been unwilling to keep its signal on while the parties continue to negotiate, approximately 3 million Cablevision subscribers in New Jersey, New York and Connecticut are left without access to these broadcast channels, and the local news, sports, and other programming they offer."

They asked that "the FCC take immediate action to move the parties to a prompt resolution of this dispute and to minimize the impact of future disputes."

Genachowski issued a statement regarding the Fox Cablevision negotiations on October 19. He wrote that "I am deeply troubled that Cablevision and Fox are spending more time attacking each other through ads and lobbyists than sitting down at the negotiating table. The time for petty gamesmanship is over. I have called the CEOs of both companies and reiterated the importance of reaching a deal, as many companies have done before. I reminded the companies that they share responsibility for consumer disruption, and that they shouldn't punish consumers because of their unwillingness to reach a deal. I also insisted that they negotiate in good faith. We will continue to scrutinize their actions very closely."

See also, Genachowski's October 15 statement, and FCC consumer advisory.

10/14. The Federal Communications Commission (FCC) adopted and released a Notice of Proposed Rulemaking (NPRM) [32 pages in PDF] that proposes to regulate the billing and notice practices of mobile service providers. The FCC and proponents of such regulations describe this as "bill shock" relief.

This NPRM states that it proposes rules that would require "mobile service providers to provide usage alerts and information that will assist consumers in avoiding unexpected charges on their bills".

The FCC also released another paper on "bill shock" on October 13. This paper defines "bill shock" as "a sudden, unexpected increase in their mobile bill from one month to the next".

The proposed rules do not define the term "mobile service provider". The NPRM asks, "Should any rules we adopt apply to all communications services provided by mobile wireless providers, including voice, text, and data services? Should providers of mobile data services that do not also offer Commercial Mobile Radio Service (CMRS) be included?"

The proposed rules would require that these providers "shall provide notification alerts when: (1) subscribers are approaching an allotted limit for voice, text, and data usage. (2) subscribers have reached their monthly allotment limit and begin incurring overage charges for any subsequent use of that service. (3) subscribers will incur international or roaming charges that are not covered by their monthly plans, and notification if they will be charged at higher than normal rates."

The FCC issued a Public Notice regarding imposing a "bill shock" regulatory regime on wireless service providers in May of this year. It also released another paper in May. See, stories titled "FCC Starts Bill Shock Proceeding" and "FCC Releases Paper on Consumer Understanding of Cell Phone Billing Practices" in TLJ Daily E-Mail Alert No. 2,088, May 27, 2010.

On October 13 the FCC released an advocacy paper in support of the proposed rules contained in the just released NPRM. It states that there were "764 bill-shock complaints in the first six months of 2010".

Also, Sen. Tom Udall (D-NM) introduced S 3872 [LOC | WW], the "Cell Phone Bill Shock Act of 2010" on September 30, 2010. See, story title "Sen. Tom Udall Introduces Bill to Regulate Cell Phone Billing Practices" in TLJ Daily E-Mail Alert No. 2,137, October 1, 2009.

The FCC's consideration of "bill shock" is limited to sudden unexpected increases in monthly bills. First, it does not go to consumers' reactions to the pricing of mobiles services.

Second, the FCC's papers and NPRM do not address whether or not consumers are shocked by the extent of federal and state taxes, fees and mandatory contributions that are collected from them regularly via their monthly bills. The FCC's papers do not reveal whether more consumers are shocked by the prices of mobile services, the amount of taxes that they pay, or sudden unexpected increases in their monthly bills.

Steve Largent, head of the CTIA, stated in a release that he hopes that the FCC will also consider "the discriminatory 15 percent in taxes and fees that wireless consumers pay each month, which is more than double the rate for other taxable goods and services." He added that "this tax policy makes zero sense as it will not advance broadband adoption or deployment".

Largent also encourage the FCC to "stop states from raiding their E911 funds. Millions of wireless customers pay the monthly ‘911 tax and fee,’ believing that their contributions will ensure that first responders are properly equipped to handle the more than 300,000 wireless distress calls they receive every day. Unfortunately, an August 2010 FCC report said that 13 states used 911 funds to support programs other than 911/E911, including 10 states that used it to close budget gaps in their general funds." See, FCC report [PDF] and story titled "FCC Reports that States Divert 911/E911 Fees to Subsidize other Programs" in TLJ Daily E-Mail Alert No. 2,126, August 19, 2010.

Largent also urged the FCC "to take meaningful action to address violations of the Telecommunications Consumer Protection Act (TCPA), which includes unwanted or 'SPAM' messages and calls to wireless consumers by third parties. In 2009, the FCC received nearly 48,000 wireless TCPA-related complaints -- nearly 32 times the number of estimated annual 'bill shock' complaints."

Chairman Genachowski noted in his statement that "iPad users are automatically signed up for text alerts from AT&T when they are about to incur overage charges". He argued that mandating notices for other services would be "non-burdensome measures" that could be implemented "easily and inexpensively".

In contrast, Commission Robert McDowell wrote in his statement that "While it may be tempting to shrug off regulatory costs, the reality is that businesses pass on their costs to consumers. We all pay for the cost of government mandates."

Commissioner Copps asserted in his statement that the FCC is a "consumer protection agency", but that the FCC "has spent more time listening and responding to the interests of big business than to consumers". This item, he said, is consumer friendly.

There is also an anti-competitive aspect to these proposed rules. Like the disability access requirements imposed by the just enacted 21st Century Communications and Video Accessibility Act, as well existing FCC rules, such as those regarding location surveillance and the CALEA, the rules proposed in the just released NPRM would impose design mandates and costs on service providers.

Moreover, smaller companies, new entrants, and providers of lower priced services are likely to be more adversely impacted. In addition, large incumbent companies are more adept at participating in FCC proceedings and influencing FCC rules to their advantage than smaller and new service providers.

FCC Commissioner Meredith Baker (at right) wrote in her statement that "we risk imposing costs on providers that could result in higher prices and lower quality of service for consumers. Upgrades to providers' billing systems may be expensive and burdensome for smaller providers and prepaid services and put them at a competitive disadvantage."

This NPRM is FCC 10-180 in CG Docket No. 10-207 and CG Docket No. 09-158. Initial comments will be due within 30 days of publication of a notice in the Federal Register. Reply comments will be due within 60 days. As of the October 19, 2010, issue of the Federal Register this notice had not yet been published.

10/14. The Federal Communications Commission (FCC) adopted a Notice of Proposed Rulemaking (NPRM) regarding universal service subsidies and certain 3G and next generation wireless services.

It proposes to use reserves accumulated in the Universal Service Fund (USF) to create a new Mobility Fund (MF), the purpose of which would be to improve coverage of current generation or better mobile voice and internet service for consumers in areas where such coverage is currently missing, and to do so by supporting private investment.

This NPRM asserts that the FCC does not propose to increase the size of the USF or to increase universal service taxes. However, the only funding proposed by this NPRM for this MF would be a one time transfer of funds relinquished by Verizon Wireless and Sprint. This NPRM does not state how the FCC would sustain this subsidy program.

This NPRM proposes that the mechanism for distribution of these subsidies would be reverse auctions.

FCC Commissioner Robert McDowell (at left) wrote in his statement that "the distribution of these funds by the Universal Service Administrative Company (USAC) may result in a significant expansion of USAC". He also questioned how the FCC can "ensure that a new program does not result in an increase in the overall size of the universal service fund".

FCC Commissioners made their usual calls for reform of the universal service tax and subsidy programs. Chairman Julius Genachowski wrote in his statement that "the status quo for USF is unsustainable. The current program is designed to support the communications networks of the past, not the future. It is -- we have to acknowledge -- filled with inefficiencies, providing, for example, annual subsidies of more than $10,000 a line to carriers serving communities where there are unsubsidized competitors. And it is poorly targeted in too many respects, with perverse incentives and the result that millions of Americans remain unserved by broadband."

Commissioner Meredith Baker wrote in her statement that the FCC should "not lose sight of the need for comprehensive reform of Universal Service. I believe that it is critical to move toward fundamental reform of the Universal Service Fund, targeted to broadband investment. We need to transition to a support mechanism that is effective, efficient, and sustainable for areas where market forces are not sufficient to drive broadband services to America’s consumers. I would not want to let our work on the Mobility Fund in any way detract from our collective focus on the difficult business of comprehensive, cost-effective reform."

This item is FCC 10-182 in WT Docket No. 10-208. Initial comments will be due within 45 days of publication of a notice in the Federal Register. Reply comments will be due within 75 days. As of the October 19, 2010, issue of the Federal Register this notice had not yet been published. See also, FCC release.

The House is in recess until November 15.

The Senate is in recess until November 12, except for pro forma sessions.

12:00 NOON - 1:00 PM. The American Bar Association's (ABA) Young Lawyers Division will host a teleconferenced panel discussion titled "Legal and Technological Issues in Making Content Accessible to Individuals with Disabilities". This panel will address S 3304 [LOC | WW] and S 3828 [LOC | WW], the "Twenty-First Century Communications and Video Accessibility Act of 2010". The speakers will be Joshua Pila (LIN Media), Ann Bobeck (National Association of Broadcasters), Matthew Gerst (CTIA), Diane Burstein (National Cable & Telecommunications Association), and Mark Richert (American Federation for the Blind). See, notice. No CLE credits. The deadline to register is October 12.

1:00 - 2:30 PM. The American Bar Association (ABA) will host a teleconferenced panel discussion titled "Estate Planning with Intellectual Property: An Estate Planning Primer for IP Attorneys and an IP Primer For Estate Planners whose Clients Own Copyrights and Patents". The speakers will be Kate Spelman (Cobalt) and Lee-ford Tritt (University of Florida Levin College of Law). See, notice. CLE credits. Prices vary.

1:30 - 4:30 PM. The Department of Homeland Security's (DHS) National Infrastructure Advisory Council (NIAC) will meet. See, notice in the Federal Register, October 4, 2010, Vol. 75, No. 191, at Pages 61160-61161. Location: Hilton Washington Embassy Row, 2015 Massachusetts Ave., NW.

6:00 - 8:15 PM. The Federal Communications Bar Association (FCBA) will host an event titled "Incentive Auctions -- If Congress Grants the FCC Authority to Conduct Incentive Auctions, What's Next?". CLE credits. Prices vary. Reporters may be barred. Location: Wiley Rein, 1776 K St., NW.

8:30 AM - 1:30 PM. The President's Committee on the National Medal of Science will hold a closed meeting. See, notice in the Federal Register, October 5, 2010, Vol. 75, No. 192, at Page 61520. Location: Hilton Arlington Hotel, 950 North Stafford Street, Arlington, VA.

6:00 - 9:15 PM. The DC Bar Association will host a panel discussion titled "Open Source Licensing Fundamentals for Lawyers". The speakers will be Victoria Hall, Daniel Berlin (Google), and John Westermeier (Finnegan Henderson). The price to attend ranges from $89 to $129. Reporters are barred from attending most DC Bar events. CLE credits. See, notice. For more information, call 202-626-3488. Location: DC Bar Conference Center, 1101 K St., NW.

Day one of a two day event hosted by TechAmerica titled "2010 Vision Conference". Location: Waterford Conference Center, Springfield, VA.

8:30 AM - 5:00 PM. Day one of a two day partially closed meeting of the Department of Commerce's (DOC) Bureau of Industry and Security's (BIS) Emerging Technology and Research Advisory Committee (ETRAC). This meeting will be held on site, and by teleconference. See, notice in the Federal Register, October 12, 2010, Vol. 75, No. 196, at Pages 62508-62509. Location: DOC, Hoover Building, Room 3884, 14th Street between Pennsylvania and Constitution Avenues, NW.

10:00 AM - 2:45 PM. The Federal Communications Commission (FCC) will host an event titled "Spectrum Summit". See, notice and agenda. The FCC will webcast this event. Location?

12:00 NOON - 1:15 PM. The American Bar Association's (ABA) will host a teleconferenced panel discussion titled "Can You Afford to Ignore Social Media? How to Market Your Mediation Practice in 2010". See, notice. Prices vary. CLE credits. The deadline to register is October 18.

12:00 NOON The Federal Communications Bar Association (FCBA) will host a lunch. The speaker will be Lawrence Strickling, head of the National Telecommunications and Information Administration (NTIA). Prices vary. Registrations and cancellations are due by 12:00 NOON on October 19. Location: Mayflower Hotel, 1127 Connecticut Ave., NW.

12:30 - 1:30 PM. The American Bar Association (ABA) will host a teleconferenced panel discussion titled "Representing Third Party Clients Subject to an Antitrust Agency's Formal Information Request". The speakers will be Matthew Bester (DOJ Antitrust Division), Eric Enson (Jones Day), Sandeep Joshi (Torys), and Carla Hine (McDermott Will & Emery). See, notice. Free.

2:40 PM. The Federal Trade Commission's (FTC) Bureau of Economics will host a presentation titled "The Democratization of Research and Development". The speakers will be Bob Hunt (Federal Reserve Bank of Philadelphia) and Leonard Nakamura (FRB Philadelphia). For more information, contact Loren Smith at lsmith2 at ftc dot gov or Tammy John at tjohn at ftc dot gov. Location: ground floor Conference Center, 601 New Jersey Ave., NW.

Day two of a two day event hosted by TechAmerica titled "2010 Vision Conference". Location: Waterford Conference Center, Springfield, VA.

Day one of a three day event hosted by the American Intellectual Property Law Association (AIPLA) titled "AIPLA 2010 Annual Meeting". See, conference brochure and schedule [PDF]. Location: Marriott Wardman Park.

8:30 - 10:45 AM. Day two of a two day partially closed meeting of the Department of Commerce's (DOC) Bureau of Industry and Security's (BIS) Emerging Technology and Research Advisory Committee (ETRAC). This meeting will be held on site, and by teleconference. See, notice in the Federal Register, October 12, 2010, Vol. 75, No. 196, at Pages 62508-62509. Location: DOC, Hoover Building, Room 3884, 14th Street between Pennsylvania and Constitution Avenues, NW.

9:00 AM - 12:00 NOON. The Technology Policy Institute (TPI) will host a conference titled "Antitrust and the Dynamics of Competition in High-Tech Industries". See, notice. Location: Polaris Suite, Ronald Reagan Building and International Trade Center.

9:30 AM - 5:00 PM. The Federal Communications Commission's (FCC) North American Numbering Council (NANC) will meet. See, notice in the Federal Register, October 4, 2010, Vol. 75, No. 191, Page 61140-61141. Location: FCC, Room TW-C305, 445 12th St., SW.

Day two of a three day event hosted by the American Intellectual Property Law Association (AIPLA) titled "AIPLA 2010 Annual Meeting". See, conference brochure and schedule [PDF]. Location: Marriott Wardman Park.

Day three of a three day event hosted by the American Intellectual Property Law Association (AIPLA) titled "AIPLA 2010 Annual Meeting". See, conference brochure and schedule [PDF]. Location: Marriott Wardman Park.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Further Notice of Proposed Rulemaking (NPRM) [79 pages in PDF] regarding expanding the FCC's disability access technology mandates. The FCC adopted and released this item on August 5, 2010. It is FCC 10-145 in WT Docket No. 07-250. See, notice in the Federal Register: September 8, 2010, Vol. 75, No. 173, at Pages 54546-54560. See also, story titled "FCC Adopts Disability Access Policy Statement, Order, and NPRM" in TLJ Daily E-Mail Alert No. 2,120, August 6, 2010.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking and Notice of Inquiry [102 pages in PDF] regarding the use of microwave for wireless backhaul. The FCC adopted and released this item on August 5, 2010. It is FCC 10-146 in WT Docket Nos. 10-153, 09-106, and 07-121. See, story titled "FCC Adopts Wireless Backhaul NPRM and NOI" in TLJ Daily E-Mail Alert No. 2,120, August 6, 2010, and notice in the Federal Register, August 24, 2010, Vol. 75, No. 163, at Pages 52185-52209.

9:00 AM. The Department of Commerce's (DOC) Bureau of Industry and Security's (BIS) Sensors and Instrumentation Technical Advisory Committee (SITAC) will hold a partially closed meeting. This meeting will be held on site, and by teleconference. See, notice in the Federal Register, October 12, 2010, Vol. 75, No. 196, at Page 62508. Location: DOC, Hoover Building, Room 3884, 14th Street between Pennsylvania and Constitution Avenues, NW.

11:00 AM - 12:00 NOON. The Federal Communications Commission's (FCC) Advisory Committee for the 2012 World Radiocommunication Conference will meet. See, notice in the Federal Register: October 6, 2010, Vol. 75, No. 193, at Pages 61756-61757. Location: FCC, Room TW-C305445 12th St., SW.

2:00 - 3:30 PM. The Department of Justice's (DOJ) Antitrust Division will host a presentation titled "Supersize It: The Growth of Retail Chains and the Rise of the Big Box Retail Format". The speaker will be Emek Basker (University of Missouri) one co-author of a paper [PDF] with the same title. For more information, contact Thomas Jeitschko at 202-532-4826 or atr dot eag at usdoj dot gov. Location: Liberty Square Building, 450 5th St., NW.

Four papers will be presented:
   (1) "Antitrust in High-Tech Industries: The Three Major Recent Monopolization Cases", by Robert Crandall (Brookings Institution) and Charles Jackson (Adjunct Professor of Electrical Engineering, George Washington University).
   (2) "Antitrust and Vertical Integration in ``New Economy´´ Industries", by Bruce Owen (Stanford University).
   (3) "Does Antitrust Enforcement in High Tech Markets Benefit Consumers? Stock Price Evidence from FTC v. Intel", by Joshua Wright (George Mason University Law School).
   (4) "Cloud Computing: Architectural and Policy Implications", by Christopher Yoo (University of Pennsylvania Law School).

Four persons will discuss these papers:
   (1) Joseph Farrell ( Director of the Federal Trade Commission's Bureau of Economics).
   (2) Carl Shapiro (Deputy Assistant Attorney General for Economics at the Department of Justice's Antitrust Division).
   (3) Tim Brennan (University of Maryland, Baltimore County).
   (4) Michael Salinger (Boston University School of Management).

10/14. The Federal Communications Commission (FCC) adopted a Third Report and Order and Order on Reconsideration amending the FCC's CableCARD rules.

The Congress attempted in the Telecommunications Act of 1996 to provide for competition in set top boxes and other navigation devices used by consumers to access services from multichannel video programming distributors (MVPDs), such as cable companies, by adding Section 629 to the Communications Act. It is codified at 47 U.S.C. § 549.

This section requires the FCC to "adopt regulations to assure the commercial availability, to consumers of multichannel video programming and other services offered over multichannel video programming systems, of converter boxes, interactive communications equipment, and other equipment used by consumers to access multichannel video programming and other services offered over multichannel video programming systems, from manufacturers, retailers, and other vendors not affiliated with any multichannel video programming distributor".

But, as FCC Chairman Julius Genachowski (at left) wrote in his statement, "the current CableCARD approach isn't working". He wrote that "it's been more difficult for consumers to use set-top boxes bought at retail than to use boxes leased from the cable operator. And indeed only a tiny fraction of cable subscribers have chosen to buy a set-top box."

This item summarizes the new rules as follows: "(1) require cable operators to support the reception of switched digital video services on retail devices to ensure that subscribers are able to access the services for which they pay regardless of whether they lease or purchase their devices; (2) prohibit price discrimination against retail devices to support a competitive marketplace for retail devices; (3) require cable operators to allow self-installation of CableCARDs where device manufacturers offer device-specific installation instructions to make the installation experience for retail devices comparable to the experience for leased devices; (4) require cable operators to provide multi-stream CableCARDs by default to ensure that cable operators are providing their subscribers with current CableCARD technology; and (5) clarify that CableCARD device certification rules are limited to certain technical features to make it easier for device manufacturers to get their products to market."

It adds that "We also modify our rules to encourage home-networking by simplifying our set-top box output requirements. In addition, we adopt a rule to promote the cable industry’s transition to all-digital networks by exempting all one-way set-top boxes without recording functionality from the integration ban."

Kyle McSlarrow, head of the National Cable & Telecommunications Association (NCTA), commended this item in a release. He wrote that "We agree with the Commission that implementing these changes -- including increasing options for self-installation, providing more transparency and properly equipping technicians -- will assist customers who use retail devices that rely on CableCARDs. Our industry will work diligently to implement these changes. We also will continue working constructively with TiVo and other providers of retail 'cable ready' products to assure that our mutual customers can seamlessly enjoy all of the cable services available to them."

Gary Shapiro, head of the Consumer Electronics Association (CEA), applauded this item in a release. He wrote that "consumers may finally come to realize the benefits of competition in the marketplace for devices that attach to pay-TV provider networks. It has been 14 years since Congress responded to consumer frustration and required cable to allow cable boxes to be sold competitively."

He continued that "The availability of Internet-TVs and implementing a robust CableCARD regime will yield greater choice in how consumers view video in their homes. Strict enforcement of the FCC's CableCARD rules, together with a consumer's ability to self-install CableCARDs into competitive devices, billing transparency and support for switched digital by MVPDs all set the stage for real competition and further innovation. Just like the historic FCC Carterphone decision in 1968 on telephone interfaces launched a communications revolution in telecommunications, so too could this historic decision create new opportunities for innovation and consumer choice."

This item is FCC 10-181 in CS Docket No. 97-80 and PP Docket No. 00-67.

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