***FCC Rules on Digital Must-Carry
(January 26)

According to the EE Times, the Federal Communications Commission
(FCC) has tentatively ruled that cable operators may not be
forced to carry digital broadcasts on their systems until a local
broadcaster returns its analog spectrum. At the same time, the
agency said it would seek additional information on the issue
before reaching a final decision.

The ruling falls short of settling the controversial digital
"must carry" issue, which has divided broadcasters and cable
operators since the launch of digital TV in the United States in
the mid-1990s. The must-carry rule would have required cable
operators to transmit programming digitally.

In the latest ruling, the FCC concluded that a digital must-carry
requirement would unduly burden the First Amendment rights of
cable operators.

New FCC chairman Michael Powell said the ruling provides the
clarity that the cable and broadcast sectors have been anxiously
awaiting. However, several FCC members dissented from all or part
of the ruling, and industry groups said a host of outstanding
legal and technical issues remain unresolved.

Broadcasters had been seeking an FCC order that required cable
operators to carry both analog and digital programming over their
systems. Cable operators countered that the "dual carriage"
scheme would limit the capacity of their systems and that such a
ruling would be an unconstitutional taking of their property.

After several years of delay, the FCC tentatively sided with
cable operators while arguing that its must-carry decision, along
with other measures such as ensuring the availability of set-top
boxes, would help speed the transition to digital broadcasting.

The National Association of Broadcasters vowed to continue its
effort to require cable operators to carry digital programming.

Wave Issue 0105 1/26/01 Article 1-02