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 NEWS  News  media  Information  202  /  418-  0500  Fax-  On-  Demand  202  /  418-  2830  TTY  202/  418-  2555  Internet:  http://  www.  fcc.  gov  ftp.  fcc.  gov  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974).  FOR  IMMEDIATE  RELEASE  NEWS  MEDIA  CONTACT:  September  10,  2003  Michelle  Russo  202-  418-  2358 
 FCC  EASES  DIGITAL  TV  TRANSITION  FOR  CONSUMERS  Competition,  Convenience,  and  Simplicity  Cited  as  Key  Goals  of  “Plug  and  Play”  Rules 
 Washington,  D.  C.  -  The  Federal  Communications  Commission  (FCC)  today  took  another  step  forward  in  the  transition  to  digital  television.  The  FCC  adopted  rules  for  digital  “plug  and 
 play”  cable  compatibility,  which  is  a  key  piece  of  the  digital  television  puzzle.  In  a  “plug  and  play”  world,  consumers  can  plug  their  cable  directly  into  their  digital  TV  set  without  the  need  of 
 a  set-  top  box.  The  FCC  said  the  new  rules  will  ease  the  transition  to  digital  TV  by  promoting  competition,  convenience  and  simplicity  for  consumers. 


 On  December  19,  2002,  the  cable  and  consumer  electronics  industries  filed  with  the  FCC  a  Memorandum  of  Understanding  (MOU)  containing  both  voluntary  and  inter-  industry  agreements 
 and  a  package  of  regulatory  proposals.  Today’s  Second  Report  and  Order  adopts  the  proposed  technical,  labeling  and  encoding  rules  with  certain  modifications. 


 The  new  rules  will  permit  TV  sets  to  be  built  with  “plug  and  play”  functionality  for  one-way  digital  cable  services,  which  include  typical  cable  programming  services  and  premium 
 channels  like  HBO  and  Showtime.  Consumers  will  have  to  obtain  a  security  card  (often  called  a  “POD”  or  “cable  card”),  from  their  local  cable  operator,  to  be  inserted  into  the  TV  set. 


 Consumers  will  still  need  a  set-  top  box  to  receive  two-  way  services  such  as  video  on  demand,  impulse  pay-  per-  view  and  cable  operator-  enhanced  electronic  programming  guides.  The 
 FCC  noted  that  the  cable  and  consumer  electronics  industries  continue  to  work  on  the  development  of  an  agreement  for  two-  way  “plug  and  play”  receivers  that  would  eliminate  the  need  for  a  set-  top 
 box  to  receive  these  advanced  cable  services.  The  FCC  encouraged  the  cable  and  consumer  electronics  industries  to  consult  with  interested  parties  and  affected  industries  as  the  two-  way 
 negotiations  progress. 
 The  cable  and  consumer  electronics  industries  also  filed  a  model  license  for  the  DFAST  scrambling  technology,  which  protects  content  from  unauthorized  use.  Although  the  parties  did  not 
 seek  regulatory  action  on  the  license,  it  contemplates  FCC  review  of  certain  issues  in  case  of  dispute.  The  FCC  concluded  that,  given  the  importance  of  these  products  as  a  portal  into 
 consumers’  homes  for  content  in  the  digital  age,  further  consideration  of  how  changes  and  innovations  should  be  approved  is  warranted.  The  Order  initiates  a  Second  Further  Notice  of 
 Proposed  Rulemaking  (FNPRM)  to  examine  these  issues,  and  adopts  an  interim  policy  by  which  CableLabs  would  make  preliminary  determinations  regarding  new  outputs  and/  or  associated 
 content  protection  technologies,  subject  to  FCC  review. 
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 The  FCC  also  noted  that  it  will  address  Digital  Broadcast  Copy  Protection  issues  in  the  near  future. 
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