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 STATEMENT  OF  COMMISSIONER  JONATHAN  S.  ADELSTEIN 
 Re:  Second  Report  and  Order  and  Second  Further  Notice  of  Proposed  Rulemaking  (CS  Docket  No.  97-  80;  PP  Docket  No.  00-  67) 


 Today,  the  Commission  responds  to  the  public  readiness  for  “Digital  Cable  Ready”  devices.  The  agreement  between  the  cable  television  and  consumer  electronics  industries 
 giving  consumers  the  ability  to  get  beyond  the  set-  top  box  and  plug  their  televisions  and  other  devices  directly  into  the  digital  cable  system  was  a  positive  step  in  the  resolution  of 
 long-  pending  and  complex  issues.  Today  we  take  the  first  step  toward  this  reality.  Although  not  perfect,  today’s  action  gives  us  reason  for  optimism  that  we  can  embark  on  a 
 world  of  innovation  and  growth  in  one-  way  digital  devices  and  digital  content  delivery  systems.  This  decision,  along  with  anticipated  resolution  of  these  issues  and  more  for  two-way 
 interactive  devices,  should  result  in  more  choice  of  new  products  and  services  using  the  cable  infrastructure  which  will  entice  consumers  to  embrace  the  digital  transition. 


 Our  goals  are  simple  –  to  promote  innovation,  interoperability,  and  the  inevitable  transition  to  high-  definition  digital  television.  It  is  the  methods  that  have  proven 
 complicated  over  the  past  several  years.  I  believe  we  have  struck  the  right  balance  today  between  the  delicate  and  competing  interests  at  stake.  We  adopt  rules  that  will  enable  new 
 business  models  to  launch.  We  adopt  processes  that  will  allow  the  Commission  to  serve  as  arbiter  of  disputes.  And  we  seek  further  comment  on  those  aspects  surrounding  the 
 agreement  where  we  are  least  able  to  predict  the  results  for  consumers,  cable  operators,  consumer  electronics  companies,  content  providers,  and  other  interested  parties. 


 Today’s  decision  is  fundamentally  about  innovation  in  the  delivery  of  high  value  content  into  people’s  homes,  and  in  the  products  that  will  receive  such  content.  We  are 
 taking  steps  to  ensure  that  all  technologies  will  be  evaluated  objectively  and  that  testing  and  certification  of  devices  can  be  administered  by  neutral  parties.  These  new  devices  and 
 technologies  will  be  central  to  the  consumer’s  experience  with  digital  content  as  it  is  integrated  into  the  home  network. 


 We  are  mindful  today  of  the  needs  of  copyright  owners  to  protect  high  value  content.  Our  action  does  not  affect  any  rights  or  limitations  of  copyright  holders  under  the 
 copyright  law.  We  preserve  flexibility  for  the  later  use  of  certain  methods  of  protecting  premium  content  if  it  is  shown  that  such  uses  are  necessary  and  consumer-  friendly. 


 I  look  forward  to  the  outcome  of  the  ongoing  discussions  to  devise  standards  and  rules  for  interactive,  two-  way  devices,  and  encourage  the  industries  to  consult  with  other 
 interested  parties  as  those  discussions  progress.  I  also  encourage  manufacturers  and  cable  operators  to  work  with  retailers  in  a  broad  outreach  campaign  to  the  public.  As  the  public 
 begins  to  enjoy  the  new  choices  available  to  them,  I  suspect  they  will  quickly  become  “Interactive  Digital  Cable  Ready”  and  demand  even  more  innovative  interactive  devices 
 which  can  be  brought  to  market  right  away. 
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