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 STATEMENT  OF  COMMISSIONER  KEVIN  J.  MARTIN 
 Re:  Implementation  of  Section  304  of  the  Telecommunications  Act  of  1996;  Commercial  Availability  of  Navigation  Devices;  Compatibility  Between  Cable  Systems  and  Consumer 
 Electronics  Equipment,  Second  Report  and  Order  and  Second  Further  Notice  of  Proposed  Rulemaking,  CS  Docket  No.  97-  80;  PP  Docket  No.  00-  67 


 I  support  today’s  decision  on  compatibility  between  cable  systems  and  consumer  electronics  equipment.  I  believe  it  is  extremely  important  for  the  Commission  to  resolve  outstanding  DTV-related 
 issues  quickly  so  that  affected  industries  and  consumers  know  the  rules  of  the  road.  As  I  wrote  a  year  ago,  resolving  issues  surrounding  digital  cable  compatibility  would  benefit 
 consumers  significantly  by  allowing  the  majority  of  consumers  –  about  70  percent  of  consumers  who  access  their  programming  via  cable  –  to  more  easily  view  digital  programming.  I  am  glad 
 that  we  are  taking  action  on  this  and  hope  that  manufacturers  can  now  incorporate  digital  broadcast  and  cable  reception  capabilities  for  approximately  the  same  cost  as  the  digital  broadcast 
 tuner  alone.  By  ensuring  equipment  functionality  and  interoperability  for  digital  cable  systems,  our  action  allows  manufacturers  to  build  fully  integrated  “digital  cable  ready”  sets  that  also 
 incorporate  broadcast  tuners. 
 I  am  disappointed  that  we  were  not  able  to  resolve  the  Broadcast  Flag  proceeding  at  the  same  time.  Acting  on  the  content  protection  rules  in  both  the  Plug  &  Play  proceeding  and  the 
 Broadcast  Flag  proceeding  at  the  same  time  would  have  clarified  the  rules  of  the  road  for  all  participants  in  the  DTV  transition.  Still,  I  am  pleased  that  the  Commission  has  committed  in  this 
 item  to  resolving  the  Broadcast  Flag  proceeding  in  the  near  future,  and  I  look  forward  to  working  with  my  colleagues  on  this  difficult  and  important  issue. 


 I  also  note  some  concerns  that  I  have  about  the  process  used  to  reach  this  agreement.  A  number  of  parties  complained  to  the  Commission  that  they  were  not  afforded  an  opportunity  to  express 
 their  concerns  during  the  negotiations  that  culminated  in  the  Plug  &  Play  agreement.  These  parties  argue  that  the  agreement  between  the  cable  and  consumer  electronics  industries  –  which  is 
 limited  to  one-  way  products  –  impacts  them.  I  understand  that  a  similar  round  of  industry  discussions  focused  on  interactive,  two-  way  products  is  about  to  start.  I  strongly  encourage  that 
 all  interested  parties  be  allowed  to  participate  in  setting  the  groundwork  for  any  necessary  rules. 
 Finally,  I  note  the  difficulty  of  these  issues  and  the  importance  of  ensuring  that  our  rules  do  not  impede  the  legal  rights  of  copyright  holders  to  protect  their  content. 


 In  all,  I  believe  that  today’s  decision  is  a  good  step  forward  for  the  transition  to  digital  television. 
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