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 STATEMENT  OF  COMMISSIONER  JONATHAN  S.  ADELSTEIN 
 In  the  Matter  of  Implementation  of  Section  304  of  the  Telecommunications  Act  of  1996,  Commercial  Availability  of  Navigation  Devices,  CS  Docket  No.  97-  80,  Second  Report  &  Order 
 (FCC  05-  76) 


 Today’s  decision  was  a  difficult  one.  The  Commission,  along  with  the  cable  and  consumer  electronics  industries,  continues  to  wrestle  with  how  best  to  realize  the  clear 
 Congressional  goal  of  assuring  the  commercial  availability  of  navigation  devices.  The  Commission  long  ago  decided  that  cable  operators  should  be  prohibited  as  of  a  date  certain  from 
 integrating  navigation  and  security  functionalities,  in  order  to  promote  the  competition  envisioned  by  the  Telecommunications  Act  of  1996.  Today’s  action  marks  the  third  time  we  have  extended 
 the  date  of  the  integration  ban,  which  would  have  gone  into  effect  in  July,  2006.  Cable  interests  would  have  preferred  that  we  eliminate  the  ban  entirely;  consumer  electronics  interests  would 
 have  preferred  that  we  keep  the  ban  in  place  and  on  schedule. 
 Given  past  delays,  and  even  more  importantly,  the  lack  of  any  real  alternative  to  leasing  a  set-  top  box  for  cable  subscribers  who  want  access  to  the  latest  digital  technologies,  I  was  very 
 hesitant  to  support  any  further  adjustment  to  the  integration  ban,  absent  a  compelling  reason  to  do  so.  While  a  close  call,  I  believe  today’s  decision  provides  a  justification  for  a  modest  extension. 
 We  make  a  strong  case  for  the  continued  existence  of  the  ban,  but  decide  to  postpone  it,  for  one  year  only,  to  give  the  players  involved  a  chance  to  determine  whether  a  downloadable  security 
 solution  is  feasible,  and  if  so,  when  it  could  be  implemented.  This  technology  would  have  costs  savings,  compared  to  the  alternative  of  physical  separation  of  navigation  and  security 
 functionalities,  for  the  benefit  of  consumers.  At  the  same  time,  in  this  item,  we  require  periodic  and  various  reports  to  ensure  that  cable  operators  live  up  to  existing  requirements  (e.  g.,  one-  way 
 “plug-  and-  play”  rules),  and  that  the  industries  make  decent  progress  toward  future  goals  (e.  g.,  two-  way  functionalities,  software  security  solution).  I  thank  my  colleagues  for  their  cooperation 
 in  bolstering  some  of  these  reporting  requirements.  I  will  be  keeping  a  close  eye  on  the  information  as  it  comes  in. 


 I  look  forward  to  progress  in  all  of  these  areas  to  promote  competition  and  innovation,  and,  ultimately,  greater  choice  for  consumers,  as  Congress  intended. 
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