STATEMENT OF
COMMISSIONER ROBERT M. MCDOWELL
Re: Implementation of Section 304 of the Telecommunications Act of 1996: Commercial 
Availability of Navigation Devices, CS Docket No. 97-80, Compatibility Between Cable 
Systems and Consumer Electronics Equipment, PP Docket No. 00-67.
Almost fifteen years ago, Congress directed the Commission to adopt regulations to 
“assure” the development of a competitive retail marketplace for set-top boxes and similar 
devices used to access multichannel video programming. Specifically, Section 629 of the 
Communications Act calls for regulations designed to foster the development and sale of 
“navigation devices” by all sorts of suppliers – including cable operators on the condition that 
they not cross-subsidize the cost of their boxes with revenue derived from their multichannel 
video offerings or other services.  The statute also bars the Commission from adopting any rules 
that would jeopardize the security of multichannel video services or thwart the rights of the 
provider to prevent theft of those service offerings. 
Since 1996, the Commission has written many chapters in the long saga to implement 
Congress’ intent as expressed in Section 629.  Our CableCARD rules represent many years of 
hard work, punctuated by a few years of sheer confusion, in an effort to create a competitive 
marketplace for cable-ready devices.    
Time and experience have made clear, however, that Congress’ goal of creating a robust 
consumer market for set-top devices has often seemed elusive.  In short, consumers who want to 
take advantage of retail options available today still face practical obstacles that can make third-
party devices less appealing.  
Nonetheless, precisely because Congress told us to, we are taking another stab at a 
remedy today.  Perhaps this time Sisyphus will get his boulder to actually stay on top of the hill.  
But should it roll back into the Valley of Unattained Goals, some may want to ask Congress to 
consider new options.
Throughout this latest chapter, we have worked closely with interested parties such as 
consumer groups, the cable industry, its competitors, consumer electronics companies and many 
others.  My hope is that today we have forged a workable compromise to the benefit of pay TV 
consumers.  Accordingly,
· I support the new rule requiring cable operators that deploy switched digital video within 
their networks to ensure that subscribers can access the linear channels for which they 
have paid, and I am pleased that the regulation allows operators technical options for 
meeting that mandate.  
· I also endorse the new self-installation rule, although I would have preferred a longer 
ramp-up period for cable operators who currently lack the back-office infrastructure to 
support consumers who run into problems with self-installs.  
· In addition, I am pleased that the new rules provide greater pricing transparency for 
consumers who want to compare the costs involved with purchasing a box at retail as 
opposed to leasing a box from their cable operator.  
· And I support establishing as a rule the approach the Commission has developed through 
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waivers to allow cable operators to deploy low-end, one-way HD boxes that integrate 
security and other functionality.  Although such devices do not comply with the 
CableCARD requirements, their relatively low cost should help drive demand for the 
deployment of digital networks more quickly while placing more cost-effective 
navigation power into the hands of consumers.  Yet because the new exemption does not 
extend to high-end devices that can record video or provide interactive features – in other 
words, the devices that are pouring over the horizon – it should not hinder the 
development of a more competitive retail market for navigation devices. 
· Finally, I support the compromise effort to update our IP-based interface requirements for 
two-way leased boxes.  By designing a rule that focuses on functionalities rather than 
specified standards, we provide some breathing room for technologists to innovate.  I 
remain somewhat concerned about establishing a hard deadline for certain functionalities 
that are not yet fully developed, but I appreciate my colleagues’ willingness to entertain 
reasonable requests for extension of that deadline if our prediction about the likely 
completion date for those features does not prove accurate.
I thank the staff of the Media Bureau and the Office of Strategic Planning and Policy 
Analysis for their tireless work on this Order.