I mentioned
the FCC's outdated and problematic rate regulations for "basic tier"
services on cable systems in an April blog post. The FCC's ban on encryption of
basic tier cable services is another regulatory burden that the agency should
eliminate.
The ban on basic tier encryption was adopted for the long-gone
analog era of cable services. Encryption is a common practice in the video
programming market, with programmers typically requiring encryption by cable
providers as a condition of carriage. By eliminating the basic tier encryption
ban cable providers would be able to activate and deactivate consumer cable
services remotely, thereby avoiding the need for service calls and reducing
installation costs to consumers.
Fortunately,
the FCC has recognized that the basic tier encryption ban can drive up costs to
cable operators and consumers through waivers. Even better, the FCC has proposed to lift the basic tier
encryption ban entirely in a Notice
published in October 2011. A March letter from more than a dozen cable provider CEOs reiterates many
of the Notice's reasons for its proposal to end the ban on basic tier
encryption. The FCC should follow through on its proposal.
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