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6752.T
MATSUSHITA E IND
Last Change
1623.00 +16.00
TMM.PA
THOMSON MULTIMED
Last Change
22.89 +0.64
TMS.N
THOMSON MULTIMED
Last Change
22.52 +0.12
 
FCC Chief Slams TV Makers on Digital TV Conversion
July 12, 2002 07:17 PM ET
 

By Jeremy Pelofsky

WASHINGTON (Reuters) - U.S. Federal Communications Commission Chairman Michael Powell slammed consumer electronics makers on Friday for an inadequate commitment to accelerating the transition to higher quality digital television.

The Consumer Electronics Association (CEA) sent a letter to Powell earlier on Friday saying it would include equipment in new sets to receive digital signals within 18 months after a standard was established for connecting digital television sets to a cable system.

The trade group, which represents companies like Panasonic Matsushita Electric Industrial Co 6752.T and Thomson Multimedia TMS.N TMM.PA Inc., said its members were working to include tuners in sets over the next two to three years.

"The CE (consumer electronics) industry's response on DTV tuners is so limited, and loaded down with so many conditions, that I believe it amounts to no commitment at all," Powell said in a statement.

"I hope that the CE industry will reconsider its position and join with its industry colleagues in the effort to make progress today while we continue to work on issues that will take longer to resolve," he said.

The digital transition, which was designed to be completed by 2006, has been slowed in part by limited available content, potential piracy of content, and high-priced equipment needed to receive the higher-quality signals.

Powell proposed in April a schedule designed to jump-start the transition that has become mired in squabbling among broadcasters, cable providers and electronics manufacturers over what step should be taken first and by whom.

One part of his plan called for television set makers to include over-the-air digital tuners in half of all new sets with screens 36 inches and bigger by Jan. 1, 2004, half of sets 25 inches to 35 inches by Jan. 2005 and all sets 13 inches to 24 inches by the end of 2006.

CEA spokesman Jeff Joseph said it was unfortunate that Powell was disappointed with the industry's response.

"We believe our proposal truly sets a path that is in the best interest of our customers," he said. "The FCC is asking for public policy widgets and expecting them to be delivered at provider expense."

One manufacturer broke ranks a bit with the trade group, LG Electronics' 64010.KS Zenith, saying the timetable Powell set out for phasing in receivers "is possible" but it cannot do it alone.

"The extremely price competitive consumer electronics market demands a level playing field where all participants introduce integrated sets on a timetable similar to your plan," Zenith senior vice president Richard Lewis said in a letter to Powell.


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