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Comcast Ready To Take FCC To Court

Agency Refused to Grant Cable Operator Set-Top Waiver

By Ted Hearn -- Multichannel News, 9/4/2007 12:49:00 PM MT

Washington – Comcast is planning to take the Federal Communications Commission to court after the agency on Tuesday night refused to exempt three set-top boxes from rules intended to promote a retail consumer market for such boxes.

The FCC required more than 500 days to act on Comcast’s set-top waivers.

“We are disappointed by today's FCC decision, but we are pleased that we now have a decision that we can appeal to federal court. It is our intention to pursue promptly judicial review of this decision, which we continue to believe imposes significant additional costs on consumers without any corresponding benefit,” said Comcast executive vice president David L. Cohen moments after release of the FCC order.

Comcast intends to argue in court that the FCC under Republican chairman Kevin Martin engaged in inconsistent decision-making because other companies received wavers for the same boxes Comcast wanted to shield from the July 1, 2007 ban on the introduction of new boxes that integrate both signal security and channel selection functionalities.

“What we have done ... is focus on the operator who requested the waiver, rather than the box,” said FCC Republican Robert McDowell and FCC Democrat Jonathan Adelstein in a concurring statement.

The two regulators, while agreeing that waivers should not have been granted to Comcast, insisted that Comcast had not been treated fairly when it sought waivers for the Motorola’s DCT-700, Scientific-Atlanta’s Explorer-940, and the Pace Micro’s Chicago set-top boxes. 

“Many other waiver applicants sought and were granted relief for exactly the same boxes covered by the Comcast request,” the two said. “We concur in this order because of the inconsistent and arbitrary application of the waiver standard to applicants.”

Comcast appealed to the five FCC commissioners a ruling by the Media Bureau in January to reject Comcast’s waivers. FCC chairman Kevin Martin, who appoints the head of the Media Bureau, ordered the bureau to issue the waiver rejection.

FCC Democrat Michael Copps applauded Comcast’s defeat.

“The time for delay is over. I am delighted that Comcast consumers will soon be able to enjoy the benefits of a retail market for set top boxes. I am confident this will translate into lower prices and a better viewing experience for consumers,” Copps said.

In something of a footnote, Copps noted the law gave the FCC 90 days to grant set-top waivers and no deadline to issue denials. But he indicated that the 503 days the agency needed to conclude action on the Comcast waivers were excessive.

“Even though our decision complies with the letter of the law, I do not think it is consistent with its spirit,” Copps said.

Martin did not issue statement. Nor did FCC Republican Deborah Taylor Tate.

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