Death Row For the Integrated Set-Top
Here’s a vivid depiction of how radical a change the FCC’s AllVid proposal would be to the way cable, satellite and telco TV operators currently deliver video services (see FCC’s ‘AllVid’ Gateway Would Require Six IP Video Streams and AT&T U-verse TV Would Not Meet FCC’s AllVid Gateway Requirement).
On page 19 of the commission’s notice of inquiry describing AllVid is a diagram showing how the FCC-mandated “set-back” adapters and gateways would look hooked up in a consumer’s home.
The diagrams show that the adapter/gateway would sit apart from an “AllVid-compatible DVR” — leased from an operator or purchased at retail — or and “AllVid-compatible television” (see below). The current CableCard rule (pointlessly) requires MSOs to provide removable CableCards in their leased set-tops — but now the FCC wants to split out the customer-premises equipment functions into physically separate devices.
Remember, MVPDs would be required to provide an AllVid adapter/gateway to every new subscriber.
Which means in order to provide exactly the same digital TV service it does today, an operator would need to provide at least two separate pieces of equipment.
In the “set-back” model, that’s one AllVid adapter — plus one DVR or set-top-like box to provide the navigation functions — per television in the home. In the gateway model, that’s potentially just one residential gateway plus AllVid-compatible receivers for each TV (and there is of course no guarantee any subscriber will have purchased an AllVid-compatible TV or DVR).
Is there any chance this would not be more costly for consumers to receive the same level of service they get today with fully integrated set-top boxes?
It’s possible. IMS Research’s Stephen Froehlich, for one, thinks such an FCC rule could “significantly decrease” the overall cost of customer-premises equipment for pay-TV operators by forcing them to migrate to standardized IP-based gateway architectures (see FCC AllVid Rule Would ‘Ban The Set-Top As We Know It’: Analyst). Of course, if it were possible for MSOs to cut capex significantly using a residential gateway model, you would have to believe they could do it more easily and cheaply without an FCC-mandated solution.
What do you think? Add your comments below.
NotAGeek commented:
Take the geek out of all of us and AllVid is bad. The majority of PayTV subscribers Pay To Watch TV. They pick up the phone and complain if there is an interruption in the video or audio even for the smallest instance. Taking the AllVid concept detailed who supports the TV experience on the AllVid Compatible Television. If the government is planning to take this path then they should pay to pick up the tab for the PayTV call centers.
Todd Spangler commented:
Marc,
Thanks for the post. I agree with all your points!
MarcTayer commented:
A few comments.
First, context. I'm one of those guys who is generally pro-government and thinks the government can play a very effective and constructive role with respect to things like protecting consumers and businesses from Wall Street sharks, environmental polluters, drug and insurance companies, and the like.
Second, the complexity and nuances of this entire future IP set-top/gateway issue has all the signs of being a multi-year work order for FCC staffers. They not only will need to deal with cable operators this time, but also with DBS, TelcoTV, and probably even over-the-toppers.
Third, the FCC is on the right track conceptually and architecturally with the IP Gateway feeding multiple set-tops and devices in the home. However, the Video Service Provider space is quite competitive these days. Isn't it better to let these players work it out themselves in Darwinian fashion, with the consumer increasingly becoming the winner?
Fourth, maybe this new endeavor is an implicit acknowledgment of the failure of CableCard wrt wasting inordinate amounts of time and money. Perhaps "going bigger" with a whole home IP Gateway architecture is their path to redemption (::
ChefJoe commented:
I think that I was getting clear QAM cable in Seattle to my tv and home-built DVR computer just fine. Then Comcast rolled out project calvary and half my channels got encrypted requiring a DTA for my TV and a DTA for my TiVo computer.
This diagram looks exactly the same as my current setup, except that allvid is designed to talk to the internet too.
So, it looks like it wouldn't be more expensive at all hardware wise, just the standard development costs of progress.