[Federal Register Volume 65, Number 209 (Friday, October 27, 2000)]
[Rules and Regulations]
[Pages 64388-64391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27732]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 15

[PP Docket No. 00-67; FCC 00-342]


Compatibility Between Cable Systems and Consumer Electronics 
Equipment

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: On September 14, 2000, the Federal Communications Commission 
adopted a Report and Order (R&O) on the labeling of digital television 
(DTV) receivers and other consumer electronics receiving devices. The 
labeling requirements are designed to ensure that consumers understand 
the capability of digital television equipment to operate with cable 
television systems. This will not only aid consumers in making informed 
purchasing decisions with respect to DTV equipment but also promote the 
overall transition from analog to digital television.

DATES: The rules in this document contain information collection 
requirements and are not effective until approved by the Office of 
Management and Budget. FCC will publish a document in the Federal 
Register announcing the effective date of these rules.
    Public and agency comments on the information collection are due 
December 26, 2000.

ADDRESSES: In addition to filing comments with the Office of Secretary, 
a copy of any comments on the information collection contained herein 
shall be submitted to Judy Boley, Federal Communications Commission,

[[Page 64389]]

Room 1-C804, 445 12th Street, SW., Washington, DC 20554, or via the 
Internet to [email protected].

FOR FURTHER INFORMATION CONTACT: Jonathan Levy (202-418-2030), Office 
of Plans and Policy, Federal Communications Commission. For additional 
information concerning the information collection(s) contained in this 
document, contact Judy Boley at (202) 418-0214, or via the Internet at 
[email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order, PP Docket No. 00-67, FCC 00-342, adopted September 14, 2000; 
released September 15, 2000. The full text of the Commission's Report 
and Order is available for inspection and copying during normal 
business hours in the FCC Reference Center (Room 
CY-A257), 445 12th Street, SW., Washington, DC 20554, or may be 
purchased from the Commission's copy contractor, International 
Transcription Service, Inc., (202) 857-3800, 1231 20th Street, NW., 
Washington, DC 20036. The Report and Order contains a new information 
collection subject to the Paperwork Reduction Act of 1995 (PRA), Public 
Law 104-13. It will be submitted to the Office of Management and Budget 
(OMB) for review under section 3507(d) of the PRA. OMB, the general 
public, and other Federal agencies are invited to comment on the new 
information collection contained in this proceeding.

Summary of the Report and Order

    1. The R&O adopts labeling requirements for three categories of 
digital television receivers and other consumer electronics TV 
receiving devices. The labeling requirements are designed to ensure 
that consumers understand the capability of digital television 
equipment to operate with cable television systems providing digital 
services. Following are the three consumer electronics TV receiving 
device labels that the Commission adopted. Commission rules require 
that any digital consumer electronics TV receiving device that does not 
provide one or more of the feature sets described in the labels may not 
be marketed as ``cable ready'' or ``cable compatible'' and that digital 
consumer electronics TV receiving devices that do provide one or more 
of these feature sets must be labeled as such. Because the new labeling 
requirements fall on consumer electronics equipment, the new rules are 
found in part 15 of 47 CFR (``Radio Frequency Devices'') rather than 
part 76 (``Multichannel Video and Cable Television Service'').
    (a) ``Digital Cable Ready 1'' is a consumer electronics TV 
receiving device capable of receiving analog basic, digital basic and 
digital premium cable television programming by direct connection to a 
cable system providing digital programming. This device does not have a 
1394 connector or other digital interface. A security card (or POD) 
provided by the cable operator is required to view encrypted 
programming.
    (b) ``Digital Cable Ready 2'' is a consumer electronics TV 
receiving device capable of receiving analog basic, digital basic and 
digital premium cable television programming by direct connection to a 
cable system providing digital programming. This receiving device will 
incorporate all features defined in Digital Cable Ready 1 and will also 
include the 1394 digital interface connector. A security card/POD 
provided by the cable operator is required to view encrypted 
programming.

    Note: The 1394 connector may be used for attaching the receiving 
device to various other consumer appliances, including a digital 
cable set-top box that incorporates the 1394 connector. Connection 
of a Digital Cable Ready 2 receiver to a digital set-top box may 
support advanced and interactive digital services and programming 
delivered by the cable system via the set-top box.

    (c) ``Digital Cable Ready 3'' is a consumer electronics TV 
receiving device capable of receiving analog basic, digital basic and 
digital premium cable television programming. This device will 
incorporate all features defined in Digital Cable Ready 1 and will also 
receive advanced and interactive digital services by direct connection 
to a cable system providing digital programming and advanced and 
interactive digital services. A security card/POD provided by the cable 
operator is required to view encrypted programming.
    2. The R&O also keeps PP Docket No. 00-67 open in order to give the 
Commission the option of incorporating into its rules specifications, 
on which the industries are still working, for the Digital Cable Ready 
3 receiver. Additionally, the R&O requires the cable and consumer 
electronics industries to report at intervals to the Commission on 
progress in implementing earlier agreements on technical standards for 
direct connection of digital television receivers to digital cable 
systems and on providing tuning and program scheduling information 
(Program and Scheduling Information Protocol or ``PSIP'' information) 
to support the navigation function of DTV receivers. The first report 
is due November 30, 2000 and subsequent reports are due April 30 and 
October 31, 2001 and April 30 and October 31, 2002.
    3. The Notice of Proposed Rulemaking, 65 FR 24671, April 27, 2000, 
in this proceeding also sought comment about scrambling of digital 
broadcast signals and their placement on cable service tiers and about 
whether the digital transition necessitates any amendment to Commission 
requirements that cable operators offer supplemental equipment to 
subscribers to enable them to utilize certain special features of their 
digital television receivers (e.g., ``picture in picture''). The R&O 
concludes the pending digital must carry proceeding is the appropriate 
venue for resolving digital broadcast signal carriage issues and that 
no action is required at this time with respect to our supplemental 
equipment rules.
    4. Additionally, the Notice of Proposed Rulemaking in this 
proceeding addressed licensing terms for copy protection technology. 
Because the question that emerged in the filed comments relates to the 
Commission's navigation devices rules, the Commission addressed this 
issue in a separate decision in the navigation devices docket. See 
Further Notice of Proposed Rulemaking, Memorandum Opinion & Order, and 
Declaratory Ruling in CS Docket No. 97-80, Implementation of Section 
304 of the Telecommunications Act of 1996-Commercial Availability of 
Navigation Devices, FCC 00-341, adopted Sept. 14, 2000.

Paperwork Reduction Act

    This Report and Order contains new information collection(s) 
subject to the PRA of 1995, Public Law 104-13. It will be submitted to 
the Office of Management and Budget (OMB) for review under Section 
3507(d) of the PRA, with a request for emergency approval. OMB, the 
general public, and other Federal agencies are invited to comment. 
Public and agency comments are due December 26, 2000. Comments should 
address: (a) whether the new or modified collection of information is 
necessary for the proper performance of the functions of the 
Commission, including whether the information shall have practical 
utility; (b) the accuracy of the Commission's burden estimates; (c) 
ways to enhance the quality, utility, and clarity of the information 
collected; and (d) ways to minimize the burden of the collection of 
information on the respondents, including the use of automated 
collection techniques or other forms of information technology.
    OMB Control Number: 3060-XXXX.

[[Page 64390]]

    Title: Compatibility Between Cable Systems and Consumer Electronics 
Equipment.
    Form No.: Not Applicable.
    Type of Review: New Collection.
    Respondents: Business or other for profit.
    Number of Respondents: 102.
    Estimated Time Per Response: 10-80 hours.
    Total Annual Burden: Varies by year and information collection (for 
progress reports, burden is 160 hours in 2000 and 320 hours per year in 
2001 and 2002; for labeling, burden is 1,400 hours in 2001 and 1,000 
hours/year in each later year).
    Cost to Respondents: Progress reports total cost is $12,000 in 2000 
and $24,000/year in each of 2001 and 2002. Labeling total cost is 
$28,000 in 2001 and $25,000/year in future years.
    Needs and Uses: The labeling requirements will ensure that 
consumers understand the capability of digital television equipment to 
operate with cable television systems. This will not only aid consumers 
in making informed purchasing decisions with respect to DTV equipment 
but also promote the overall transition from analog to digital 
television. The progress reports will allow the Commission to monitor 
industry development of specifications for the Digital Cable Ready 3 
receiver, as well as tracking industry progress in implementing earlier 
agreements on technical standards for direct connection of digital 
television receivers to digital cable systems and on providing tuning 
and program scheduling information (Program and Scheduling Information 
Protocol or ``PSIP'' information) to support the navigation function of 
DTV receivers. Through oversight and identification of outstanding 
areas of disagreement, the Commission will be able to encourage the 
industries to reach agreement on and put into effect specifications for 
DTV products that will offer major benefits to American consumers.

Final Regulatory Flexibility Certification

    The Regulatory Flexibility Act (RFA) \1\ requires that an agency 
prepare a regulatory flexibility analysis for notice-and-comment 
rulemaking proceedings, unless the agency certifies that ``the rule 
will not, if promulgated, have a significant economic impact on a 
substantial number of small entities.'' \2\ The Notice of Proposed 
Rulemaking (NPRM) \3\ in this proceeding proposed rules to resolve 
outstanding compatibility issues between cable television systems and 
consumer electronics equipment, in particular, requirements for 
labeling digital television (DTV) receivers to describe their 
capabilities to operate with digital cable television systems, and 
questions regarding licensing terms for copy protection technology. Out 
of an abundance of caution, the Commission published an Initial 
Regulatory Flexibility Analysis (IRFA) in the NPRM, even though the 
Commission was reasonably confident that any economic effect on small 
entities would be minimal. The IRFA sought written public comment on 
the proposed rules and our tentative conclusions in the IRFA. We 
received one written comment in response to the IRFA, from the U.S. 
Small Business Administration (SBA).\4\
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    \1\ The RFA, see 5 U.S.C. 601 et seq., has been amended by the 
Contract With America Advancement Act of 1996, Public Law 104-121, 
Stat. 847 (1996) (CWAAA). Title II of the CWAAA is the Small 
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).
    \2\ See 5 U.S.C. 605(b).
    \3\ Notice of Proposed Rulemaking, Compatibility Between Cable 
Systems and Consumer Electronics Equipment, PP Docket No. 00-67, FCC 
00-137; see also 65 F.R. 24671 (April 27, 2000).
    \4\ Comment by the Office of Advocacy, SBA, dated May 24, 2000.
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    As noted, the NPRM in this proceeding raised two issues--labeling 
of digital television receivers and copy protection technology 
licensing terms. The second issue has now been moved to another 
proceeding and resolved therein via a declaratory ruling.\5\ The 
present Report and Order addresses only the labeling of ``consumer 
electronics TV receiving devices, including TV receivers, videocassette 
recorders, and similar devices, that include digital video signal 
processing capability and incorporate features intended to be used with 
digital cable television service.'' The impact of the rules adopted is 
thus on manufacturers of consumer electronics TV receiving devices. The 
rules do not mandate any particular design or set of features for this 
equipment. They merely require manufacturers to attach specified labels 
to receiving devices that provide certain sets of features. Of course, 
manufacturers of consumer electronics TV receiving devices already 
package and label their products with various descriptive captions. 
Moreover, we believe that manufacturers generally find it in their 
interest to ensure that consumers understand the capabilities of the 
product being offered for sale. Hence, manufacturers actually have 
commercial incentives to label their products clearly. (Concomitantly, 
consumers also benefit from the information in product labels.) For 
these reasons, and for reasons we discuss additionally below, we 
certify, pursuant to the RFA, that the labeling requirements adopted in 
the present Report and Order will not have a significant economic 
impact on a substantial number of small entities. The Report and Order 
directs the National Cable Television Association and the Consumer 
Electronics Association to file reports with the Commission on November 
30, 2000, April 30, 2001, October 31, 2001, April 30, 2002, and October 
31, 2002 detailing the progress of their efforts to develop standards 
for a bidirectional direct connection DTV receiver and their progress 
in implementing their February 2000 agreements on technical 
requirements for direct connection of digital television receivers to 
digital cable systems and on provision of tuning and program scheduling 
information to support the navigation functions of DTV receivers. 
Because the requirements apply only to these two trade associations, 
which together do not constitute a substantial number of entities, we 
certify, pursuant to the RFA, that the reporting requirements will not 
have a significant impact on a substantial number of small entities.
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    \5\ See Further Notice of Proposed Rulemaking, Memorandum 
Opinion & Order, and Declaratory Ruling in CS Docket No. 97-80, 
Implementation of Section 304 of the Telecommunications Act of 
1996--Commercial Availability of Navigation Devices, FCC 00-341, 
adopted Sept. 14, 2000.
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    On the labeling issue as described in the IRFA, the SBA stated, 
``The Commission * * * asserts that its labeling rules would have a 
minimal impact, because labeling would be standardized, costs would be 
spread over sufficient quantities of goods as to be insubstantial, and 
manufacturers could pass costs on to their subscribers. But this 
ignores the differences in output or customer base that may exist 
between a small company and a large company. A business with less 
output or fewer customers might find its per unit costs are higher. The 
Commission should explore any such potential cost discrepancies based 
on business size, not simply dismiss them as minimal.'' As described in 
the Report and Order, pursuant to the new rule, manufacturers must 
label the pertinent products with labels that meet the requirements of 
Sec. 2.925 of the Commission's rules, 47 CFR 2.925. Manufacturers of 
transceivers must already label their equipment to demonstrate 
compliance with the Commission's equipment authorization rules. Such 
labels must ``be permanently affixed to the equipment and * * * be 
readily visible

[[Page 64391]]

to the purchaser at the time of purchase.'' Section 2.925(d). The 
manufacturer may choose the means to make the label permanent, 
including using a nameplate (of material of the manufacturer's 
choosing) fastened to the equipment with a permanent adhesive. While we 
do not wish to favor one type of labeling choice over another, we note 
that use of an adhesive label containing the additional information at 
issue should not create a significant economic impact for any 
manufacturer, and in fact probably represents an insignificant economic 
impact. The cost of paper labels with adhesive, containing brief 
information specified by rule, would appear to be minimal. Finally, the 
rules permit manufacturers to request alternative means of labeling. 
Section 2.925(e).
    The Commission will send a copy of the present Report and Order, 
including a copy of this final certification, in a report to be sent to 
Congress pursuant to the Small Business Regulatory Enforcement Fairness 
Act, see 5 U.S.C. 801(a)(1)(A). In addition, the Commission will send a 
copy of the Report and Order, including a copy of this final 
certification, to the Chief Counsel for Advocacy of the SBA.

List of Subjects in 47 CFR Part 15

    Labeling.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends part 15 of title 47 of the Code of 
Federal Regulations as follows:

PART 15--RADIO FREQUENCY DEVICES

    1. The authority citation for part 15 is revised to read as 
follows:

    Authority: 47 U.S.C. 154, 302, 303, 304, 307, 336, and 544A.

    2. Section 15.3 is amended by revising the last sentence in 
paragraph (aa) to read as follows:


Sec. 15.3  Definitions.

* * * * *
    (aa) * * * Such equipment shall comply with the technical standards 
specified in Sec. 15.118 and the provisions of Sec. 15.19(d).
* * * * *

    3. Section 15.19 paragraph (d) is amended by adding paragraphs 
(d)(1), (d)(2), (d)(3), and (d)(4) to read as follows:


Sec. 15.19  Labelling requirements.

    (d) * * *
    (1) Consumer electronics TV receiving devices, including TV 
receivers, videocassette recorders, and similar devices, that include 
digital video signal processing capability and incorporate features 
intended to be used with digital cable television service, but do not 
provide one or more of the feature sets described in paragraph (d)(2) 
of this section shall not be marketed with terminology that describes 
the device as ``cable ready'' or ``cable compatible'' or otherwise 
conveys the impression that the device is fully compatible with digital 
cable service. Devices marketed as ``digital cable ready'' or ``digital 
cable compatible'' or otherwise conveying the impression that the 
device is fully compatible with digital cable service must offer one or 
more of the feature sets (i.e., Digital Cable Ready 1, Digital Cable 
Ready 2, Digital Cable Ready 3) specified in paragraph (d)(2) of this 
section and carry the corresponding descriptive label or labels. With 
respect to their analog signal processing capabilities, these devices 
must also comply with the technical standards for cable ready equipment 
set forth in Sec. 15.118. Devices not marketed as ``digital cable 
ready'' or ``digital cable compatible'' may be accompanied by factual 
statements about the various features of the devices that are intended 
for use with digital cable service and/or the quality of such features, 
provided that such statements do not imply that the device is fully 
compatible with digital cable service. Statements relating to product 
features are generally acceptable where they are limited to one or more 
specific features of a device, rather than the device as a whole.
    (2) Descriptive Labels for consumer electronics TV receiving 
devices with digital signal processing capability.
    (i) Digital Cable Ready 1 refers to a consumer electronics TV 
receiving device capable of receiving analog basic, digital basic and 
digital premium cable television programming by direct connection to a 
cable system providing digital programming. This device does not have a 
1394 connector or other digital interface. A security card (or POD) 
provided by the cable operator is required to view encrypted 
programming.
    (ii) Digital Cable Ready 2 refers to a consumer electronics TV 
receiving device capable of receiving analog basic, digital basic and 
digital premium cable television programming by direct connection to a 
cable system providing digital programming. This receiving device will 
incorporate all features defined in Digital Cable Ready 1 and will also 
include the 1394 digital interface connector. A security card (or POD) 
provided by the cable operator is required to view encrypted 
programming.
    (iii) Digital Cable Ready 3 refers to a consumer electronics TV 
receiving device capable of receiving analog basic, digital basic and 
digital premium cable television programming. This device will 
incorporate all features defined in Digital Cable Ready 1 and will also 
receive advanced and interactive digital services by direct connection 
to a cable system providing digital programming and advanced and 
interactive digital services and programming. A security card (or POD) 
provided by the cable operator is required to view encrypted 
programming.
    (3) Consumer electronics TV receiving devices, including TV 
receivers, videocassette recorders, and similar devices, that include 
digital video signal processing capability and that provide one or more 
of the feature sets (i.e., Digital Cable Ready 1, Digital Cable Ready 
2, Digital Cable Ready 3) described in paragraph (d)(2) of this 
section, must carry the label or labels from paragraph (d)(2) of this 
section that describe the feature sets offered by the device. The 
format of the label or labels shall conform to the provisions of 
Sec. 2.925 (d) and (e) of this chapter.
    (4) The requirements of this section apply to consumer TV 
receivers, videocassette recorders and similar devices manufactured or 
imported for sale in this country on or after July 1, 2001.

    4. Section 15.118 is amended by adding a new sentence at the end of 
paragraph (a) to read as follows:


Sec. 15.118  Cable ready consumer electronics equipment.

    (a)  * * * Until such time as generally accepted testing standards 
are developed, paragraphs (c) and (d) of this section will apply only 
to the analog portion of covered consumer electronics TV receiving 
equipment.
* * * * *
[FR Doc. 00-27732 Filed 10-26-00; 8:45 am]
BILLING CODE 6712-01-P