[Federal Register Volume 70, Number 52 (Friday, March 18, 2005)]
[Proposed Rules]
[Pages 13139-13143]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-5402]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 15 and 73

[ET Docket No. 05-24; FCC 05-17]


DTV Tuner Requirements

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: This document proposes to adjust the schedule by which new 
broadcast television receivers are required to include the capability 
to tune digital television (DTV) signals. The Commission request 
comment on whether there is need to revise the implementation schedule 
of the DTV tuner requirement for receivers with screen sizes 25 to 36 
inches and, if so, how that schedule should be revised to achieve our 
goal that all new television

[[Page 13140]]

receivers include DTV tuning capability by July 1, 2007.

DATES: Comments must be filed on or before April 18, 2005, and reply 
comments must be filed on or before May 2, 2005.

ADDRESSES: You may submit comments, identified by (ET Docket No. 05-24) 
by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's Web site: http://www.fcc.gov/cgb/ecfs/. Follow the instructions for submitting comments.
     People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by e-mail: [email protected] or phone: 202-418-
0530 or TTY: 202-418-0432.
    For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Alan Stillwell, Office of Engineering 
and Technology, (202) 418-2925, e-mail: [email protected], TTY 
(202) 418-2989.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rule Making (NPRM), ET Docket No. 05-24, FCC 05-17, adopted 
January 19, 2005, and released February 14, 2005. The full text of this 
document 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. The complete text of this document also may be 
purchased from the Commission's copy contractor, Best Copy and 
Printing, Inc. (BCPI), 445 12th Street, SW., Room, CY-B402, Washington, 
DC 20554. The full text may also be downloaded at: http://www.fcc.gov. 
Alternate formats are available to persons with disabilities at TTY 
(202) 418-7365.
    Pursuant to Sec. Sec.  1.415 and 1.419 of the Commission's rules, 
47 CFR 1.415, 1.419, interested parties may file comments on or before 
April 18, 2005, and reply comments on or before May 2, 2005. Comments 
may be filed using the Commission's Electronic Comment Filing System 
(ECFS) or by filing paper copies. See Electronic Filing of Documents in 
Rulemaking Proceedings, 63 FR 24121, May 1, 1998. Comments filed 
through the ECFS can be sent as an electronic file via the Internet to 
http://www.fcc.gov/e-file/ecfs.html. Generally, only one copy of an 
electronic submission must be filed. If multiple docket or rulemaking 
numbers appear in the caption of this proceeding, however, commenters 
must transmit one electronic copy of the comments to each docket or 
rulemaking number referenced in the caption. In completing the 
transmittal screen, commenters should include their full name, U.S. 
Postal Service mailing address, and the applicable docket or rulemaking 
number. Parties may also submit an electronic comment by Internet e-
mail. To get filing instructions for e-mail comments, commenters should 
send an e-mail to [email protected], and should include the following words 
in the body of the message, ``get form .'' A 
sample form and directions will be sent in reply. Parties who choose to 
file by paper must file an original and four copies of each filing. If 
more than one docket or rulemaking number appears in the caption of 
this proceeding, commenters must submit two additional copies for each 
additional docket or rulemaking number.
    All filings must be addressed to the Commission's Secretary, Office 
of the Secretary, Federal Communications Commission. Filings can be 
sent by hand or messenger delivery, by commercial overnight courier, or 
by first-class or overnight U.S. Postal Service mail (although we 
continue to experience delays in receiving U.S. Postal Service mail). 
The Commission's contractor, Natek, Inc., will receive hand-delivered 
or messenger-delivered paper filings for the Commission's Secretary at 
236 Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The 
filing hours at this location are 8 a.m. to 7 p.m. All hand deliveries 
must be held together with rubber bands or fasteners. Any envelopes 
must be disposed of before entering the building. Commercial overnight 
mail (other than U.S. Postal Service Express Mail and Priority Mail) 
must be sent to 9300 East Hampton Drive, Capitol Heights, MD 20743. 
U.S. Postal Service first-class mail, Express mail, and Priority Mail 
should be addressed to 445 12th Street, SW., Washington, DC 20554.

Summary of Notice of Proposed Rulemaking

    1. The Commission commences this proceeding to consider adjusting 
the schedule by which new broadcast television receivers with screen 
sizes 25 to 36 inches are required to include the capability to tune 
digital television (DTV) signals. This provision of the rules is an 
element of the Commission's phase-in plan for requiring that all new 
broadcast television receivers include DTV reception capability by July 
1, 2007. The DTV reception requirement was adopted by the Commission in 
the Second Report and Order and Second Memorandum Opinion and Order 
(DTV Tuner Order), 67 FR 63290, October 11, 2002, in the DTV review 
proceeding and is also often termed the ``DTV tuner requirement.'' This 
requirement is being phased-in over a four-year period to avoid 
imposing undue costs on manufacturers and consumers and to avoid 
disruption of the TV receiver market. On November 5, 2004, the Consumer 
Electronics Association and the Consumer Electronics Retailers 
Coalition (CEA-CERC) submitted a Petition for Rulemaking requesting 
that we eliminate the scheduled July 1, 2005, date for 50 percent of 
new TV receivers with screen sizes 25 to 36 inches to include DTV 
reception capability and advance the date on which 100 percent of such 
receivers must include that capability by three months, from July 1, 
2006, to March 1, 2006. CEA-CERC submit that this change is needed to 
resolve certain adverse consequences of the 50 percent aspects of the 
phase-in plan for the DTV tuner requirement that have become apparent 
recently through experience in retailing and manufacturing. In response 
to the CEA-CERC petition, we request comment on whether there is need 
to revise the implementation schedule of the DTV tuner requirement for 
receivers with screen sizes 25 to 36 inches and, if so, how that 
schedule should be revised to achieve our goal that all new television 
receivers include DTV tuning capability by July 1, 2007.
    2. In the DTV Tuner Order, the Commission adopted rules requiring 
that all TV receivers shipped in interstate commerce or imported into 
the United States, for sale or resale to the public, with screen sizes 
13 inches or larger and TV interface devices be capable of receiving 
the signals of DTV broadcast stations over-the-air no later than July 
1, 2007. Under these rules, TV broadcast receivers are required only to 
provide useable picture and sound commensurate with their video and 
audio capabilities when receiving DTV signals. The DTV tuner 
requirement was intended to facilitate the transition to digital 
television by promoting the availability of DTV reception equipment and 
to protect consumers by ensuring that their TV receivers will provide 
off-the-air TV reception in the digital world just as they do today. In 
order to minimize the impact of the DTV tuner requirement on both 
manufacturers and consumers, the Commission adopted a phase-in schedule 
that applies the

[[Page 13141]]

requirement first to receivers with the largest screens and then to 
progressively smaller screen receivers and TV interface devices. This 
phase-in plan is intended to allow increasing economies of scale with 
production volume to be realized so that tuner costs will be lower when 
they are required to be included in smaller sets and TV interface 
devices. The phase-in plan is currently as follows:
    Receivers with screen sizes 36'' and above--50% of a responsible 
party's units must include DTV tuners effective July 1, 2004; 100% of 
such units must include DTV tuners effective July 1, 2005;
    Receivers with screen sizes 25'' to 36''--50% of a responsible 
party's units must include DTV tuners effective July 1, 2005; 100% of 
such units must include DTV tuners effective July 1, 2006;
    Receivers with screen sizes 13'' to 24''--100% of all such units 
must include DTV tuners effective July 1, 2007;
    TV Interface Devices (videocassette recorders (VCRs), digital 
versatile disk (DVD) players/recorders, etc.) that receive broadcast 
television signals--100% of all such units must include DTV tuners 
effective July 1, 2007.
    3. In their petition for rulemaking, CEA-CERC request that we 
eliminate the July 1, 2005, requirement for 50 percent of TV receivers 
with screen sizes 25 to 36 inches to include DTV reception capability 
and instead advance from July 1, 2006, to March 1, 2006, date for all 
such receivers to include a DTV tuner. They submit that manufacturers 
and retailers experience with the 50 percent provision for 36 inch and 
larger receivers is that the 50 percent aspect of the phase-in plan is 
antithetical to the purpose of the requirement. CEA-CERC state that, in 
practice, the 50 percent requirement has proven to be unduly disruptive 
in the marketplace in ways unforeseen and, in fact, threatens to slow, 
rather than speed, consumer migration to TV receivers with DTV tuners. 
They indicate that this is because consumers typically choose a lower-
priced product with otherwise similar features except for the DTV 
tuner.
    4. The DTV tuner requirement is intended to provide this capability 
to the general population on a schedule that will promote a rapid 
completion of the transition while minimizing the potential for the 
incremental costs of DTV tuning capability to disrupt the television 
receiver market. At the time we adopted the 50 percent of production 
elements of the phase-in provisions of the DTV tuner requirement, our 
intent was that these intermediate increases in the proportions of new 
receivers with DTV tuners would gradually apply the tuner requirement 
to progressively greater proportions of receivers as manufacturers 
develop efficiencies in production and thereby minimize the impact of 
the tuner requirement on both manufacturers/importers and consumers. As 
described in the CEA-CERC petition, it now appears that the partial 
production elements of this plan may be impeding rather than promoting 
the introduction of TV receivers that include DTV tuners. We are 
initiating this rulemaking proceeding to consider whether there is a 
need to modify the implementation schedule of the DTV tuner requirement 
for receivers with screen sizes 25 to 36 inches to address the 
disruptive effects on the TV receiver market indicated in the CEA-CERC 
petition and, if so, to develop revisions to that plan that will 
achieve our goal that all new television receivers include DTV tuning 
capability by July 1, 2007, in a phased in approach that will help 
develop economies of scale, and our goal of furthering the DTV 
transition.
    5. In considering this matter, it is our intent that any revisions 
we may make to the tuner requirement should not serve to delay the 
completion of the DTV transition. We believe it is important that the 
implementation schedule under any such revisions should foster a more 
rapid introduction of DTV reception capability and in no event should 
extend the current July 1, 2007, date for full implementation. We also 
continue to believe that it is desirable and important to provide for 
the gradual introduction of the DTV tuner requirement in order to allow 
manufacturers and importers to develop the economies of scale that are 
necessary to reduce the costs of DTV tuners when they are included in 
smaller screen sets and other devices such as videocassette and DVD 
recorders that do not include a viewing screen.
    6. In this context, we request comment on whether there is need to 
revise the TV tuner requirement implementation schedule for receivers 
with screen sizes 25 to 36 inches and suggestions for specific 
revisions to the schedule for such devices to address that need. We 
specifically request comment on the approach suggested by CEA-CERC 
whereby the requirement that 50 percent of receivers with screen sizes 
25 inches to 36 inches incorporate a DTV tuner in the period from July 
1, 2005, to July 1, 2006, would be eliminated and replaced with a new 
provision requiring that all receivers with screen sizes 25 inches to 
36 inches be required to include a DTV tuner effective March 1, 2006. 
We also invite alternative approaches for addressing the market 
situation described in the CEA-CERC petition and intend to consider the 
full range of options that are consistent with our stated goals. 
However, commenting parties are advised that we do not intend to extend 
the July 1, 2007, date by which all broadcast television receivers 
include DTV reception capability.

Initial Regulatory Flexibility Analysis

    7. As required by the Regulatory Flexibility Act of 1980, as 
amended (``RFA''),\1\ the Commission has prepared this Initial 
Regulatory Flexibility Analysis (``IRFA'') of the possible significant 
economic impact on small entities by the policies and rules proposed in 
this Notice of Proposed Rulemaking (``NPRM''). Written public comments 
are requested on this IRFA. Comments must be identified as responses to 
the IRFA and must be filed by the deadlines for comments on the NPRM 
provided in paragraph 11. The Commission will send a copy of the NPRM, 
including this IRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration.\2\ In addition, the NPRM and IRFA (or 
summaries thereof) will be published in the Federal Register.\3\
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    \1\ See 5 U.S.C. 603. The RFA, See 5 U.S.C. 601-612, has been 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA), Pub. L. 104-121, Title II, 110 Stat. 857 (1996).
    \2\ See 5 U.S.C. 603(a).
    \3\ See id.
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    A. Need for and Objectives of the Proposed Rules. As described in 
the NPRM, the changes to the rules being considered in this proceeding 
are intended to ensure a smooth transition of the nation's television 
system to digital television. Beginning in 1987, the Commission 
undertook to bring the most up-to-date technology to broadcast 
television. That resulted in several Commission decisions, including 
those adopting a digital television (DTV) standard, DTV service rules, 
and a Table of DTV Allotments. The Table of DTV Allotments provides 
each existing television broadcaster with a second channel on which to 
operate a DTV station for the transition period, after which one of its 
channels will revert to the government for use in other services. The 
transition deadline established by Congress is December 31, 2006. 
Consistent with its efforts to promote the expeditious completion of 
the DTV transition, the Commission has adopted a requirement that all 
new television

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receivers imported or shipped in interstate commerce after July 1, 
2007, include the capability to receive DTV signals off-the-air. In 
order to minimize the impact of the DTV tuner requirement on both 
manufacturers and consumers, the Commission adopted a phase-in schedule 
that applies the DTV tuner requirement first to receivers with the 
screens and then to progressively smaller screen receivers and TV 
interface devices. The Consumer Electronics Association and the 
Consumer Electronics Retailers Coalition (CEA-CERC) submitted a 
petition for rule making requesting that the Commission eliminate the 
portion of the phase-in schedule requiring that 50 percent of TV 
receivers with screen sizes 25'' to 36'' include DTV reception 
capability from July 1, 2005, to July 1, 2006, and instead advance the 
date for requiring all such receivers to include a DTV tuner to March 
1, 2006, from July 1, 2006. CEA-CERC indicates that the 50 percent 
requirement has proven to be disruptive to the market in the case of 
larger screen receivers. We issued the NPRM to consider whether there 
is a need to modify the portion of the DTV tuner requirement phase-in 
plan that applies to receivers with screen sizes 24'' to 36'', and if 
so, to develop revisions to that plan that will achieve our goal that 
all new television receivers include DTV tuning capability by July 1, 
2007.
    B. Legal Basis. The authority for the action proposed in this 
rulemaking is contained in sections 4(i) & (j), 303, 307, 309 and 336 
of the Communications Act of 1934, as amended, 47 U.S.C. 154(i) & (j), 
303, 307, 309 and 336.
    C. Description and Estimate of the Number of Small Entities to 
Which the Proposed Rules Will Apply. The RFA directs the Commission to 
provide a description of and, where feasible, an estimate of the number 
of small entities that will be affected by the proposed rules.\4\ The 
RFA generally defines the term ``small entity'' as having the same 
meaning as the terms ``small business,'' ``small organization,'' and 
``small governmental entity.'' \5\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\6\ A small business concern is one which: 
(1) Is independently owned and operated; (2) is not dominant in its 
field of operation; and (3) satisfies any additional criteria 
established by the Small Business Administration (``SBA'').\7\
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    \4\ 5 U.S.C. 603(b)(3).
    \5\ 5 U.S.C. 601(6).
    \6\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small business concern'' in the Small Business Act, 15 U.S.C. 
632). Pursuant to 5 U.S.C. 601(3), the statutory definition of a 
small business applies ``unless an agency, after consultation with 
the Office of Advocacy of the Small Business Administration and 
after opportunity for public comment, establishes one or more 
definitions of such term which are appropriate to the activities of 
the agency and publishes such definition(s) in the Federal 
Register.''
    \7\ 15 U.S.C. 632.
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    Electronics Equipment Manufacturers. Rules adopted in this 
proceeding would apply to manufacturers of DTV receiving equipment and 
other types of consumer electronics equipment. The SBA has developed 
definitions of small entity for manufacturers of audio and video 
equipment \8\ as well as radio and television broadcasting and wireless 
communications equipment.\9\ These categories both include all such 
companies employing 750 or fewer employees. The Commission has not 
developed a definition of small entities applicable to manufacturers of 
electronic equipment used by consumers, as compared to industrial use 
by television licensees and related businesses. Therefore, we will 
utilize the SBA definitions applicable to manufacturers of audio and 
visual equipment and radio and television broadcasting and wireless 
communications equipment, since these are the two closest NAICS Codes 
applicable to the consumer electronics equipment manufacturing 
industry. However, these NAICS categories are broad and specific 
figures are not available as to how many of these establishments 
manufacture consumer equipment. According to the SBA's regulations, an 
audio and visual equipment manufacturer must have 750 or fewer 
employees in order to qualify as a small business concern.\10\ Census 
Bureau data indicates that there are 554 U.S. establishments that 
manufacture audio and visual equipment, and that 542 of these 
establishments have fewer than 500 employees and would be classified as 
small entities.\11\ The remaining 12 establishments have 500 or more 
employees; however, we are unable to determine how many of those have 
fewer than 750 employees and therefore, also qualify as small entities 
under the SBA definition. Under the SBA's regulations, a radio and 
television broadcasting and wireless communications equipment 
manufacturer must also have 750 or fewer employees in order to qualify 
as a small business concern.\12\ Census Bureau data indicates that 
there 1,215 U.S. establishments that manufacture radio and television 
broadcasting and wireless communications equipment, and that 1,150 of 
these establishments have fewer than 500 employees and would be 
classified as small entities.\13\ The remaining 65 establishments have 
500 or more employees; however, we are unable to determine how many of 
those have fewer than 750 employees and therefore, also qualify as 
small entities under the SBA definition. We therefore conclude that 
there are no more than 542 small manufacturers of audio and visual 
electronics equipment and no more than 1,150 small manufacturers of 
radio and television broadcasting and wireless communications equipment 
for consumer/household use.
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    \8\ 13 CFR 121.201 (NAICS Code 334310).
    \9\ 13 CFR 121.201 (NAICS Code 334220).
    \10\ 13 CFR 121.201 (NAICS Code 334310).
    \11\ Economics and Statistics Administration, Bureau of Census, 
U.S. Department of Commerce, 1997 Economic Census, Industry Series--
Manufacturing, Audio and Video Equipment Manufacturing, Table 4 at 9 
(1999). The amount of 500 employees was used to estimate the number 
of small business firms because the relevant Census categories 
stopped at 499 employees and began at 500 employees. No category for 
750 employees existed. Thus, the number is as accurate as it is 
possible to calculate with the available information.
    \12\ 13 CFR 121.201 (NAICS Code 513220).
    \13\ Economics and Statistics Administration, Bureau of Census, 
U.S. Department of Commerce, 1997 Economic Census, Industry Series-- 
Manufacturing, Radio and Television Broadcasting and Wireless 
Communications Equipment Manufacturing, Table 4 at 9 (1999). The 
amount of 500 employees was used to estimate the number of small 
business firms because the relevant Census categories stopped at 499 
employees and began at 500 employees. No category for 750 employees 
existed. Thus, the number is as accurate as it is possible to 
calculate with the available information.
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    Computer Manufacturers. The Commission has not developed a 
definition of small entities applicable to computer manufacturers. 
Therefore, we will utilize the SBA definition of electronic computers 
manufacturing. According to SBA regulations, a computer manufacturer 
must have 1,000 or fewer employees in order to qualify as a small 
entity.\14\ Census Bureau data indicates that there are 563 firms that 
manufacture electronic computers and of those, 544 have fewer than 
1,000 employees and qualify as small entities.\15\ The remaining 19 
firms have 1,000 or more employees. We conclude that there are 
approximately 544 small computer manufacturers.
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    \14\ 13 CFR 121.201 (NAICS Code 334111).
    \15\ Economics and Statistics Administration, Bureau of Census, 
U.S. Department of Commerce, 1997 Economic Census, Industry Series--
Manufacturing, Electronic Computer Manufacturing, Table 4 at 9 
(1999).
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    D. Description of Projected Reporting, Recordkeeping and other 
Compliance Requirements. At this time, we do not expect that the rule 
changes being considered in this proceeding would impose any 
significant additional

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recordkeeping or recordkeeping requirements. While the modifications 
being considered in the Notice could have an impact on consumer 
electronics manufacturers and broadcasters, such impact would be 
similarly costly for both large and small entities. We seek comment on 
whether others perceive a need for more extensive recordkeeping under 
specific options for addressing the issues in the NPRM and, if so, 
whether the burden would fall on large and small entities differently.
    E. Steps Taken to Minimize Significant Impact on Small Entities, 
and Significant Alternatives Considered. The RFA requires an agency to 
describe any significant alternatives that it has considered in 
reaching its proposed approach, which may include the following four 
alternatives (among others): (1) The establishment of differing 
compliance or reporting requirements or timetables that take into 
account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance or 
reporting requirements under the rule for small entities; (3) the use 
of performance, rather than design, standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities.\16\
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    \16\ 5 U.S.C. 603.
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    The rule changes under consideration in this proceeding would 
revise the schedule for implementation of the requirement that new 
television receivers include the capability for reception of broadcast 
DTV signals. We requested comment on a suggestion for revising the 
schedule submitted by CEA-CERC in their petition for rulemaking. We 
also invited interested parties to submit alternative suggestions for 
revising the implementation schedule.\17\
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    \17\ See NPRM, paragraph 8.
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    F. Federal Rules Which Duplicate, Overlap, or Conflict with the 
Commission's Proposals. None.
    8. Ordering Clauses. Pursuant to the authority contained in 
sections 2(a), 4(i) & (j), 7, and 303 of the Communications Act of 1934 
as amended, 47 U.S.C. 152(a), 154(i) & (j), 157, and 303, this Notice 
of Proposed Rule Making is adopted.
    9. The Commission's Consumer and Governmental Affairs Bureau, 
Reference Information Center, will send a copy of this NPRM, including 
the IRFA, to the Chief Counsel for Advocacy of the Small Business 
Administration, in accordance with the Regulatory Flexibility Act.

Federal Communications Commission.
Marlene H. Dortch,
 Secretary.
[FR Doc. 05-5402 Filed 3-17-05; 8:45 am]
BILLING CODE 6712-01-P