FCC Record, Volume 25, No. 5, Pages 3497 to 4389, April 5 - April 23, 2010 Page: 4,279
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related issues.24 In the wake of this Two-way FNPRM, the six largest cable operators and a number of
consumer electronics manufacturers negotiated an agreement for bidirectional compatibility that
continues to rely and build on CableCARDs by using a middleware-based solution called "tru2way."
12. We are not convinced that the tru2way solution will assure the development of a commercial
retail market as directed by Congress. As an alternative, we seek to explore the potential for fulfilling this
statutory directive by providing consumer electronics manufacturers with the ability to build smart video
navigation devices that can access MVPD content regardless of the delivery technology the provider
employs and to ensure that necessary licensing agreements do not contain contractual terms that limit the
functionality of the devices. Although tru2way is designed to be a two-way solution for traditional cable
operators, it requires manufacturers to sign a license agreement that contains limitations that may hinder
innovation. For example, the agreement limits a device's ability to integrate video from multiple sources
into a consistent viewing experience by limiting the presentation and content of a tru2way device's
graphical user interface.26 This could prevent a tru2way device from searching a consumer's computer,
DVR, Netflix account, and cable-operator-provided video on demand offerings for a particular film or for
films that include the consumer's favorite actor. Furthermore, tru2way is an unworkable solution for
DBS and other non-cable providers. Even service from a cable provider like Verizon, which provides
most of its video using the same QAM delivery technology as traditional cable operators, but uses
Internet Protocol ("IP") for interactive functions such as video-on-demand, currently is not compatible
with tru2way." Finally, the fact that the DBS providers are the second and third largest MVPDs,
continue to gain market share, and yet are not subject to the integration ban also may be impeding the
development of a vibrant retail market by artificially limiting the market for competitive retail devices.2n
Despite the importance of being able to expand the retail market to reach the DBS providers' networks,
most consumer electronics manufacturers acknowledge that an attempt to establish standards for
navigation devices that would work with each of the different delivery technologies without some
intermediation would be impractical and prohibitively expensive."
13. The approaches considered to date have a number of inherent limitations. Both the one-way
CableCARD and tru2way approaches focus on television sets and digital video recorders ("DVRs") as the
initial consumer device, with that device housing security (through the CableCARD), tuning, and
navigation functions. Yet delivery platforms continue to evolve at a rapid pace. As these delivery
24 Implementation of Section 304 of the Telecommunications Act of 1 996: Commercial Availability of Navigation
Devices, 22 FCC Rcd 12024 (2007) ("Two-way FNPRM').
25 Bidirectional Digital Cable Televisions incorporating tru2way are now available from Panasonic in test markets.
As of October 6, 2009. the tru2way MOU has been signed by ADB, Alticast, AMD, Broadcom, Cisco, Digeo,
EchoStar, Funai, Intel, LG Electronics, Motorola, Pace, Panasonic, Samsung, Sony, Texas Instruments, Thomson,
Tivo, and Toshiba, as well as the cable operators Comcast, Cox, Time Warner, Charter, Cablevision, and Bright
26 See, e.g., <tru2way> Host Device License Agreement at 6, 22, available at
http://www.opencable.com/downloads/tru2way agreement.pdf (referencing a document that defines "appropriate
behavior" for devices that separate "CE Mode" from "Cable Mode"); see also OpenCableTM Specifications -
OpenCableTM Host Device Core Functional Requirements, available at
http://www.opencable.com/specifications/host.html (cataloging the technical specifications and testing requirements
necessary to develop a tru2way device).
27 See Letter from Dee May, Vice President, Federal Regulatory, Verizon, to Marlene H. Dortch, Secretary, Federal
Communications Commission, CS Docket No. 97-80, at 1-2 (August 27, 2008).
STraditional cable operators and Verizon FiOS service currently serve only 65% of MVPD subscribers and 55-60%
of all households. SNL Kagan (2009).
" Letter from Peter M. Fannon, Vice President Technology Policy, Government & Regulation, Panasonic, and Paul
G. Schomburg, Senior Manager, Government & Public Affairs, to Marlene H. Dortch, Secretary, Federal
Communications Commission, CS Docket No. 97-80, at 3 (Oct. 30, 2007).
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United States. Federal Communications Commission. FCC Record, Volume 25, No. 5, Pages 3497 to 4389, April 5 - April 23, 2010, book, April 2010; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc28495/m1/796/: accessed November 17, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.