What's holding up high-definition TV? Three major problems remain unresolved: stations unable to afford new equipment have resorted to less-expensive resolution; disagreements concerning protecting digital contents appear headed for Congressional action; and opponents of mandating digital TV tuners in new sets are threatening to take the issue to court - Mass Media

USA Today (Society for the Advancement of Education), Jan, 2003 by Raymond L. Fischer

ALTHOUGH high-definition television's promise of wide, movie-like pictures with natural color and crisp, sharp detail was first proposed more than 20 years ago, only in the last few years has its promise approached reality. Eddie Fritts, president of the National Association of Broadcasters, representing 7,600 radio and TV stations, has long lobbied Congress to provide every TV station with a digital channel. According to Fritts, "Congress .. . thought about it, studied it, and [finally in 1996] mandated broadcasters to transition to digital TV." Congress gave every television station a second channel with the obligation to build a digital station to broadcast HDTV, and, in exchange for the new channels, stations would return their original analog channels to the Federal Communications Commission for auction. Subsequently, the FCC requested stations in the top 30 markets to broadcast digitally by Nov. 1, 1999, and most other stations to inaugurate digital television (DTV) by May 1, 2002.

On April 4, 2002, FCC Chairman Michael Powell outlined his plan for DTV in letters to Ernest Hollings (D.-S.C.), chairman of the Senate Commerce Committee, and Billy Tauzin (R.-La.), chairman of the House Energy and Commerce Committee. Powell expected the four major networks, HBO, and Showtime to provide HDTV during 50% of prime time by the fall of 2002. Network affiliates in the top 100 markets would provide DTV with no signal degradation by Jan. 1, 2003. Cable systems with digital tiers would carry, at no cost to stations and programmers, up to five channels with digital programming during 50% of prime time, and they would offer subscribers set-top boxes capable of displaying HDTV and connectors necessary to link to DTV sets. Satellite companies would have to carry up to five programs offering digital during 50% of prime time. TV manufacturers would provide DTV tuners with half of large sets by Jan. 1, 2004; all large sets by Jan. 1, 2005; half of medium-sized sets by Jan. 1, 2005; and all sets 13 inches and larger by Dec. 31, 2006.

Powell indicated that his plan did not preclude new DTV rules, and the FCC would continue to regulate mandatory cable carriage of local DTV signals, copy protection, "plug-and-play" TV sets, and various other measures. After an Apr. 9, 2002, meeting with the National Association of Broadcasters, he told reporters that the transition to DTV "is not important just to broadcasters. It is important to America and it has been languishing far too long." Although Powell termed the plan "completely voluntary," he emphasized that "there is always the threat of tougher rules. After all, we are regulators."

On May 17, the FCC approved procedures for substantial fines and harsher procedures; however, it wouldn't immediately levy tougher sanctions. Stations denied waivers would receive a letter of admonishment requiring them to report regularly on their progress. Admonished stations failing to meet digital deadlines would receive a notice of apparent liability for fines and an ultimatum to meet a series of 30-day construction milestones. The FCC could revoke the construction permit for any station failing to broadcast digitally a year after admonishment.

Powell considers the sanctions to be tough enough to preclude a station owner's temptation to ignore the digital conversion obligations. "While there are opportunities for waivers, the leash is short. We are willing to be quite tough if need be." At present, though, many stations granted FCC extensions have made little progress towards getting a digital signal on the air.

Digital television transition involves three principal groups or "players"--broadcasters, multichannel providers, and TV set manufacturers--all with various agendas and concerns. The first major problem was the FCC's mandate to broadcasters to provide DTV by May, 2002. Of 1,300 full-power commercial licensees, 863 considered the deadline unrealistic and asked for more time. Lack of equipment, construction crew shortages, and financing shortfalls supported requests for extended deadlines. The FCC could optionally agree to two six-month extensions to licensees providing documentation of equipment, legal, and/or zoning problems, lack of financing, or natural disasters and a projected date for providing DTV.

The estimated conventional digital facility cost of nearly $3,000,000 challenges small-market broadcasters, of whom 400 have given financial woes as the primary reason for requests for delays. Although the FCC proposed a plan of sanctions including fines or license revocation for stations failing to meet the May deadline, the commission has granted six-month waivers to 544 stations and asked for more information from 303 that are expected to get the waivers once they submit details of problems and provide a timetable. Among stations in the top 30 markets, the FCC will very likely extend waivers to five stations having zoning disputes or technical interference.

A second major problem concerns the FCC's granting permission to some stations to transmit DTV at low power. In November, 2001, low-power transmission really escalated when the FCC ruled that commercial stations could continue low-power transmission beyond the original Dec. 31, 2004, deadline. The highest-utilized HDTV resolution, 1080i, allows 1,080 lines per screen, whereas "progressive" transmission requires resolution as low as 480 lines. Although low-power transmission is much less expensive, it is subject to interference and therefore less effective. Approximately 30% of the more than 400 DTV stations broadcasting at low power reach very few homes.