Bellsouth Seeks Fcc Help

Television Digest with Consumer Electronics, Nov 30, 1998

BellSouth (BS) asked FCC to force cable industry to open digital set-top specification process overseen by CableLabs so it won't be caught short by standard it didn't help develop. In filing, BS said "oxymoronic" OpenCable process is open only to incumbent cable operators, and competitors such as BellSouth have been shut out. "We've been stonewalled," BS Entertainment Vp-Gen.

Counsel Tom Rawls said. CableLabs said BS didn't send CableLabs signed nondisclosure agreement (NDA), first step in permitting it entry into process, to CableLabs until Nov. 12, more than year after OpenCable began in Sept. 1997.

FCC has mandated that manufacturers must separate security features from digital set-tops by July 1, 2000, permitting consumers to buy boxes at retail and plug into security card for local cable system (TVD Sept 28 p6). Rawls said OpenCable doesn't meet FCC's openness standard. "It's a closed process to an open standard," he said, which will cost BS if standard comes out shortly before July 1, 2000. In that scenario, BS said, it would have little time to win changes in standard, and costs for complying would be higher. With its systems built over incumbent operators, Rawls said, "we use the same equipment vendors." However, he said, without advance notice incumbent operators would have through their membership in CableLabs, "we will have to modify" embedded hardware and software at higher cost.

CableLabs Dir.-Advanced Platforms & Services Laurie Schwartz said more than 270 outside parties already participate in OpenCable. While CableLabs is membership organization of MSOs, OpenCable has no membership restrictions, as long as company signs NDA. Schwartz said there had been minimal contact with BS. She said Rawls sent membership request Sept. 15. Recently, another BS official sent signed NDA dated Nov. 12, meaning BS is ready to be processed as OpenCable participant. Schwartz couldn't say whether any other overbuilders are part of OpenCable, but it's "real mix" of content providers, MSOs and hardware companies.

BS said it turned to FCC because of company's failure to receive response from CableLabs. Rawls said that after 10 weeks CableLabs still hadn't responded to his letter seeking inclusion. He said BS has spoken with other cable competitors that also are locked out of process, and some of them have been told that CableLabs board voted to exclude competitors. CableLabs officials denied such policy.

Schwartz said majority of specs would be authored by year-end, with interoperability tests scheduled for 1999. She said that, contrary to BS letter, OpenCable isn't standards body. Rather, it will release specifications, which then will be tested and debated around world, she said, and after wide opportunity for input must win approval of standard-setting bodies such as ITU.