Comparative Telecommunications Law

Brooklyn/Loyola Summer ProgramUIBE - 2006

Prof. Karl Manheim

4: Advanced Television (DTV / HDTV)

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TerminologyAdvanced Television (ATV) Any technology that improves audio & video quality over existing (NTSC) standards [1940] Enhanced Definition TV (EDTV) High Definition TV (HDTV)

display standards; Compare computer monitors

Digital Television (DTV) Signal transmission (bits/bytes) vs. analogHigh Definition Television (HDTV) In US, HDTV is Digital ATV (per ATSC)

Japan & France adopted analog HDTV (1991-1997)

Wikipedia article on DTV

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Basic FCC Decisions re ATVIs ATV in the public interestIf so, should the FCC play any roleIf so, what standards should be adoptedHow much spectrum should be allocatedWho should get the ATV channelsCan they be used for non-ATV purposes?What should happen to NTSC TV?

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Basic FCC Decisions re ATVIs ATV in the public interest

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Standard Definition Television NTSC (present system) began in 1938Initial: 12” round tube; 4:3 aspect ; 300 lines

Current: 525 scan lines (480 visible) x 500 pixels Unused 45 lines - Vertical Blanking Interval (VBI)

Interlaced (alternate line refresh; 60 times/second)

Better TV is possible Compare non-broadcast video

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How would ATV benefit public? Public Interest, Convenience & Necessity better quality

video (image, sharpness, shape, flicker, static)

audio (6 channel dolby stereo) ancillary services (e.g., interactive TV)

higher cost more diversity?

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Basic FCC Decisions re ATVIs ATV in the public interestIf so, should the FCC play any role

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Market or Regulated Public good?

FCC technology forcing or free market? Would broadcast & consumer industries have adopted ATV on their own?

Does it depend on whether ATV is compat-ible with current technolgies?compare adoption of Color, UHFcompare CDs, DVDs, VCRs

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Technology Forcing: Digital TunersDigital Tuner Order (2002) Phase in, beginning with larger screens

36”+ (7/1/04), 25”+ (3/1/06), 13”+ (7/1/07) Reason:

After 5 years of DTV, insufficient reception capability

Market forces haven’t worked All-Channel Receiver Act, 47 USC § 303(s)

Enacted for UHF

Amended Order (Nov. 2005) New target date: March 1, 2007 All TVs, irrespective of size

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CEA v. FCC (DC CA 2003)Judicial Review of Agency Orders Chevron test (Chevron v. NRDC, 1984)

1. De novo interpretation of “plain meaning”2. Unless agency’s interpretation of its authority is foreclosed by step 1, defer to agency (if reasonable)

ACRA: “adequately receiving all frequencies allocated”Leg. history: new frequencies only (UHF)Leg. history used only for ambiguity, not Chevron 1

APA Reasonableness standard of review

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Digital Tuners - really necessary?85% of households use cable/DBS boxes, CEA: digital tuners are unnecessary & useless

CoA: not unreasonable for FCC to impose useless costs on consumers Eventually, will speed migration to DTV In 2003, few HD channels on cable/satellite

Legal formalism vs. legal realism Subsidy for local OTA broadcasters

See also: “Must Carry” rules; broadcast flag Note: FCC’s unreasonable cost estimates ($50-75)

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Basic FCC Decisions re ATVIs ATV in the public interestIf so, should the FCC play any roleIf so, what standards should be adopted

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Developing ATV StandardsEstablishment by industry vs. regulation ATSC (compare NTSC) ATSC web site Merger of competing systems

All members of “Grand Alliance” are US co’sIndustrial policy -- giving US co’s competitive advantage?

Selection of uniform standard promotes development

Adoption of industry standards by FCC Abandoned in 1996. But see Sinclair Only digital req’d; discretion in format

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Why digital?Analog Digital

Storage is inefficient Very efficient storageCompression causes degradation

Compressed easily - no degradation (w/ “lossless”)

Generation loss each time copied

Each copy is the same as the original

Picture & sound quality varies with signal strength

Signal is 'all or nothing' (cliff effect)

Subject to noise and interference

Free from ghosting and noise

Format transmitted is the only format that can be displayed

Digital information can be reformatted to fit application

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Why digital?

Compression

Signal Clarity

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ATV Digital “Standards”Video Display Aspect ratio / Resolution (next slide) Compression (MPEG-2) (lossless v. lossy)Audio 5.1 Channel Dolby Digital

FL, FR, C, SL, SR, LFE (low frequency effect)Transmission 8-VSB (8-level vestigial sideband) (US standard)19.28 Mbps of data in a single 6 Mhz (multiplexed)

COFDM (European standard)Coded Orthogonal Frequency Division Multiplexing

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Aspect & Resolution Comparison

NTSCNational TV Standards

Com

Aspect 4X3Resolution 525

60cycles

ATSC Advisory Com on Adv. TV Service16X9High: 1080i 1920 pixels

(h)Medium: 720p 1280 pixels

(h)Standard: 480p 704 pixels

(h)

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Common Video Resolutions

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The 18 formats of Digital TV

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ATV Digital “Standards”Video Display Aspect ratio / Resolution (next slide) Compression (MPEG-2) (lossless v. lossy)Audio 5.1 Channel Dolby Digital

FL, FR, C, SL, SR, LFE (low frequency effect)Transmission 8-VSB (8-level vestigial sideband) (US standard)19.28 Mbps of data in a single 6 Mhz (multiplexed)

COFDM (European standard)Coded Orthogonal Frequency Division Multiplexing

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ATV Digital “Standards”Video Display Aspect ratio / Resolution (next slide) Compression (MPEG-2) (lossless v. lossy)Audio 5.1 Channel Dolby Digital

FL, FR, C, SL, SR, LFE (low frequency effect)Transmission 8-VSB (8-level vestigial sideband) (US standard)19.28 Mbps of data in a single 6 Mhz (multiplexed)

COFDM (European standard)Coded Orthogonal Frequency Division Multiplexing

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5.1 Channel Audio

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Flexible StandardsFCC Abandons HDTV in favor of flexible DTV Speed transition to DTV Concern for source compatibility Concern for cost of TV sets

How would it work compare computer monitors of different size / resolution

What else can DTV channel be used for? ancillary services

§ 336(e) requires fees from DTV broadcasters that offer ancillary and supplementary services

Transition rules for LPTV – Report and Order

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Basic FCC Decisions re ATVIs ATV in the public interestIf so, should the FCC play any roleIf so, what standards should be adoptedHow much spectrum should be allocated

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SpectrumBand Width – 6 MHz – same as NTSC Is this sufficient? Is it too much?

Smaller bandwidth is required for same resolution of DTV. 6 MHz permits 1 HDTV signal or several SDTV signals

Flexibility in secondary use of the bandwidth

Co-channel SeparationATV-ATV: 150 milesATV-NTSC: 100 miles compare to NTSC

VHF=170-220 miles UHF=155-205 miles

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Allocation & AllotmentAllocation in UHF Band Sources (relocation):

unused, low-power, separation bands, translator stations

non-commercial allotments(?)

Allotment per existing Table of Allotments Random pairing of NTSC-ATV channel Table of Allotments

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Basic FCC Decisions re ATVIs ATV in the public interestIf so, should the FCC play any roleIf so, what standards should be adoptedHow much spectrum should be allocatedWho should get the ATV channels

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ExpenseBroadcast station equipment $1.5M - $12M / station (half for later facilities)

Components digital camcorder: $35,000 (Sony's HDW-700) tape editors: $80,000 (D-5) multimedia effects device: $400,000 (HDME-7000) production switching device: $100,000 (HDS-7000) other: routers, testing equipment

Consumer Tuner (receiver): $600 - $1500 Display (monitor): $1500 - $10000 Recording equipment (VCR): ?

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License EligibilityInitially Limited to Existing Broadcasters “Public Interest” rationales offered by FCC Protect investment of existing broadcasters Given risks, most practical and expedient way to promote HDTV (existing broadcasters have experience)

Change in TV ownership structure would disrupt viewing Alternatives

Comparative Hearings Lottery Auction

Is this incumbent preference legal Ashbacker v. FCC (1945); Cowles (p.117) TCA § 201 [47 USC § 336]

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Eligibility of Non NTSC LicenseesOther applicants eligible once initial assignment is completeUse It or Lose It NTSC station must apply for ATV construction permit within 3 years

Must complete construction 2 yrs after

Otherwise, liceneses revert to FCC

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License OwnershipDuopoly & Multi-Ownership Prohibitions Suspended for NTSC / ATSCLicenses Coupled Transfer (only if NTSC license is also transferred)

Lose both upon revocation of either ATV term concurrent w/ NTSC license

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Basic FCC Decisions re ATVIs ATV in the public interestIf so, should the FCC play any roleIf so, what standards should be adoptedHow much spectrum should be allocatedWho should get the ATV channelsCan they be used for non-ATV purposes?

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Ancillary ServicesMultiplexing and frequency division audio data

teletext, paging, stock tickerinternet

other video servicesinteractive TVclosed circuit

Profit from non-broadcast uses

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Other features of ATVMore efficient use of spectrum Ancillary uses (e.g., data transmission)Interactive video Games; Electronic Program Guides (EPG)B’caster / Viewer control of programming easier to scramble signals (and charge)

(CA) conditional accessPay TV

easier to screen & filter

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Basic FCC Decisions re ATVIs ATV in the public interestIf so, should the FCC play any roleIf so, what standards should be adoptedHow much spectrum should be allocatedWho should get the ATV channelsCan they be used for non-ATV purposes?What should happen to NTSC TV?

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Transition Period - Phase InImplementation 5-1-99 for 4 networks in 10 largest markets

11-1-99 for 4 networks in 30 largest markets

5-1-02 for all other commercial stations

5-1-03 for all non-commercial stations90% stations now b’casting digital signals

2005 FCC Order on Transition

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Phase In - SimulcastingBalance - Original programming on DTV channels

Which would provide incentive to buy digital TV sets

Simulcasting of NTSC / ATSC channelsProtect consumer investments in analog TV setsLeast disruption to viewing habbits

FCC Order: ATSC simulcast of NTSC50% in 6th yr (2003)75% in 7th yr (2004)100% in 8th yr (2005)Then removed as incentive to purchase new sets

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Phase OutTermination of NTSC (& licenses) after conversion is complete Nominally, Dec., 31, 2006 Penetration rate exception (<85% per market)Actual DTV reception, or merely capability?

Surrender of NTSC licenses47 U.S.C. § 309(j)(14)(A)-(C) (1998)

Auction of analog licenses Balanced Budget Act of 1997

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DTV Transition & Public Safety Act DTV Act signed Feb. 8, 2006 <link>Part of Deficit Reduction Act of 2005 <link>

Passed 218-216 in House

New timelineBy Jan ’08 - auction of vacated analog spectrum

Except for 24 MHz going to public safety agenciesChannels 63, 64, 68, 69

Feb. 17, ‘09 - analog licenses surrendered Feb. 18, ’09 – TV broadcasting limited to channels 2-36, 38-51

54 - 698 megahertz

summary

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DTV Transition & Public Safety Act Digital Converter Box Assistance Program NTIA is allocated $990 million of spectrum auction revenues to send two $40 coupons to each house-hold that requests to participate in the program

Other NTIA Subsidies $30M to TV stations in NYC affected by 9/11 $65M to rural LPTV stations $156M for national alert system $50M for tsunami warning system

summary

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Selection of DTV ChannelsElection of Core Channel (Feb. 2005) NTSC/ATSC licensees must elect DTV channelMultiple Round elections to avoid conflictNegotiated Channel Arrangements

NTSC licensees w/o ATSC channel – 2d round

Tentative Desginations list 95% permanent channels selected (by 2/06)

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HDTV in EuropeDirective 95/47/EC Framework for Digital TV

Assure analog continuity (old ATV standard) Reporting req’t (States to Comm’n) Dir 83/189

Pay TV and auxiliary services allowed Transparency rather than technology forcing PI, interoperability, OND, competition apply

Standards Per Digital Video Broadcasting Group

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Cannal Satellite v. AGE (2002)Spanish Law Royal Decree-Law 1/1997

Transposes into nat’l law Directive 95/47Requires pre-certification of digital equipment

Decree 136/1997Compulsory Regist’n of conditional access (pay TV) DTV providers & equipment makers

Ruling Authorization/certification procedures violate competition rules & proportionalityBalancing of EC policy and national needs

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Related Digital IssuesDigital Misuse By consumers By industryAdvanced Services

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Digital Theft/MisuseCriterion Analog Digital

Duplication Costs

High media cost; inefficient

Low media cost; efficient

Duplication Quality

Degraded Exact copies

Distribution Physical copies; slow

Electronic; instantaneous

Retail price High Very highAfter-sale control

Infeasible Feasible

Infringement Incentive

Low High

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Digital Millennium Copyright Act17 USC § 1201: Circumvention of TPMs (a)(1)(A): No person shall circumvent a techno-logical measure that effectively controls access to a work protected under this title [copyright].Civil liability, even where one has a right to access the underlying content (e.g, fair use)

(a)(2): No person shall manufacture … offer, or traffic in any technology … that is designed for the purpose of circumventing a [TPM]Criminal liabilityCases: Sklyrov, Felton, ElcomSoft, Adobe

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Digital Rights Management (DRM)Package of permissions for digital content Content supplier sets permissions for usage

Access, copying, distribution Examples:

DivX (DVDs that can be viewed twice, then expire)TiVo (replay once, or within 2 days; no copying)Home networks (broadband video) (video sender)

Content is encrypted DRM contains decryption code Mostly for paid content

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ATSC (Broadcast) Flag 47 CFR 73.9002(b)Recognizes & Implements DRM Broadcast station “flags” DRM in video stream

Not copyright holder, or redistributor (MVPDs) Receiving device sees flag; reads DRM

All new “demodulator” devices after July 1, 2005Flag ignored by older receiving devices; no DRM

Demodulator output (to monitor) obeys DRMDeclared invalid ALA v. FCC (DC CA, May 6, 2005)

Ultra vires; not authorized by ACRA http://pacer.cadc.uscourts.gov/docs/common/opinions/200505/04-1037b.pdf

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DRM in EuropeDirective 2001/29/EC Requires member states to consider DRM in their fair competition lawsIn response to “massive online piracy”

Voluntary measures by industry to adopt DRM standards that assure interoperability

eEurope 2005 Action Plan High Level Group on DRMs

DRM to replace levies (surcharges on blank media)

Open standards

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Smart RadiosSoftware defined - “cognitive” - radios Operate on an “opportunistic basis”

FCC defers on “radical paradigm shift”FCC relaxes technical pre-approval

Since specifications are modified ad hoc Examples:

Cell phones Frequency hopping; power output

Spread Spectrum cordless phones Minimizes interference, bandwidth

Interruptable spectrum leasing

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Smart Radios in EuropeSpectrum Trading (Elec. Com’s Dir. 2002/21/EC) Buying & selling spectrum use rights

Makes spectrum use more efficientTransparent/reasonable use restrictions still apply

Eliminate fragmentation of national bandsRadio Spectrum Decision (RSD) 2002/676/EC Promote the use of smart radios

Binding Technical Implementation Measures to be developed by Radio Spectrum Committee (RSC)

Promote the use of advanced radiosE.g., wireless hearing devices, automobile radar

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CoverageWeds (5/31), Spectrum Management: 53-88Thurs (6/1), HDTV; Advanced Broadcast: 143-181Friday (6/2), MVDS: 181-215Mon (6/5), Satellite: 227-255Tues (6/6), Wireless Telephony: 299-335Weds (6/7), Broadband: 336-374Thurs (6/8), Internet: 375-410Fri (6/9), Catchup & ReviewSat (6/10), Final