FCC Deregulation Of Set-Top Boxes: What Does It Mean?

On February 18, the FCC opened a rulemaking process to deregulate the cable set top box. Currently, cable, satellite and telco multi-system operators (MSOs) require subscribers to use only boxes they furnish. These are generally rented to subscribers at an average cost per household of $231 per year. The proposed regulations would permit consumers to purchase boxes on their own, once uniform technical standards have been set. As FCC Commissioner Jessica Rosenworcel said in justifying the move: "Costs are too high, innovation is slow and competition is too limited."Deep-pocketed interest groups have weighed in on both sides of the proposed regulations, beginning what promises to be a hard fought process.