“You should have options that competition provides,” Wheeler
wrote. “It’s time to unlock the set-top box market — let’s let innovators
create, and then let consumers choose.”
Since 1994, according to an analysis, the cost of cable set-top boxes rose 185% while the cost of computers, TVs & mobile phones dropped 90%
— The FCC (@FCC) January 27, 2016
This message is seemingly a direct response to a letter submitted to the FCC last November by a group of senators demanding action in regards to this industry.
Many cable companies did not exactly react well to the
initial senatorial missive, it’s doubtful much has changed on that front in the
past few months.
Sen. Edward Markey (D-Mass), who participated in the group,
was quick to issue a statement, lauding Wheeler.
“Consumer choice should fuel the video box market, not cable
company control,” Markey said.
“I commend Chairman Wheeler for his proposal to help ensure that consumers are
not captive to bloated rental fees forever.”
Randolph J. May, president of the nonprofit Free State
Foundation, believes everything is fine as-is.
"The video marketplace indisputably is now subject to effective competition, and this includes the navigation device market segment," May told the LA Times.
Meanwhile, others praised Wheeler’s move.
"The video marketplace indisputably is now subject to effective competition, and this includes the navigation device market segment," May told the LA Times.
Meanwhile, others praised Wheeler’s move.
“It’s a triple play that the cable companies will hate, but
fans and creators of award winning streaming programming will love,” said
Chip Pickering, CEO of advocacy group INCOMPAS. “We can’t truly realize the
golden age of television while consumers are stuck watching TV on the set-top
box of the past … by ending monopoly control and breaking open the set-top box
market, Chairman Wheeler and the FCC have the power to present a free market
solution for video devices that will bring both competition and innovation and
more video choice to consumers.”
“The fact remains that you’re in a walled garden controlled
by the cable company,” stated
John Bergmayer, a senior attorney at consumer group Public Knowledge.
“With the ever-increasing price of cable and all of the advances in technology,” added Marta Tellado, president and chief executive of Consumer Reports, “why should consumers have to keep renting a set-top box?”
“With the ever-increasing price of cable and all of the advances in technology,” added Marta Tellado, president and chief executive of Consumer Reports, “why should consumers have to keep renting a set-top box?”
On February 18, 2016, the FCC will be hosting
an Open Commission meeting where new STB rules and technical standards will be
voted on by the commissioners. Expect to hear much more from voices on both
sides of this debate over the course of the next month.
Author: Brian Cameron
Image via Shutterstock.
Follow @FYITV
A modern mobile phone bought by a person who is not signed up to a Network is sold at market price - and in the range of 500-1000 dollars. A STB today costs around 200 dollars for a good one...With phones usage fees are added on. The consumer is filling the pockets of the Telcos who make lots of profit...The Telcos are not losing money on the phones...This argument about the STB/CPE is a bit strange because you will have to buy a Router to have Broadband access and router rental is a Telco game too...Why is the FCC picking on the Cable industry...
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